NAGPUR: The planned Kanhan Metro extension is set to transform not just the transport network of the area, but also facilitate denser construction and commercial growth within 500 metres along the corridor. This approach mirrors what was implemented in phase 1 and will continue in phase 2.
The government notification has given initial approval for Transit-Oriented Development (TOD) along the 1.4km extension spanning from Kanhan River to Kanhan Town. This model aims to concentrate residential, commercial, and mixed-use developments near mass transit routes, enabling more efficient living and working conditions close to Metro stations.
According to the outlined funding mechanism in the official order, planning authorities can allow increased floor space index (FSI) for land within the 500-metre vicinity after collecting a premium. Half of the revenue generated by these additional development rights is expected to be allocated to the project implementing agency or the state’s urban transport fund.
A higher FSI permits developers to create more built-up space on the same plot, thereby enhancing the property value in the vicinity of the new Kanhan Town station and the associated elevated alignment. This could stimulate the development of new housing, retail spaces, offices, and other commercial ventures along the corridor, although the extent of this development will be influenced by the detailed TOD plan and local infrastructure capabilities. Nagpur’s current Metro corridor regulations allow an FSI of up to 4, depending on factors like plot size and road width, but the notification does not specify permissible FSI for this corridor, merely granting principle approval for TOD.
The government resolution also opens avenues for revenue generation through commercial uses of land transferred to MahaMetro, including properties at Metro depots. Additional revenue streams may involve station naming rights, advertisements, parking leases, kiosks, and events hosted on Metro grounds.
Authorities can also leverage provisions to increase development charges by up to 100% for major urban transport projects and impose a 1% surcharge on stamp duty. The revenue acquired through these services will be directed into a dedicated urban transport fund to manage project loans, maintenance, and future infrastructure developments.
The TOD component is particularly crucial, as MahaMetro will need to raise ₹155.18 crore through institutional loans for the ₹310.35-crore extension and will carry the burden of repaying the loan and its interest. The Metro authority will also be responsible for any cost overruns beyond the approved project budget.
This fully elevated extension will introduce one station in Kanhan Town, with an expected completion date of December 2027. It will require 9,835 square metres of permanent land.
However, the government’s resolution has yet to clarify which land parcels are available for commercial development, the amount of additional FSI, projected earnings, or the agency tasked with crafting the detailed TOD plan. These factors will play a crucial role in determining whether the Metro merely connects to Kanhan or serves as the foundation for its urban expansion.
