LBT figures reflect positive trend in automotive sector

PCMC, the municipal body that caters to the twin industrial towns, registered a 10 per cent growth in LBT, coinciding with 2 per cent growth in the automotive sector registered by Society of Indian Automobile Manufactures (SIAM) earlier this month.

Records from LBT departments of PCMC show that against the target of Rs 900 crore, the first half of the fiscal raked in Rs 555 crore for the department, marking a Rs 25 crore average increase in collection as compared to last year.

The last six months have been positive for the department, with collections climbing 10 per cent.

Last fiscal, collection was Rs 850 crore, a shortfall of Rs 306 from what octroi had been contributing to the civic body. Octroi has since been replaced by LBT.

Senior officers of the LBT department say rise in LBT collection is a reflection of positive sentiments in the industrial zone of the area.
With more than 75 per cent of industries in PCMC related to the automobile sector, the de-growth had an impact on LBT.

SIAM reported that in March 2013, sale of vehicles had fallen by 7.76 per cent.

The sector has been witnessing a de-growth for the last few years, which has had an effect on ancillary industries, too.

Officers of the department said LBT collection was hampered by protests in the first half of 2013 with traders going on strike. For the cash-rich corporation, octroi was a major revenue earner. The industrial belt had helped the corporation rank as one of the richest.

The auto sector witnessed a positive growth in the last six months, which industry watchers attribute to positive sentiments. Senior managers of an automobile giant said although the industry would require some more time to get back to growth rates of 2010, the current financial quarter has shown results reminiscent of the earlier growth.