Date:11/02/2005 URL: http://www.thehindu.com/2005/02/11/stories/2005021116500300.htm

Karnataka - Bangalore

Officials at a loss on revenue mobilisation

By Afshan Yasmeen

BANGALORE, FEB. 10. The Mayor, R. Narayanaswamy, having announced that the pay and park scheme will be scrapped from April 1 and the Chief Minister, N. Dharam Singh, having approved it, officials of the Bangalore Mahanagara Palike are worried about finding alternatives to make up for the loss of revenue.

The officials are said to have expressed their concern during the ongoing deliberations on the BMP budget for 2005-2006. Apparently, they are confused under what head the Rs. 5-crore revenue could be recovered. Besides, the BMP has to return the earnest money deposit and the tender amount of Rs. 5 crores collected from the contractors soon after the contracts were awarded.

Unlike in the past, this time the BMP had collected the tender amount when the parking agreement was signed.

This was done because the BMP realised that the contractors were not prompt in paying the BMP's dues every month.

Sources in the BMP told The Hindu that in the present situation, wherein the Government has cut grants to the corporation by over Rs. 60 crores annually, it will be difficult for the civic body to repay the contractors' amount.

"The total amount to be repaid to the contractors, including the tender amount, is over Rs 10 crores. We don't know how this will be done because in an organisation such as the BMP, we sometimes need to divert available funds for other purposes," a senior official pointed out.

The BMP Commissioner, K. Jothiramalingam, had admitted that the BMP was facing a financial crunch after the grants were cut.

In fact, Mr. Jothiramalingam had even suggested that a delegation from the BMP could meet the Chief Minister and request him to continue the grants.

Pole ads

Sources in the BMP Council revealed that there is a "hidden agenda" behind the scrapping of the pay and park scheme. "There is a move to revoke the ban on pole ads in the city. The previous council had imposed the ban in 1998. There is a proposal to ask the advertisers to maintain parking lots on streets where they are allowed to advertise," the sources said.

"If this is done, it will be a mess. Further, the BMP will lose control over the advertisers. We admire the Mayor for taking a bold decision. But we don't know how feasible it is," the sources said.

The BMP is also confused about how to manage its multi-storeyed parking lots.

"These complexes have been constructed in joint venture with private builders. To allow free parking in these complexes, the BMP will have to repay the amount spent by the builders on the construction. If parking fee is collected, there will not be many takers because nobody will be interested in parking for a fee inside the complex when he can park freely outside," the sources added.