The municipal corporations have decided to scrap the jumbo-sized Factory licensing Department after it failed to achieve even less than one per cent revenue target in the current fiscal. While there are over 1.5 lakh factories in the capital, this department which fetches over Rs10.4 crore on salary could obtain only Rs1.62 crore as against the set target of Rs2,100 crore for the financial year 2014-15.
The decision was taken after giving a final chance to the department which had collected only Rs1,000 as tax in 2013-14. According to the existing Act, no person shall, without the previous permission in writing of the Commissioner, establish any factory workshop or trade premises.
The commissioner may also refuse to give permission, if he is of the opinion that the establishment, alteration, enlargement or extension of such factory, workshop, or trade premises in the propose passion would be objectionable by reason of the density of the population in the neighborhood or would be nuisance to the inhabitants of the neighborhood.
Meanwhile, claiming that they have not been achieving revenue target since decades, North and South Corporation on Tuesday approved the abolition of provision of Factory licensing under Section 416 of amended DMC Act, 1957. They accepted that the department has become a den of corruption also.
“The department has failed to achieve the target even after spending crores of rupees on salaries and other allowances. There were complaints of corruption in this department and the move will provide relief to the factory owners and traders. There are over 1.5 lakh industries in the city but the department has been collecting license fee from only 4,500 units,” said MP Bhardwaj, Chairman of Standing Committee of North MCD.
The officials of all three Corporations said that the Industry Department of the Delhi Government also collects revenue for issuing licences which creates hindrances between in the planned industrialisation in the city.
“As the department collects less than 1 per cent revenue, it will have little effect on the finances of the MCDs but it will give relief to sizeable number of factory owners,” said a senior official. The South Corporation too hailed the move claiming that it would be a breather for Delhiites.
“We have approved the decision which will be passed in next meeting of the House. Once approved by the House, the same will be forwarded to the state government for the final nod. If things go well, it will be implemented in the region,” said Radhey Shyam Sharma, Chairman of Standing Committee of South MCD. The EDMC also claimed to pass the proposal in next meeting of Standing Committee which is scheduled on Thursday.