The decision comes in the middle of a pandemic-induced slowdown, when all major infrastructure projects in the state are struggling to raise funds.
A notification issued by the Urban Development Department on September 10 said as per the Mumbai Municipal Corporation Act, 1888, and Maharashtra Municipal Corporation Act, 1949, 1per cent of the revenue will be collected by the Stamps and Registration Department and given for Mumbai, Pune and Nagpur metro rail projects. The additional charge will be applicable on all property deals from February 8, 2019, it said.
The government is studying different fundraising models for major infrastructure projects, a department official said. “The stamp duty levied on property will help the projects immediately. The emphasis will be on continuing the projects and completing them within the deadline.”
Mumbai Mirror had reported on September 4 that the Mumbai Metropolitan Region Development Authority (MMRDA) was struggling to raise funds for the metro project. If loans of Rs 29,000 crore do not come through in the next six months, the MMRDA may have to withdraw its fixed deposits of Rs 13,000 crore to fund big-ticket projects.
The planning agency has Rs 1.25 lakh crore tied up in 12 metro corridor projects, including around Rs 60,000 crore in seven under-construction lines and three that are in different stages of planning. Another key project is the Mumbai Trans Harbour Link, estimated to cost Rs 23,000 crore and likely to be completed by 2022.
All of these infrastructure projects are capital intensive. Sources said that on average, the annual expenditure on the projects as well as human resources and ancillaries touches around Rs 7,000 crore.
Pune Metro, which will connect Pune Central and the areas of Pimpri and Chinchwad, is targeted for operations by the next year. Its estimated cost is of Rs 11,420 crore. Nagpur Metro Rail Project will consist of a 38.215-km corridor, 38 stations and 2 depots. It is estimated to cost Rs 8,260 crore and is expected to be completed by 2021.
The stamp duty is the largest revenue earner for the government, after GST and sales tax and VAT. In 2019-20, the state earned Rs 29,500 crore through stamp duty. In 2020-21, it expects to raise only an additional Rs 500 crore.