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This is an archive article published on May 28, 2015

Broke North Corpn searches all its pockets

As salaries become due once again and pensions remain pending for approximately a year, the corporation is looking at some grant-in-aid from the Delhi government.

Following meetings with the Delhi government to convince them that there is a fresh financial crisis looming over the North Delhi Municipal Corporation, the civic body has listed its various sources of income and the measures it has planned to increase collection of revenue from these sources.

As salaries become due once again and pensions remain pending for approximately a year, the corporation is looking at some grant-in-aid from the Delhi government so that the impending crisis can be avoided.

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North body commissioner P K Gupta informed the standing committee on Wednesday that while the Delhi government had agreed to provide some relief to the corporations, it had, at the same time, questioned the corporation on how it planned to sustain itself in the future.

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“We have drawn up a list of measures and are implementing them to make sure the corporation is not faced with such financial turmoil again. There is a revenue deficit of Rs 1,000 crore,” Gupta said.

These measures include:

Property tax: The category of houses in the North Delhi does not include many A and B category houses which draw the maximum tax amount. The commissioner stated that the Corporation has started the Unique Property Identification Code scheme to map properties in Delhi and bring more properties under the tax net of the corporation.

Conversion charges: This is likely to be doubled.

Advertising: A new clustering scheme is being introduced which will provide rights to concessionaires to locate and develop advertising spaces in each cluster.

Land and estate: A portal for e-auctioning of corporation properties has been developed and licencing and lease of these will begin from June 1.

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Regularisation: Passing of floor plans is expected to contribute to the civic body’s revenue. Although the cost is nominal, the sheer number of properties bring regularised is expected to help the corporation sail through its current crisis.

Tehbazaari: A nominal fee is collected from hawkers during the weekly markets. Councillors allege that this amount is not coming into the corporation treasury.

Besides these measures, the corporation is undergoing a “tight scrutiny of its expenditure” so that unplanned costs can be cut and revenue deficit can be reduced.

The corporation’s hospitals run at a cost of about Rs 500 crore a year bringing no revenue to the civic body. Its schools also lack funds.

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