BMC demands Rs 8 crore Octroi compensation

Published: 28th August 2013 11:01 AM  |   Last Updated: 28th August 2013 11:01 AM   |  A+A-

The Bhubaneswar Municipal Corporation (BMC) has submitted a proposal to the State Government for increasing its octroi compensation grant to ` eight crore. 

The octroi compensation provided by the Government is one of the major revenue sources for BMC.

Currently, the BMC is receiving Rs 4.10 crore per month as octroi compensation from the Government while Cuttack is receiving Rs 4.16 crore.

The BMC has been requesting the Government to hike its octroi compensation for quite some time. The increasing population and the city limits mean a greater expenditure for the corporation. In a letter to Housing and urban Development (H&UD) Department, BMC Commissioner Sanjib Mishra pointed out that despite rising population and increased responsibilities, their octroi compensation has not been revised for a long time.

BMC Mayor AN Jena said it is becoming difficult for the corporation to provide civic amenities with a limited budget. Since Bhubaneswar has more population than Cuttack and its business is growing steadily, hike in the octroi compensation is a necessity, he added.

BMC has undertaken new schemes like development of Unit I market at a cost of Rs 75 crore, slaughter house at Rs five crore and solid waste management activity at Rs 31 crore. But, most of the projects are being undertaken in the public private partnership (PPP) mode as BMC does not have adequate funds.Mishra stated in the letter that unless a special package is extended to the corporation, it will be difficult for BMC to even address day-to-day requirements of the city.

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