Pune Cantonment Board
Pune: A cash-strapped Pune Cantonment Board want to unlock the commercial potential of a 5.43-acre prime defence land parcel in Koregaon Park. The PCB requires at least Rs 12 crore every month to meet salaries and pensions and pay basic bills such as water and electricity. Its monthly revenue is currently not more than Rs 2 crore, leaving it heavily dependent on financial assistance from the Centre. Pawar said the board received Rs 25 crore in aid from the Ministry of Defence two months ago to meet expenses.
Therefore, we have to look for revenue options to sustain the board,” a senior cantonment official said. You Can Also Check: Gold Rate in Pune | Silver Rate in Pune | Bank Holidays in Pune | Public Holidays in Pune | Petrol Price in Pune | Diesel Price in Pune | CNG Price in Pune | LPG Price in Pune Stay updated with the latest Pune news.
Currently, we are hugely dependent on the grant-in-aid given by the Ministry of Defence,” PCB chief executive officer Vidyadhar Pawar told TOI . Since the parcel is already classified as ‘C’ land and is under the board’s management, officials said a change of land purpose is not required. Considering the existing real estate and market potential of the area, we feel it can become a concrete revenue source for us,” Pawar said. Either way, it can generate substantial revenue,” another official said. Real-estate experts and activists said the board should undertake a professional valuation and feasibility study of both properties before deciding the development model. “Given the strategic location of the Koregaon Park parcel, even a modest commercial development could potentially create a sizable recurring income stream if the land remains under public ownership,” an expert who did not wish to be named. Urban planning experts said the board should evaluate long-term lease, rental and revenue-sharing models rather than permanently transfer development rights. Such models, they said, would allow the cantonment to retain ownership while generating recurring revenue. Once private players are allowed to construct facilities, they will exploit the situation,” activist Sanjay Kawade said “A transparent tendering process, independent valuation, competitive bidding and clearly defined lease conditions would be crucial before any commercial development is permitted,“ activist Rajabhau Chavan said.
The high-value property can become a major and sustainable source of revenue for the civic body. The fenced plot, classified as ‘C’ land and under the management of the cantonment board, has not been unused for decades. Koregaon Park is among Pune’s most commercially valuable real estate locations. Cantonment officials believe the property could generate several crores of rupees if put to commercial use. “As per our estimation, it can generate substantial revenue which will be sufficient for the cantonment board to function smoothly. The board has submitted a proposal to the Principal Directorate of Defence Estates (PDDE), Southern Command, seeking statutory sanction to commercially utilise the land. “Once we receive the sanction, we will assess its commercial potential. “Now, with no funds, the cantonment board is unable to provide even basic civic services like repair roads, maintain street lights and gardens. People are complaining on multiple fronts. The board is simultaneously awaiting sanction from the PDDE office to commercially utilise its old court land parcel on MG Road, a commercially prominent stretch in Pune. “Once we get the sanction, we can introduce a suitable revenue model at the site. It could be a commercial complex under public-private partnership or we could construct our own infrastructure. However, experts and cantonment-area residents have cautioned the board against entering into commercial arrangements that could result in its land being controlled or exploited by private entities for decades. “The board needs to be cautious while using its land plots commercially. Private players can exploit the cantonment’s poor financial condition. The board should create its own infrastructure and rent it out for commercial purposes. Download the TOI App.
Before 2014, the board generated more than Rs 100 crore annually through LBT that gave it greater financial autonomy.
Officials said the financial situation deteriorated sharply after the abolition of Local Body Tax following the implementation of GST .