The Times of India 19.03.2013
NMC gets stick for increasing mobile tower rent exorbitantly
NAGPUR: 'Greed is a vice' goes the adage, and the Nagpur Municipal Corporation (NMC) was reminded about it by the court.
Around 1,000 mobile towers are installed across the city. The NMC would earlier charge 1.10 lakh a year for one tower from the mobile service providers as ground rent and other taxes. Finding it to be a lucrative way to earn revenue, the civic administration revised the annual rent to 3 lakh.
The decision came as a rude shock for the service providers. "They (mobile phone companies) tried to negotiate with the civic body to lower the rent. But when it turned out to be an exercise in futility, they approached the court," said NMC standing committee chairman and senior BJP corporator Avinash Thakre.
"The court reprimanded the civic body and subsequently the price was brought down to 25,000 per annum," he informed.
Now, the state government has issued new rates for B-grade civic bodies like the NMC to charge only 25,000 per year from mobile service providers towards ground rent for towers.
Criticizing NMC outdoor advertising policy, Thakre said the civic officials should have been content with 1.10 lakh per tower as it was helping the NMC in generating revenue to the tune of 1.10 crore. But the greed to earn more has proved costly for the NMC, he said, adding that now NMC will get only 25 lakh.
Thakre pointed out that the NMC's outdoor advertising policy is not also feasible to attract takers (traders).
Town planning department's sectional engineer (NMC) Pandurang Shinde, however, justified the NMC's move to increase the ground rent. He said the civic body needs revenue for providing basic infrastructure, so the revision is justified.
According to him, the state government has not finalized the rent. "In fact, the government had invited suggestions and objections to its draft policy on mobile tower rents. The NMC had raised objection to charging such minimal rent," Shinde said.
Around 1,000 mobile towers are installed across the city. The NMC would earlier charge 1.10 lakh a year for one tower from the mobile service providers as ground rent and other taxes. Finding it to be a lucrative way to earn revenue, the civic administration revised the annual rent to 3 lakh.
The decision came as a rude shock for the service providers. "They (mobile phone companies) tried to negotiate with the civic body to lower the rent. But when it turned out to be an exercise in futility, they approached the court," said NMC standing committee chairman and senior BJP corporator Avinash Thakre.
"The court reprimanded the civic body and subsequently the price was brought down to 25,000 per annum," he informed.
Now, the state government has issued new rates for B-grade civic bodies like the NMC to charge only 25,000 per year from mobile service providers towards ground rent for towers.
Criticizing NMC outdoor advertising policy, Thakre said the civic officials should have been content with 1.10 lakh per tower as it was helping the NMC in generating revenue to the tune of 1.10 crore. But the greed to earn more has proved costly for the NMC, he said, adding that now NMC will get only 25 lakh.
Thakre pointed out that the NMC's outdoor advertising policy is not also feasible to attract takers (traders).
Town planning department's sectional engineer (NMC) Pandurang Shinde, however, justified the NMC's move to increase the ground rent. He said the civic body needs revenue for providing basic infrastructure, so the revision is justified.
According to him, the state government has not finalized the rent. "In fact, the government had invited suggestions and objections to its draft policy on mobile tower rents. The NMC had raised objection to charging such minimal rent," Shinde said.
