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Under duress, BMC allows 50% manual tender system for civil works

Tuesday, 10 September 2013 04:48 administrator
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The Indian Express              10.09.2013

Under duress, BMC allows 50% manual tender system for civil works

Under severe pressure from corporators to scrap the e-tendering process for Civil Works Contracts (CWCs), the Brihanmumbai Municipal Corporation has now decided to restrict it to only 50 per cent of the total for such contracts.

CWCs pertain to petty works (not more than Rs 5 lakh) like minor road construction and de-silting at the ward-level. Corporators using their individual development fund (Rs 60 lakh each) and the ward committee fund (Rs 40 lakh) sanction these contracts.

Last year, to bring transparency to a system said to be mired in corruption, Municipal Commissioner Sitaram Kunte mandated the e-tendering system. However, corporators opposed it saying technical glitches in the system were causing delays in the tendering process.

In June, corporators unanimously voted against the e-tendering system. This was followed by a letters from Mayor Sunil Prabhu to the civic administration demanding the same.

Kunte said, "We were keen to keep the e-tendering system but when the entire body of elected representatives passes a resolution demanding otherwise, we cannot ignore it." Kunte had until last month refused to give in to the "way of contractors".

A civic official said, "We have allowed the earlier method of manual tendering for 50 per cent of the works. This is not restricted to any particular type of works. It should considerably speed up the process of clearing the backlog."

However, corporators are still not happy. Sheetal Mhatre, a standing committee member and a Congress corporator, had last week reiterated the demand for scrapping the system to the standing committee. "Why has the BMC allowed this system? The e-tendering system must be completely stopped as it was a total failure last year. We should go back to the old system," Mhatre said.

Standing Committee chairman Rahul Shewale agreed to the demand. "Wherever the e-tendering system fails to get the expected response from contractors, the BMC must make sure that an alternative system is in place," he said.

In 2012, chief accountant Ram Dhas had written to the civic chief and additional municipal commissioners about malpractice in the old CWC tendering system.  

 

4,500 traders fined for late LBT payment

Thursday, 05 September 2013 10:47 administrator
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The Times of India              05.09.2013

4,500 traders fined for late LBT payment

PUNE: The local body tax (LBT) department of the Pune Municipal Corporation (PMC) has collected Rs 65 lakh as penalty for late payment of tax dues from as many as 4,500 traders in the city.

"The civic body had given an extension to the traders and had asked them to register for LBT by June 20. Some traders did not register within the stipulated period, whereas some registered but did not pay the tax in time, attracting penalty," said Vilas Kanade, head of the LBT department.

He said the traders are supposed to pay LBT for a particular month by the 20th of the next month, failing which they will have to pay a penalty. The penalty amount is calculated at the rate of two per cent of the total LBT charges payable by the trader.

Kanade said the PMC received around Rs 109 crore from LBT for the month of July. Octroi, a key revenue source for the civic body, was replaced with the LBT on April 1. Octroi generated daily revenue of Rs 3 crore and revenue of up to Rs 100 crore a month. In 2012-13, the civic body had registered revenue of Rs 1,200 crore from octroi.

Officials working in the LBT department of the PMC said awareness about LBT is increasing and the officials expect better response from the traders with regard to its payment.

Over 69,000 traders in the city have registered for LBT, so far. Traders related to industries, liquor shops and oil companies have already paid their taxes. Payments have been made through demand drafts, cash, cheques and internet banking.

The civic administration had generated Rs 40 crore from the LBT collection for April. Nearly 4,500 traders paid the tax that month. After May, the PMC has been generating around Rs 70 crore from LBT collection every month, where around 14,000 traders have been paying the tax.

Apart from collecting LBT directly from traders, the civic body also gets revenue from other allied LBT income sources such as vehicle escort charges and the LBT from the state government's revenue department on the sale of revenue stamps. The average income of all these sources totals to around Rs 100 crore per month.

 

NMMC to target illegal fest banners

Thursday, 05 September 2013 10:45 administrator
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The Times of India              05.09.2013

NMMC to target illegal fest banners

NAVI MUMBAI: The Navi Mumbai Municipal Corporation (NMMC) encroachment department has warned of stern action against any banners and posters put up without permission during Ganesh festival. Local corporators and political activists put up such banners to greet the public during festivals. But recently the Mumbai high court had come down heavily on such banners. According to Aziz Sheik, deputy municipal commissioner, in-charge, encroachment department, organizers must take prior permission from NMMC to put up banners or else they will be removed.

Permission to celebrate Ganesh festival is issued on paying a nominal fee of Rs101 to the NMMC. But it does not include permission for displaying banners and posters at public places.

 
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