Almost 5 million sq. mtrs. waiting to to issued.
By Dr Sanjay Chaturvedi
According to Authorities, TDR certificate aggregating to one crore sq. mtrs issued as Transfer of Development Rights in Mumbai Municipal limits. That means ten crore sq. ft. TDR issued and recognized by authorities. According to the authority, DCR 1991 section 33(7) had generated 1800.414 sq. mtrs and SRA schemes had generated 64, 28, 605.424 sq.mtrs of TDR.
Total 2404 certificates issued to generate these one crore sq.mtrs of TDR in the city. At present the going rate of TDR is Rs.2300/- per sq.ft. and is likely to fall drastically.
“HDIL`s Mumbai International Airport (MIAL) project got a green signal as the issue with respect to `eligibility criteria` has been sorted and MMRDA has commenced the shifting of eligible slum dwellers from MIAL slums to Kurla Premier Compound. This decision of MMRDA is a positive move for HDIL as (1) it paves way for Phase-II of theproject leading to ramp up in phase-I & II of the project. (2) The development work in phases is likely to help increase TDR generation. trade expect TDR generation to exceed 1 msf post two quarters; this is higher from company`s earlier guidance of 0.75-0.9 msf per quarter for FY12 given in their Q4FY11 conference call. (3) Tax rategoing forward might be lower than earlier as MAT rate.
MIAL phase-I shifting commences: “MMRDA has commenced shifting of all eligible slum dwellers from MIAL slums to Kurla Premier Compound and also have issued allotment letter for flats to eligible slum dwellers. The total slum dwellering families are ~28,000 families. According to estimates almost 75% of the construction work has been completed and most of the buildings are in ready to shift stage. This shifting clears the cloud over the work on the MIAL project.
TDR Generation to be higher: “The management of HDIL in Q4FY11 conference call, had given a guidance of 0.75-0.9 msf per quarter TDR recognition for FY12. Post the current development, trade expects that work on other phases of MIALproject to ramp up and see TDR generation exceed 1 msf post two quarters. This is likely to lead to higher cash generation and fall in TDR prices.
DB Realty, another big player is sitting on huge sq. footage of TDR and looking to sell in the open market. According to sources, SPPL, another one lakh sq. mtrs of TDR is in pipe line to be issued in next two months.
Tax rate may fall very marginally: “Higher TDR generation is likely to make tax rate fall marginally as TDR is taxed at MAT.“