In an effort to improve its financial position, Mayor of North Delhi Municipal Corporation (NMC) Ravinder Gupta has announced that the corporation will impose usage charges on telecom companies that use its roads, footpaths or streetlight poles within its jurisdiction.
This will apply to any other company that uses services of the municipal corporations. The proposal is yet to become policy though if implemented, the corporation is likely to generate revenue to the tune of Rs5,000 crore annually and the financial health of the both east and north corporations will be improved. Struggling for funds, and with no help from the Delhi Government, Gupta said that they are now trying to increase revenue by devising their own schemes.
“Such projects are already running in Pune, Bengaluru and Bhopal by their municipal corporations. If implemented, it will improve the financial condition of the corporation,” the Mayor said.
Gupta further informed that the corporation will provide the space for installation of at least four ATMs in each building in its headquarters. “By this, not only citizens would get services at their doorstep but the corporation will also earn approximately Rs140 crore of revenue per year,” he said.
The NDMC has been running in financial deficit of Rs1,000 crore. About two weeks ago, the NDMC had announced to implement the recommendations of the third Municipal Valuation Committee to increase revenue collection by re-categorising properties.
Some of these measures include bringing more property holders under its jurisdiction into the tax net, increasing conversion charges, increasing a new clustering policy for advertising and regularisation of floor plans in unauthorised colonies.
Despite the advisory of the Delhi Government, which restraints collection of taxes from unauthorised colonies, the agency had announced to conduct a survey for levying of tax. “The corporations are authorised to provide civic services in their areas. Apart from sanitation works, we provide health and primary education, maintain parks and street lights along with other essential services and hence, they we must be authorised for tax collection,” said MP Bhardwaj, Chairman of Standing Committee had said.
Apart from increasing revenue collection, the corporation has also been putting pressure on the Delhi Government to pay its due share of approximately Rs2,000 crore and to Delhi Development Authority to pay Rs590 crore. Gupta has even threatened that if the Delhi Government does not act fast, sanitation services would collapse and the common man would suffer.