Lockdown puts breaks in KMC coffer, loses revenue worth Rs 50 cr so far

Kolkata: The nationwide lockdown has hit the revenue earning of Kolkata Municipal Corporation (KMC). It has lost revenue to the tune of at least Rs 50 crore so far for failing to collect sanction fees from issuing plans for new buildings.

The KMC in 2018- 19 had collected Rs 120 crore by issuing sanctioned plans. The amount is falling fast as the trend to set up new houses in Kolkata proper has become nearly saturated. At a time when the revenue collection through sanction fees is falling, the lockdown has caused a further dent in KMC's coffer.

No meeting of the Municipal Building Committee (MBC) has been held since March 24. The plans to set up buildings on land above 500 meters or those that are non-residential are sent to the MBC for clearance. MBC consists of the director-general (building) of KMC, a representative of the traffic department of Kolkata Police, a representative of the Fire and Emergency Services department and a representative of the association of architects. As a result, no plan could be cleared causing a sharp fall in revenue. Senior civic officials said if the lockdown continues then the proposal to hold a meeting of the MBC in zoom needs to be considered.

The KMC had taken an initiative allowing owners of old buildings to pull down the old structures to make rooms for new ones after rehabilitating the tenants. This project had kick-started well but has received a major blow because of the lockdown."We really do not know when this will become normal and construction of buildings will resume in Kolkata," said senior civic officials.