Navigation

Vashi2Panvel.com: Navi Mumbai: February 2: The Navi Mumbai Municipal Corporation will net over Rs 200 crores as cess and property tax revenue for the first time ever, which will be nearly 35 per cent more than last year. MIDC roads will be redone in the next two years and Seawage Treatment Plants in the city would be upgraded to increase capacity and quality of treatment in three years. The treated water would be purified tyo potable grade that can be utilized for gardens and certain industries and will also reduce pollution of the creek waters where the city water is discharged. Madhukar Kokate, Municipal Commissioner, NMMC, the man behind all the impending changes, in an exclusive interview with Vashi2Panvel.com

NMMc is the only corporation collecting cess in lieu of octroi. Are you considering reverting to the octroi mode like in other corporations in the state?

Our experience has proved that NMMC’s decision to adopt the self-assessed cess system is good for the administration and the traders and manufactures. Thought the system is based on trust, NMMC’s cess revenue has resent from Rs. 18.22 crore in 1995-1996 to Rs. 94 crore in 2004-05 and is expected to cross Rs. 125 crore in the present financial year. The corporation crossed the Rs. 100 crore cess collection for the first time ever this year on January 21.

We have a large number of small unregistered traders for whom we have introduced amnesty scheme, which will net in additional cess this year.

About 10% of the small-scale industrialists, who had filed a case in the court challenging NMMC’s authority to collect taxes from the industries in MIDC zone, will also pay up as they court has acknowledged NMMC’s authority. All this could net a total over Rs. 130 crore in cess.

Further NMMC’s cess rate is the lowest at 0.5% on average, where as the average rate in other corporations is 3.5% even the cost of collecting cess is only 0.78% in NMMC while the cost of collecting octroi in other corporations is 3 to 10 %.

Looking at the success of the self-assessed cess exercise, there is no reason to revert to the octroi system, which has been done away with, due to its many faults and impediments.

Is the corporation not losing Rs. 600 crore annually in cess by charging on an average about seven times lesser than other corporation? It this benefit reaching the end consumers?

NMMC is charging Rs. 600 crore less from the traders and manufacturers and yet the corporation is self-sufficient. And though an ideal example of a welfare corporation, NMMC can charge higher cess rate if necessary, but we do not intend to do so.

However the cess benefit should be passed on to the end users by the traders and manufacturers, when they are recipients of relief from NMMC.

What are your achievements during your tenure in NMMC?

I took charge at NMMC on the eve of the elections and hence even last year’s budget was delayed by a couple of months.

Yet some major decisions have been made which will ensure the following:
a. The MIDC roads will be upgraded as never before in two years

b. NMMC area will be rendered free of open defecating, which presently, we have to admit is the biggest shame of the city, that was awarded the first prize of Rs. 50 lakhs in the State in the Sant Gadgebaba urban cleanliness campaign contest.

c. All the sewage Treatment plants in the city will be modernized and upgraded to better capacity and quality functioning. The water after treatment in these STPs will be purified to almost potable grades that can be used for gardening and some industrial uses. Further the pollution of the creek waters where the sewage is discharged will be significantly reduced

d. The final third phase of the Morbe Dam project too is nearing completion. The testing of the additional filtration plant for the water supply from Morbe has been completed and testing started from January 26. This year with this we will soon have 450 MLD water supply capacity.

What about the Property Tax revenue?

NMMC has already collected Rs. 83.87 crore till date this year in property tax as against Rs. 69 crore collected last year till this date with nearly Rs. 38 crore still due for collection, the property to cross Rs. 100 corers for the first time ever in NMMC.

The dues from CIDCO amount to Rs. 8.92 crore and MSEB Rs. 2.57 crore and there are no dues from the Central Government offices. Further the 10% small scale industrialist in MIDC who were not paying due to the court case have also been ordered to pay, which will increase the property tax revenue, this year. NMMC will not resort to 6 coercive measures to collect the PT dues, but will not hesitate to take such measures, if compelled to do so.

Who was responsible for the NMMC victory in the court case against the small scale industrialists in MIDC?

I will not term it as anyone’s victory or defeat. The court only clarified doubts about the authority of the local self-government body to collect taxes in the industrial zone. However NMMC legal advisor advocate Ram Apte, DMC (cess) Manik Munde and Property tax department incharge Prakash Kulkarni have done a great job in preparing the reply to the issue posed by the disputing industrialists. I have to acknowledge the role of the officials, employees, comparators, office bearers and the media in the success of the corporation during this eventful year. And with the same co-operation and support I am confident that the city will live up to its 21st century city status within the next two to three years.

Vishwarath Nair