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Mohali MC set for revenue boost; 50% share of extension fee from GMADA approved
In a significant decision, 50 per cent of the extension fee collected on vacant plots will now be transferred to the civic body by the Greater Mohali Area Development Authority (GMADA), strengthening the corporation’s financial position.
Recently, several areas under GMADA’s jurisdiction were incorporated into the Municipal Corporation limits. (Express File Photo)
Thousands of vacant plots across the city are poised to become a major revenue source for the Mohali Municipal Corporation. In a significant decision, 50 per cent of the extension fee collected on vacant plots will now be transferred to the civic body by the Greater Mohali Area Development Authority (GMADA), strengthening the corporation’s financial position.
Extension fee has been collected from owners of vacant plots since 2008. Until now, the entire amount was retained by GMADA. However, following a recent high-level meeting between GMADA and Municipal Corporation officials, attended by the Punjab Housing Minister, it was decided that half of the collected fee would be shared with the civic body.
During the meeting, detailed discussions were held regarding the large number of unconstructed plots in the city and the revenue generated through extension charges. Officials believe that the decision will provide much-needed funds for development works.
Mohali has thousands of plots where construction has yet to begin. The revenue generated from these plots will now be channelled toward improving city infrastructure, including roads, sanitation services, street lighting and other essential civic amenities.
Corporation officials say the move is expected to enhance financial resources and accelerate pending development projects. A noticeable rise in municipal income is anticipated in the coming months.
MC budget meeting this week; 25% share from GMADA proposed
In another key development, the MC’s crucial budget meeting is scheduled for this week. The proposed budget for the new financial year will be presented, with officials preparing to seek 25 per cent of the total budget allocation from GMADA.
Recently, several areas under GMADA’s jurisdiction were incorporated into the Municipal Corporation limits. These newly added localities have long been facing shortages of basic amenities. Major funds are required to upgrade roads, sewerage systems, street lighting, drinking water supply and sanitation services.
Mayor Jeeti Sidhu made it clear that without adequate financial rights and a fair share of funds, accelerating development work would remain difficult. He stated, “Until the corporation receives its rightful financial share, it will be challenging to give momentum to development projects. Agencies that collected revenue from these areas must also ensure basic facilities there.”
According to municipal sources, the issue of securing a 25 per cent share from GMADA will be raised during the budget meeting. If approved, development in the newly merged areas is expected to begin at a faster pace, giving fresh direction to Mohali’s overall growth.
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