State plans to cash in on infra projects to fuel growth

MUMBAI: The state government is discussing plans to earn revenue by implementing Transport Oriented Development (TOD). Two areas identified for the implementation are the Virar-Alibaug multimodal corridor and growth centres in the Bhiwandi-Kalyan region.
The revenue earned from TOD would be spent on developing infrastructure in the region, including development of growth centres, which will enable people to stay near their workplace.
Recently, top government officials visited the USA to study and examine the TOD implementation in the San Francisco Bay area. In a TOD model, road and rail projects are built to realize the value of land. In some US states, the government earns revenue through various schemes and increases development in the growth centres.
Here, the Virar-Alibaug multimodal corridor will have both road and rail links while Bhiwandi will have growth centres.
"We should learn a lesson on realization of land value once infrastructure has been built by the government," said a government official. "When the state government or local civic bodies build road and rail infrastructure, they should ensure that the government gets revenue from these transport projects to develop the area further," he said.
The official explained that when the state government will builds roads or railway lines in the region, the land prices as a consequence are realized by the owners and developers. However when a TOD is implemented, the higher values are also shared by the government. Officials said initially they would try and capture the land value through various measures but later they could also go in for joint projects with developers.
"We have discussed granting higher FSI on the main connecting roads in the Bhiwandi region. This FSI will be given at a premium rate and will help build up revenue for further infrastructure development," the government officials said.
The Virar-Alibaug corridor will thus not only cut down the travel time, it will also lead to development along its route. "We would like people to use only one mode of travel to their workplace. This will cut down the number of people on the roads and railways," they said.
"We are examining a number of ways to capture the land values and put the money to good use for further development," they added.
The lessons from the Bay area in California are thus being put to use in the Mumbai region.