surya kiran
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Can be done in multiple ways.
1. Corporation owns place. Current market value 100 Rs. Post development real estate value can increase to lets say 150 Rs. Now, the corporation has the ability to raise more money by mortgaging. This is one possibility.
2. Corporation does not own place. Buys place in connivance with the government functionary. Govt functionary buys and get titles cleared for 100 Rs. Sells it to business house for 500 Rs. Which develops it and sells it for 1000 Rs.
3. Increase in real estate results in increase in collections by way of taxes (indirect to the state kitty)
There are lots of ways to do this
