Urban News

  • Increase font size
  • Default font size
  • Decrease font size
General Administration

NMC revenue going down, but Rs 200cr loan proposed

Print PDF

The Times of India         20.11.2013

NMC revenue going down, but Rs 200cr loan proposed

NAGPUR: The Nagpur Municipal Corporation (NMC) house will discuss a proposal to raise Rs200 crore loan in the general body meeting on Wednesday. But the civic body's stand on the proposal seems questionable, if revenue data is considered.

Even as the civic body is facing financial deficit due to strong opposition to local body tax (LBT), revenue from other major sources has also dwindled due to the apathy of office bearers and administration. The question that needs to be asked is whether NMC is being pushed into a debt-trap due to its failure in implementing developmental projects as planned.

Standing committee chairman Avinash Thakre had directed the administration to moot a proposal seeking approval to raise Rs200 crore loan. The reason cited by Thakre was financial deficit of Rs150 crore in this fiscal following replacement of octroi by LBT.

According to LBT data, revenue from octroi was Rs296 crore between April 1 and November 18, 2012. In the corresponding period in this fiscal, revenue from LBT is Rs187 crore, including Rs34 crore from stamp duty. There is a financial deficit of Rs109 crore, but not Rs150 crore as claimed.

However, revenue shortfall has hit other departments too, including property tax department. Thakre set a target to recover Rs222 crore from property tax in this fiscal. Up to November 18, revenue was Rs61.76 crore as against last fiscal's Rs69.41 crore.

NMC sources blame this on non-implementation of capital-based property tax and the administration's apathy in implementing six-monthly tax system.

Similarly, the water works department handed over water works to a private operator, but revenue has not increased. The revenue was Rs72.77 crore as on October 31, as against last fiscal's Rs64.70 crore. Of this 7.68% increase, 5% is due to the water tariff hike. In fact, the water works usually witness around 10% natural growth every year.

Overall NMC revenue as on October 31 stands at Rs372 crore as against last fiscal's Rs474 crore, a deficit of Rs102 crore.

A couple of days ago, Thakre himself said that the revenue from town planning department too had come down this fiscal. However, the BJP-led ruling alliance keeps blaming the financial deficit on LBT. Interestingly, the BJP had itself fuelled the protests against LBT and even filed a petition in the high court.

Now, the civic body is proposing a Rs200 crore loan to add to the current debt of around Rs220 crore.

 

HMDA to appoint auditors, architects for green channel

Print PDF

The New Indian Express      20.11.2013

HMDA to appoint auditors, architects for green channel

With Hyderabad Metropolitan Development Authority (HMDA) deciding to reintroduce Green Channel concept for speedy disposal of development permissions, it has decided to appoint licensed document auditors and licensed architects.

The concept will be introduced in a phased manner making it applicable initially to layout approvals. Under the ‘Green Channel’ scheme, a panel of architects and document auditors who are conversant with town planning rules, regulations and laws, will be empanelled and licensed to scrutinise applications by the HMDA in a transparent manner.

In this connection, the HMDA held meetings with Andhra Pradesh Bar Council as well as Council of Architecture for empanelment of licensed advocates and licensed architects for issuing development permissions.

After the meetings, the HMDA would invite tenders for empanelment of licensed architects and document auditors by this month end. 

Speaking to Express, HMDA Metropolitan Commissioner, Neerabh Kumar Prasad said that under the Green Channel facility, land owners, builders and developers will have the option to obtain expeditious approval of development permissions.

He said the Green Channel will enable applicants to obtain fast-track clearance for their development proposals from the HMDA in seven working days. The concept will be applicable initially to layout approvals. No additional fees will be charged by the HMDA, the applicants have to pay the required fees to the empanelled document auditors and architects.

He said that applications will be accepted at Citizen Facilitation Centre at the Head Office on the strength of recommendation of architect on technical matters and document auditors on land matters.

Scrutiny of applications will be based on the check list and to do vetting of both technical parameters and ownership aspects and inspection of site if necessary. Letters would be issued in seven days with a direction to pay short fall amounts (if any) and to complete mortgage formality in seven days.

 

BWSSB lays ground for tariff hike

Print PDF

The New Indian Express      20.11.2013

BWSSB lays ground for tariff hike

Water tariffs may go up any day now as the Bangalore Water Supply and Sewerage Board (BWSSB) on Monday prepared a report with justifications sought by the Chief Minister to allow a price hike. The BWSSB’s report, based on the need to shore up its finances, is likely to be placed before the Chief Minster soon.

According to sources, the BWSSB had held a board meeting on Monday to prepare the justification for revising the water tariff and had prepared a report to convince the CM on the need to revise waters tariffs.

According to the report, the BWSSB generated a monthly income of Rs 46-50 crore and its expenditure exceeded Rs 80 crore, which included monthly electricity charges of Rs 36 crore, establishment charges of Rs 10 crore, interest on various loans taken by the board and repayment of these loans in installments.

The water tariff was last revised in 2005 and since then, the power tariff was revised various times. Therefore, BWSSB faces a revenue deficit of Rs 30-35 crore. Unless the water tariff is revised at the earliest, the Board’s finances would be severely affected, officials said.

The BWSSB had requested the Chief Minister to allow it to revise the water tariff following which he sought a report justifying the hike.

 


Page 187 of 686