SDMC invites bids for collecting toll, green tax in capital

On January 8, the Supreme Court had allowed SMYR Consortium LLP to exit its contract with the municipal corporations.

Written by Naveed Iqbal | Delhi | Published:January 25, 2016 2:03 am
congress, South municipal corporation, BJP, SDMC, SDMC revenue, delhi news The concessionaire had sought an early exit from the contract citing losses on account of reduced traffic.

As the deadline given to the city’s municipal corporations by Delhi toll collector SMYR Consortium approaches, the South Delhi Municipal Corporation (SDMC) has issued fresh tenders to invite new bids to collect toll as well as environment tax at Delhi’s borders.

On January 8, the Supreme Court had allowed SMYR Consortium LLP to exit its contract with the municipal corporations.

The concessionaire had sought an early exit from the contract citing losses on account of reduced traffic entering Delhi after implementation of the Environment Compensation Charge, or ‘green tax’ as it is commonly called, in November 2015. It also quoted losses worth Rs 200 crore to the civic bodies.

The SC had asked the South corporation to put in place an alternate mechanism for toll and environment cess collection. As part of that process, a fresh tender has been issued by the SDMC, which is the lead corporation for tax collection in the capital. Officials said three companies have filed the bid to collect toll.
Sources have confirmed that SMYR consortium is also filing another bid after having exited the contract earlier this month citing losses.

The consortium was not getting a share of the ‘green tax’ collection, unlike in the case of toll. Six months into its three-year contract with the corporation, it refused to do the collection on SDMC’s behalf.

The SDMC stated that with the consortium exiting the contract, the corporation “will not return the yearly security deposit” it had paid at the beginning of its contract six months ago.

The consortium had signed a three-year contract with the MCD under which it was to pay the civic body Rs 1,543 crore over three years. A yearly security deposit was also fixed. According to the civic body, this amount was Rs 50 crore. The consortium, however, claims it paid Rs 80 crore as deposit.

The ‘green tax’ was to be implemented by November 1.

But due to delays by the concessionaire, despite insistence from the SDMC to implement the court orders, it started six days late. The consortium manages 124 toll booths for the civic bodies.

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