The central and east corporations will transfer revenue from Premium Floor Area Ratio (FAR) and advertisements to Bengaluru - Smart Infrastructure Ltd. (B-SMILE) for its projects, which include tunnel road, elevated corridors, and Sancharayukta. While the east corporation has committed to transferring full revenue from the two streams, the central corporation has agreed to transfer only 50% of these revenues.
In the budget estimates, the east city corporation has estimated ₹120 crore from advertisement revenue and ₹600 crore from premium FAR revenue, all of which it has committed to transfer to B-SMILE. However, the central corporation is transferring only 50% of its advertisement revenue, amounting to ₹71.25 crore, and 50% of its premium FAR revenue, amounting to ₹175 crore, to B-SMILE. Although neither corporation has specified the works for which the revenue is being transferred, the payment has been labelled as “Contribution to B-SMILE”.
It may be recalled that B-SMILE was directed by the Housing and Urban Development Corporation (HUDCO) to submit a government order transferring proceeds from premium FAR and advertisement revenue directly to the SPV to safeguard repayment of the loan it is providing for the construction of tunnel roads.
