SDMC approves tender for toll collection from vehicles
NEW DELHI: The Standing Committee of South Delhi Municipal Corporation (SDMC) on Thursday gave its approval to a tender for collection of toll tax from the vehicles entering the national Capital from its 124 entry points for a period of five years.
A senior official of the Corporation said that in all six companies, who submitted their tenders, out of whom the best offer amounting to Rs 1206 crore of M/S MEP infrastructures Ltd, has been approved.
"The party has, in other words given a guarantee of Rs 23 crore weekly, even if the collection is less than the assured amount," the official told Millennium Post.
The duration of the contract is five years, though the company will be free to surrender after a minimum period of one year.
"25 per cent of performance security deposit will be forfeited in case of surrender and the rest amount will be released after 90 days. The amount received as toll tax will be distributed in the ratio of
1: 1 and 0.6 between the SDMC, North and East Municipal Corporation," the official said.
"The SDMC will be getting an annual amount of Rs. 478 crore, which is almost double the amount being received in the earlier contract of three year duration.
"The selected company will also collect the ECC from the vehicles entering Delhi. However, the entire collected amount will be transferred to the city Government," the official added.