The Times of India 20.09.2010
State to have MRC soon
HYDERABAD: The state would soon have a Municipal Regulatory Commission (MRC) on the lines of the Energy Regulatory Commission (ERC) to fix various charges to be levied by the Urban Local Bodies (ULBs) for different municipal services.
Government sources said the MRC would impose taxes and charges in one form or the other on urban dwellers and also promote privatisation of civic services, apart from promoting competition, efficiency and economy in their activities. The MRC is being proposed under the new municipal law that will be enacted soon. There are 123 urban local bodies in the state.
The chairperson, either a sitting or retired judge of the High Court would act as the chief executive of the five-member MRC. In essence, the five-member MRC would be an independent body that would guide the economic affairs of urban local bodies.
The main functions of the new commission would be to determine separately for each ULB the rates for drinking water supply; charges for sewerage connection; charges for solid waste management and charges for any other services. It would also suggest avenues for participation of private sector in the provision of municipal services and ensure a fair deal to the citizens.
Importantly, the MRC would determine the quantum of user charges in each ULB in a way that the rates progressively reflect the cost of supply of municipal services and ensure that the interests of citizens are safeguarded. At the same time, the consumers would have to pay for availing of the municipal services in a reasonable manner based on the average cost of such services.
The MRC would also aid and advise the state government on any matter concerning the provision of municipal services in the state and formulation of policies in this regard. It would also collect and record information concerning the provision of municipal services in the state; collect and publish data and forecasts on the demand for, and the use of, municipal services; adjudicate upon disputes and differences between any municipal authority and any suppliers of municipal services in the public or private sector or refer such matters for arbitration. It would co-ordinate with all environmental regulatory agencies and evolve policies and procedures for appropriate environmental regulation of municipal services.
The draft legislation states that MRC should not have any "undue preference" for any ULB in fixing the user charges, but may differentiate between different municipalities considering factors like population, density of population, revenue generation, economic importance and actual conditions. However, the state government could subsidise the user charges to any consumer or class of consumers by paying compensation in the form of a grant to the ULB, as directed by the MRC.
