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Premium and royalty for laying cables

In a bid to improve its source of income,the Pune Municipal Corporation has decided to collect royalty and premium from telecom companies and other public utilities for laying underground cables in its limits.

Written by Express News Service | Pune |
January 7, 2009 12:32:05 am

In a bid to improve its source of income,the Pune Municipal Corporation has decided to collect royalty and premium from telecom companies and other public utilities for laying underground cables in its limits. The civic standing committee approved the proposal put up by the civic administration on Tuesday. The charges will be as per the space utlised. The move is expected to add Rs 80 to Rs 100 crore to PMC’s treasury.

“At present we charge only for excavation in order to lay the cables. Now,this proposal will give us an authority to charge money from these utilities for using our space,” civic officials said.

As per the proposal,in order to lay cables through PVC ducts,Rs 3,600 per metre of annual premium,through RCC ducts Rs 4,500 per metre of annual premium will be charged to the companies. Where there are no ducts along the roads,the PMC is going to charge Rs 2,500 per metre of premium.

When contacted, standing committee chairman Shyam Deshpande said,“Even though the charges are yet to be fixed,the amount would be for per running meter.”

This will be applicable for a number of telecom companies like the BSNL as well as to the Maharashtra State Electricity Distribution Company Ltd (MSEDCL). Meanwhile,the standing committee deferred taking any decision on the proposed tax system for the city. The issue will now be discussed at a special meeting this month. In order to tide over the financial crisis that the PMC is currently facing as also to multiply its treasury,it has suggested an increase in various taxes on the annual rateable value of a property for the year 2009-10.

Among many other things,usage of water is likely to get dearer from the next financial year,due to the proposed hike in the water tax,water benefit tax and sanitation tax. Those possessing a four-wheeler might have to pay 10 per cent of road tax now from the present 5 per cent,which is currently collected also from those who do not possess a four-wheeler.

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