Staff Reporter
Panaji
The revenue of the town and country planning (TCP) department increased more than three times in 2023-24, reflecting the frenzied demand for real estate in the state.
According to the Goa economic survey 2024-25 released on Wednesday, earnings of the department shot up to Rs 13,439.5 crore in 2023-24, from Rs 4,801.3 crore in 2022-23, making it the highest revenue generating department for the government.
The department, which earns through land conversion fees, processing charges for the approval of building plans, etc, contributed approximately 60 per cent to the total revenue earned by major departments such as registration, commercial tax, excise, electricity, transport, PWD and Captain of Ports.
This year looks equally good to the TCP department with income of Rs 11,092.4 crore until December 2024, the survey has indicated. It has pointed out that the TCP and commercial tax departments are the major contributors to government revenues. Goa presently is witnessing a surge in demand for real estate from investors and buyers, looking for a second home, as well as the overseas Goans.
The boom has led to the construction of farmhouses in the coastal belt of the state as well as a spate of land conversions.
Cashing in on the demand for real estate, the TCP department in June 2024 revised the fee structure for the conversion of land for residential and commercial purpose. The conversion of a plot costs Rs 1,000 per square metre, if the plot size is more than 500 sq m, plus a flat processing fee of Rs 10,000.
The conversion of plot to settlement or commercial zone in the regional plan or the outline development plan costs Rs 50 per sq m for a plot size less than 500 sq m. For conversion to industrial zone, the fees vary between Rs 200 per sq m and Rs 500 per sq m, depending on the area of the land being converted.
In the Goa budget 2025-26, the government announced the setting up of a steering committee of the TCP department to regulate land conversions.
The committee will give the approval for mega residential and commercial projects, the Chief Minister said, adding that an assessment of the carrying capacity of the state (for real estate projects) will also be carried out.
