PUNE: The Pimpri-Chinchwad Municipal Corporation is likely to face a shortfall of Rs 1,019 crore for its development works, included in the city development plan, in the current fiscal as well as in the next financial year, a report prepared by the civic body has said.

The civic body, which will require Rs 3,952 crore for various projects, has prepared an 18-page report to be submitted to the state finance commission for grants needed to make up for the shortfall. The report is expected to be approved by the civic general body on May 9, before it is sent to the finance commission.

"The chairman of state finance commission, S A Dange, who visited municipal corporations to assess the quantum of grants they needed and the changes required in the rules to improve their financial condition, has directed civic bodies to send a report to the finance commission," said Pramod Bhosale, chief accounts officer, PCMC.

In its report, the PCMC has suggested that the state government should refund 50% of the royalty collected from it for development projects and also allow it to use the money collected in the form of education tax for secondary education. The report has sought service tax exemption for consultants. Besides change in the rules for service charges, the civic body has also demanded an increase in their rates, which were last revised 10 years ago.

Moreover, the PCMC has suggested that it must get a share of the stamp duty. It has asked the state government to direct Maharashtra Industrial Development Corporation and Pimpri-Chinchwad New Township Development Authority to share the cost of laying water pipeline from Pavana dam to Nigdi. The civic administration has also demanded 20% share in the entertainment tax, instead of the existing 10%.

The civic body has suggested direct transfer of grants by the Centre and the state government under the Jawaharlal Nehru National Urban Renewal Mission. The report said the grants should match the approved project cost, including cost escalation if any.

The civic body said taking permission of the state government should not be mandatory for civic bodies whose annual budget is above Rs 1,500 crore. "There should be no condition of mortgaging properties for loans to civic bodies and loans should be given by HUDCO and nationalized banks at 4% interest rate. They must be allowed to take overdraft and cash credit from banks when they require temporary funds," the report said.

Proposing ways to increase the revenue of civic bodies, the report stated that the corporations can set up commercial complexes and vegetable markets in densely populated areas. "The civic bodies can earn monthly rent by issuing licences to hawkers and stall holders. They can also implement pay and park schemes and hawker zones in open spaces to get additional income," the report added.Eom/siddharth gaikwad