SDMC gets new contractor for toll tax collection

The Municipal Corporation has got a new contractor, a private concessionaire, for toll tax collection, this time for a higher amount. According to the South Delhi Municipal Corporation, the nodal agency for collecting toll taxes, the new contractor has been appointed at the minimum reserve price of Rs 488 crore for a period of total nine months.

“The contract has been given for a period of nine months at Rs 488 crores. This means that the weekly amount given to MCD would be around Rs 13.5 crore which is higher than what we used to get from the previous contractor. Till now, the SDMC used to get Rs11 crore per week from toll tax collection,” said Radhe Shyam Sharma, Chairman of Standing Committee, SDMC.

Last year, the tender was given to SMYR consortium on a yearly amount of Rs 551 crore. The court had finalised January 31 as the last for the present agency to collect taxes. “We were getting competitive rates from the bidders and there were options in our hand. So we opted for the one which offered us the highest rate. According to the court directions, the last date for SMYR consortium to collect taxes was January 31 and we had started floating the tenders in a bid to get a new contractor for toll tax collection,” said Radhe Shyam Sharma, Chairman Standing Committee SDMC.

While the present contract is for a period of nine months, officials say that the court has directed the MCD to develop a technique where the human force is not needed to collect taxes. A chip system would come into place through which the money would be automatically deducted by flashing cards. “We will have to develop a system where we don’t need a contractor or any human force to collect taxes. Everything will be automatic,” Sharma added.

In the first week of January, the Supreme Court had allowed the previous contractor, SMYR Consortium, to exit its contract with the Municipal Corporations in Delhi. 

During the court hearing, the Consortium said the imposition of the ECC and the subsequent 100 per cent hike on it had resulted in nearly 35 per cent fall in the vehicles entering the national Capital and had adversely impacted its toll collection and business interest. The Apex Court, on October 9, 2015, had imposed ECC of Rs 700 on light commercial vehicles with two axles and of Rs 1,300 on commercial vehicles with three and four axles. Then by its December 16 order, it had doubled the ECC to be levied on commercial vehicles entering Delhi.

Prior to the imposition and subsequent increase of the ECC, the SDMC used to get Rs 11 crore per week from toll tax collection, but after imposition of green tax, the contractor submitted Rs 7.30 crore. This took place when the toll tax collector suffered a reduction in the toll collection by 30 per cent as the entry of commercial vehicles had reduced by 20 per cent. 

Ever since the green tax has been imposed, vehicles have been seen opting for a different route traversing through Haryana and UP thereby, avoiding entry into the Capital in a bid to avoid payment of taxes.