MBMC8217;s octroi collection plan flops

For private collection agents, the council had set a target of Rs 20.70 crore for the current financial year. In the terms and conditions, the council had asked prospective agents to pay Rs 1 crore in cash at the time of submitting tender forms. In addition, the contractors were supposed to to furnish a Rs 3-crore bank guarantee a few days after their appointment.

Attributing the poor response to the tight money market, Patil told Express Newsline: 8220;Private contractors don8217;t seem to be willing to lock up such a huge amount for one year.8221; Councillors, however, said the terms and conditions weretoo stringent and the guarantee amount too high.

There are 16 octroi collection posts in the MBMC limits. Revenue worth Rs 16 crore is collected by way of octroi annually. This forms a major chunk of the council8217;s earnings. This year the council had blamed poor octroi collection for the deficit in the budget. The ambitious Rs 20.70-crore target set for private parties was an attempt to wipe out the deficit. In 1994 a similar experiment with employing private agents to collect octroi had failed. Then, it was opposed by traders and industrialists who opposed it alleging harassment by collection agents. Arun Kadam, vice-president of the council said the current situation had caused concern among officials. The council may extend the last date for buying and submitting tender forms so as to give sufficient time for private parties to come forward, he added.