Kakinada: The selling of Transformable Development Right (TDR) bonds has become a tough task for the Kakinada Municipal Corporation (KMC) as builders have not come forward to purchase them. The KMC wants to float TDR Bonds worth Rs 100 crore to mobilise resources for their ‘Smart City Project’, expecting builders to subscribe to them.
But they expressed their helplessness in this, blaming current market conditions and the City Planning rules too. The KMC’s aim now is to mobilise funds from each department besides other sources of revenue.
TDR bonds are given as compensation in place of cash to those who lose property in the city and can, in turn, opt to sell this to builders while they construct houses or complexes elsewhere. Neither builder nor house owner need pay the City Planning Department anything when constructing the buildings.
Builders, who have already started projects, cannot purchase the bonds as getting additional permissions will pose a problem. Parking space was one such problem for additional floors built, and therefore it was not viable for them, according to Garapati Rayudu, chairman of the Confederation of Real Estate and Developers Association of India (CREDAI), East Godavari district. However, according to City Planning Department officials, the rules do not permit more than five floors even if builders purchase the bonds.
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