CHENNAI: Minister for Municipal Administration KN Nehru told the Assembly on Tuesday that Ramanathapuram and Perambalur municipalities might be upgraded to corporations. He said a decision in this regard will be taken after holding discussions with Chief Minister MK Stalin.
Three selection-grade municipalities, including Tiruchengode, Udumalaipettai and Palani, are to be upgraded to special-grade municipalities based on their annual income. Similarly, Nandivaram-Guduvancheri, Palladam and Rameswaram municipalities, which are currently categorised as first grade, will be upgraded to selection-grade. Five second-grade municipalities, including Mangadu and Kundrathur, are to be moved up to first-grade.
Considering factors such as rapid urbanisation, presence of historical and religious sites and public amenities, the state government has created 10 new corporations and 31 municipalities in the last four years, the minister said.
The government has also been working on merging rural and urban local bodies with nearby corporations, municipalities, and town panchayats to improve governance.
As many as 149 panchayats, 4 municipalities, and 5 town panchayats are in the process of being merged with 16 corporations. In addition, 146 panchayats and a town panchayat are added to 41 municipalities, while 28 panchayats have been merged into 25 panchayats.
On upgrading local bodies, he said in the last four years, 29 panchayats are being upgraded to 25 town panchayats, 7 town panchayats are being elevated to municipalities, and 22 panchayats, along with 6 town panchayats, are being merged to form 6 municipalities.
Once the merging and upgrading process is completed, the state will have 25 municipal corporations, including Greater Chennai Corporation, 146 municipalities, and 491 town panchayats in the state, Nehru noted.
When AIADMK MLA SP Velumani raised concerns about the increase in property tax last year stating it would burden the public with higher tax payments, Nehru hit back at the opposition party for attempting to raise the tax by 50-100% during their tenure but withdrawing the proposal due to elections.
He then explained that the increase was in line with the central government mandate to obtain grants under the 15th Finance Commission’s recommendations. The minister reiterated that while the property tax was increased by 6%, the hike did not apply to owners of properties with an area of 600 sq ft or less.