No decision yet on octroi abolition

VADODARA, Aug 12: Though the State Government was examining problems faced by other states where octroi had been abolished, it had yet no...

VADODARA, Aug 12: Though the State Government was examining problems faced by other states where octroi had been abolished, it had yet not taken a decision on abolishing the revenue source, said Urban Development and Energy Minister Kaushik Patel on Wednesday.

Patel, who was here to inaugurate a Vadodara Municipal Corporation garden on R C Dutt Road, said the abolition of octroi was still at a discussion stage.“The State Government wants to set up a simple structure,” Patel said, adding that the fourth meeting of the committee formed under the chairmanship of Finance Minister Vajubhai Vala would be held on Friday. The meetings will discuss alternative structures that could be introduced after abolition of octroi.

About the much publicised Mayor-in-Council system, Patel said it would take time. Claiming that the State Government intended to develop a full-proof system after studying the drawbacks of the system in South India and Nagpur, the Minister further said the aim was to develop a system that would empower the Mayor and benefit the municipal commissioner.

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He evaded a question on whether the MIC was delayed as some senior IAS officers objected to civic chiefs being stripped of powers. Patel said the Government would soon seek a report of the committee formed at the chief secretary-level to further the matter.

Asked whether the system would be introduced only after next civic elections, as there wasn’t much time till the polls, Patel said the MIC could be introduced at any moment. “The delay is only because the State Government wants to introduce a proper system,” he claimed, adding that the earlier report had suggested a two-and-half year tenure for the Mayor. The Minister said the State Government has decided in principle to set up a tariff commission as per a Central ordinance. The announcement has been already made in the State Assembly, he added.

Patel ruled out the possibility of hike in power tarrif in the “near future” stating that Chief Minister Keshubhai Patel had said at least three times there was no such move in the offing.

Expressing appreciation of the Gujarat Electricity Board restoration of installations damaged in the cyclone, Patel said they would soon ask the State Government to release the GEB’s damage claims.

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The Board suffered an estimated loss of Rs 561 crore, Patel said, adding that restoration work had been completed in 90 per cent of the affected areas in just over a month.