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THEME PAPER

initial sale was done at a rate of requirement. MMRDA could bridges, it was decided to build
Rs. 30,000 per square metre in have put the entire land on lease service roads, bicycle tracks,
1993 which has seen an upward for different time periods so that exclusive bus lanes and
trend in the consecutive auctions the leasing price could be walkways on both sides. The
done in 1995 (Rs. 42,500), 2000 revised from time to time. Along total cost was estimated to be
(Rs. 86,000), 2006 (Rs, 1,53,000) with leasing rents, MMRDA Rs.460 crore. The project was
and 2007 (Rs. 5,04,000). In the could have generated revenue taken up by the Ahmedabad
two auctions of 2006 and 2007, by imposing development Urban Development Authority
MMRDA raised Rs. 51 billion charges and be erment levy in (AUDA).
from hardly 13 hectares of land. the impact zone. Along with AUDA used a town planning
The most recent sale in 2019 has this, since the development of mechanism for land
fetched close to Rs. 20,00,000 per BKC also impacts the value of development. Land acquisition
square metre. Apart from leasing the land that surrounds the in India is not an easy task with
and auctioning, MMRDA does complex, the ULBs and the state the the Act specifying higher
not have the authority to collect government should capture the compensation for affected
taxes. MMRDA has successfully value increment using different families, comprehensive
used the value capture tools taxes like the property tax, rehabilitation and rese lement
through auctioning of 80-year motor vehicle tax, etc. All such and reclaim of unused land, etc.
leases. The FSI limit has also increments in taxes and charges and compensation. A mixture of
been increased from time to time should be escrowed for payment the two policies was used by
both for residential as well as to the project financing AUDA for the development of
commercial purposes. However, authority. the entire stretch. Most of the
in the various auctions done by Ring Road Project, Ahmedabad part of the ring road was
MMRDA, a sizeable amount of declared as Town Planning
The Sardar Patel ring road is a
land has already been sold to Scheme area. Final plots in
76.3 km road network planned
various private entities. The rectangular shapes were
to strengthen the existing road
auctioning has enabled MMRDA promised to the landowners
network within the city of
to generate financial resources who possessed their land along
Ahmedabad. The road network
for major urban infrastructure the road stretch. With the
provides easy access inside the
projects, like a new metro rail cooperation of the citizens, the
city and also from the outskirts.
system, a 23-km trans-harbor land was taken with their
The 60-metre-wide ring road
bridge, etc. in the city. consent without giving any
reduces the traffic congestion on
However, if an alternate peripheral roads, increases financial reward. Conventional
mechanism to fund these connectivity and guides the land acquisition methods were
infrastructure projects existed, development and expansion of used for areas that were
MMRDA would still be in Ahmedabad in a larger region. designated as agricultural zones
possession of the land which The project was implemented in in the master plan. Only 13.1 km
could have been used for various three phases. The third phase out of the total of 76.3 km had to
other purposes in the future. extended the road by connecting be acquired.
While there are different facilities like flyover and Different financing methods
methods of borrowing available underpasses at major junctions. were used in different phases for
in the market, streamlining the Along with 17 flyovers, 5 financing the road project. In the
repayment remains a major underpasses, 2 railway over- first phase, AUDA invested

26 HUDCO-HSMI Publication