The Hindu 04.01.2014
BBMP looking at selling some leased properties at market price: Mayor
Mayor B.S. Sathyanarayana said here on Friday that the Bruhat Bangalore Mahanagara Palike would urge the government to provide special grants totalling Rs. 1,000 crore over the next three years as it will “help the BBMP to close loans and clear the pending bills and become financially stable.”
He also said: “The BBMP is now looking at leased properties. Some properties may be sold at market rate, which will bring some revenue to the civic body. We will seek government’s approval for the same.” He added that there were many properties whose lease periods have expired. The officials have been directed to prepare a list of leased properties.
The BBMP has already pledged Krishna Rajendra Market and Public Utility Building with the HUDCO (Housing and Urban Development Corporation) towards “loan restructuring” i.e. closing some loans with high interest rates by borrowing at low interest rates.
The Mayor announced that soon a memorandum of understanding would be signed with corporates for maintenance of BBMP’s parks, lakes and hospitals. “We have asked the Chief Minister to give us a date to hold a summit for the purpose at Freedom Park,” he added.
The Bruhat Bangalore Mahanagara Palike has outstanding loans totalling more than Rs. 3,500 crore and pending bills totalling Rs. 1,600 crore.
The civic body’s main revenue source is property tax. Though there are over 16 lakh properties in the city and the tax target is over Rs. 2,000 cr., the BBMP has been able to garner only Rs. 1,300 crore. Though there are over six lakh traders with commercial tax licence, only around 40,000 trade licences have been issued by the BBMP.
Civic body to seek Rs. 1,000 crore special grants from government.
