The Indian Express         31.10.2013

PCMC faces Rs 270-cr loss, but assures big projects won’t be hit

The abolition of octroi and introduction of local body tax (LBT) has
dealt a severe blow to the Pimpri-Chinchwad Municipal Corporation (PCMC)
in terms of revenue collection and its plans to implement development
projects. Compared to the six-month period of 2012 when octroi had
generated a revenue of Rs 580 crore, the first six months of financial
year 2013 have yielded Rs 448 crore from LBT — a shortfall of Rs 132
crore.

As the financial year progresses, PCMC fears it will face a loss
of Rs 270 crore. The deficient revenue may also hit the development
projects that the civic agency has planned for this financial year.
However, it is confident of reducing the gap by a slew of initiatives
aimed at generating revenue.

“Compared to last fiscal’s octroi collection, PCMC may face a
shortfall of Rs 270 crore,” Municipal Commissioner Shrikar Pardeshi
told Newsline on Wednesday. He said they have launched a drive to cover
property tax owners who have not been assessed till now. “The drive is
aimed at zeroing in on citizens who have escaped the property tax net.
We hope to get some revenue out of this,” he said.

The civic chief also said they are looking at generating more
revenue from building permissions. Importantly, he said, under LBT, PCMC
has not been able to cover all traders and shopkeepers. “We have
intensified our drive to bring under LBT those traders and shopkeepers
who have not registered themselves,” he said, adding that some more
measure are still under consideration.

Pardeshi said these measures will help PCMC reduce the revenue
shortfall by Rs 100 crore. “We have launched efforts to reduce the gap
and are hopeful of achieving our goal,” he said.

Significantly, he said big development projects — that have been
launched this year or a couple of years ago — would not suffer in terms
of funds. “This is because funds for the big projects have been
guaranteed either by the Central or state government. Even the World
Bank has provided assistance for the Rs 100-crore Nashik Phata flyover
project,” he said.

He, however, said some plans like carrying out renovations might suffer as PCMC will have to put a hold on them.

Shiv Sena leader Shirang Barne said since LBT has been
introduced this year, PCMC has faced problems in its collection. “As
PCMC gets maximum traders and shopkeepers under LBT net, the earnings
will be as good as the octroi. Though in the first six months Rs
132-crore shortfall has been experienced, in future this will become
lesser and lesser,” he said.

Barne also said when a Shiv Sena delegation met Chief Minister
Prithviraj Chavan recently, he expressed fear that PCMC may have to
return the funds received under JNNURM for the controversial Maval
closed pipeline project. “The CM said if the project remains stuck due
to farmers’ protest, PCMC will have to return the funds,” said Barne.
The project cost is nearly Rs 400 crore and the Centre’s share is around
50 per cent.

Meanwhile, civic officials said PCMC’s efforts towards the merger
of Hinjewadi, Chakan, Dehu Road and other surrounding areas will help
generate additional revenue. The proposal is under consideration of the
state government.

Officials said except Chakan, the chances of merger of other
areas cannot be ruled out as the development of these areas has been
affected.

‘Participate in citizens’ budget’

Citizen’s participation in PCMC’s budget-making process has
remained minimal despite efforts of the civic administration. The PCMC
has therefore again urged citizens to come forward and make their
suggestions to make it a participatory budget. In a bid to get more
response, the PCMC has extended the deadline of October 25 for accepting
suggestions on the participatory budget to November 3. Civic officials
said the aim of the participatory budget is to take up small plans
suggested by citizens. Towards this end, the PCMC had also some time ago
organised a workshop of citizens to guide them on submitting
suggestions. Officials said PCMC attaches importance to participatory
budget, but is not getting the kind of response it had been expecting.
“In the past, citizens did respond but the response was not
overwhelming. We hope this year, there will good response,” officials
said. Senior civic officials said the educated class should come forward
and make concrete suggestions. “Teachers and principals of schools and
even college students should come forward and give their suggestions.
Retired personnel and other working professionals are also expected to
chip in. Civic activists always make suggestions, but other citizens
show very little interest,” officials said.