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Municipal Finance

Rs. 5 crore withdrawn as Kolar CMC fails to utilise funds

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The Hindu    31.08.2012

Rs. 5 crore withdrawn as Kolar CMC fails to utilise funds

Staff Correspondent

Eight other urban local bodies also lose funds

The State government has decided to withdraw several crores of rupees from a number of urban local bodies in view of the failure of town municipal councils and city municipal councils to utilise the funds granted for development activities.

The Urban Development Ministry has allocated partial amount of the withdrawn funds to other local bodies. The secretary of the department has written in this connection to the Commissioner of Directorate of Municipal Administration.

Among the nine urban local bodies, Kolar City Municipal Council (CMC) stands at the top in losing funds. Of the Rs. 10.64 crore unutilised by the municipal council in Kolar, the government has withdrawn Rs. 5 crore.

Originally the grants were made to the urban local bodies under the Chief Minister’s Small and Medium Towns Development Programme.

The following are the unutilised funds and the amount withdrawn by the government from urban local bodies in nine districts (amount withdrawn is in bracket): Mandya Rs. 5.37 crore (Rs. 2 crore), Udupi Rs. 6.51 crore (Rs. 2.5 crore), Gadag Rs. 7.66 crore (Rs. 3 crore), Shimoga Rs. 6.73 crore (Rs. 3 crore), Bidar Rs. 8.64 crore (Rs. 3.5 crore), Yadgir Rs. 4.70 crore (Rs. 1.11 crore), Chamarajnagar Rs. 6.97 crore (Rs. 2.5 crore), Koppal Rs. 3.93 crore (Rs. 50 lakh) and Kolar Rs. 10.64 crore (Rs. 5 crore).

Beneficiaries

Of the Rs. 23.11 crore withdrawn, Rs. 18.61 crore has been re-allocated to these urban local bodies: Rabakavi-Banahatti Rs. 1.66 crore, Badami Rs. 1.88 crore, Bilagi Rs. 1.60 crore, Guledgud Rs. 66 lakh, Ilkal Rs. 1.66 crore, Jamkhandi Rs. 1.66 crore, Kerur Rs. 66 lakh, Mahalingapur Rs. 1.06 crore, Bantwal Rs. 1.66 crore, Kadur Rs. 1.66 crore, Birur Rs. 66 lakh, Tarikere Rs. 1.66 crore and Chikmagalur Rs. 2 crore.

Lacking coordination

Lack of coordination between MP and Minister of State for Railways K.H. Muniyappa and district in-charge Minister Varthur Prakash, who are vying with each other to control the municipal council, is said to be the main reason for the failure of the local government to utilise the funds for the development of the city which suffers without infrastructure.

The political rivalry between Mr. Muniyappa and Mr. Prakash, coupled with the lack of vision among councillors who were allegedly primarily interested in amassing wealth out of public exchequer, has left the city in the lurch.

Though the authorities did not mention the role of “politics” for the prevailing situation, they admitted that was lack of leadership vis-à-vis development of the area.

“Delay in carrying out works as well as unscientific approach in plans and estimations are some of the reasons why the funds were not utilised in the stipulated time,” municipal commissioner M. Mahendrakumar told The Hindu on Thursday. “Quality of work carried out also contributed to the factor,” he added.

Last Updated on Friday, 31 August 2012 05:06
 

Nashik Municipal Corporation records 35% growth in octroi collection

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The Times of India    24.08.2012

Nashik Municipal Corporation records 35% growth in octroi collection

NASHIK: The Nashik Municipal Corporation (NMC), which took over the collection of octroi from a private contractor on May 19, recorded a growth of 35% in three months as compared to 2011.

On April 13, the general body had decided that the NMC take over octroi collection which was in private hands for two years. Accordingly, the NMC took charge of the octroi posts on May 19, when the erstwhile contract expired. The general body on April 13 had decided that the octroi collection that was in private hands for two years would be taken over by the NMC after the contract of the agency got over on May 18. Accordingly, the NMC trained its staff and took over the octroi posts on May 18.

Last year, the NMC's octroi collection was Rs 135 crores in the first three months. This year, the collection during the same period is Rs 183 crores. "We have collected Rs 28.5 crore more this quarter as compared to last year. This is 35% rise in the octroi collection. There should be, as per the rules, 15% growth from the previous year," said deputy commissioner of the NMC's octroi department, Haribhau Phadol. This growth has also exceeded the 25% rise as suggested by the municipal commissioner in his proposed budget.

"During the off season, we have been collecting Rs 2 crore octroi everyday. Also, there is industrial slack and we are not getting as much octroi from this sector as we should. We are certain that the total octroi collection would increase once the offseason is over," said Phadol.

In the municipal commissioner's proposed budget, a target of Rs 656 crores had been mentioned. According to the rules, it should be Rs 603 crores.

The deputy commissioner said that at this rate the NMC would cross a collection of Rs 700 crore.The collection of octroi had been privatised two years ago by the then Shiv Sena-BJP alliance that was ruling the NMC. When the Maharashtra Navnirman Sena wrested power in the civic elections held in February this year, it decided to end privatisation.

Last Updated on Friday, 24 August 2012 09:55
 

Kolkata Municipal Corporation pays Rs 18K for trident lights, sells at Rs 9600

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The Times of India    24.08.2012

Kolkata Municipal Corporation pays Rs 18K for trident lights, sells at Rs 9600

KOLKATA: Kolkata Municipal Corporation's move to beautify the city with trident lights has trigged a controversy yet again. The civic body had spent Rs 17,690 on the installation of every trident light. But it now wants to 'sell' the lights to Salt Lake, Nabadiganta and South Dum Dum municipalities for Rs 9,600 each.

The lights will be manufactured at the KMC workshop in Entally. Tarak Singh, the member, mayor-in-council, overseeing the KMC workshop recently wrote a letter to the state municipal affairs minister Firhad Hakim expressing the desire to supply trident lights at a much lower rate.

Singh has also written to the chairperson of the Trinamool-run Salt Lake Municipality asking whether it needed trident lights.

The move raised eyebrows at several quarters of the civic body. Officials wondered why the KMC lighting department had accepted the offer of paying Rs 17,690 when the Salt Lake Municipality had paid Rs 13, 594.

Former municipal auditor Manabendra Mukherjee had also objected to the way in which the decorative lights were installed across the city and doubted the project's financial viability.

"That is the reason why the civic top brass had overruled the tender committee and went for installation of the trident lights by inviting notice invite tender," a senior KMC official said.

Opposition leader Rupa Bagchi and Congress councillor Prakash Upadhyay were very dissatisfied with the project. Mayor Sovan Chatterjee on Thursday assured Bagchi and Upadhyay that the entire process (from awarding contract to installation) of the 'trident light controversy' will be taken up at the next mayor-in-council meeting.

Last Updated on Friday, 24 August 2012 09:34
 


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