The amount raised through such hike ought to be utilized for basic infrastructure facilities like roads, sanitation and water supply. While townships and housing and commercial projects do benefit cities, it also put an extra burden on local self-governing bodies and the state, primarily responsible for providing basic infrastructure. The revenue collected from the prevailing development charge is grossly insufficient when compared to the investment that the civic bodies have to make for ensuring basic infrastructure to new projects.
At Pune Municipal Corporation (PMC) where promoters and developers, driven by some latest income-tax benefit, made a beeline in the last three to four months for getting their projects approved. The PMC earned Rs 200 crore through development charges but it will have to spend Rs 700 crore for providing infrastructure facilities to these projects!........Pawar for hike in development charges-Pune-Cities-The Times of India
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