High-profile events: GHMC left high and dry

Neither the Centre nor the State government has released a single penny so far for the various works

The Bio-diversity Summit and Metropolis – the two international summits coming up in two years -- are driving the Greater Hyderabad Municipal Corporation (GHMC) hopping mad, as the civic body is forced to finalise works to spruce up the twin cities by dipping into its own finances.

Neither the Centre nor the State government has released a single pie so far for various works proposed like improving roads leading to the convention centre at Madhapur, drains, signages, streetlighting, urban forestry, etc., though the municipal corporation has sought more than Rs.1,000 crore as grant.

PM apprised of issue

Chief Minister N. Kiran Kumar Reddy has brought the matter to the notice of Prime Minister Manmohan Singh too. “We need funds to be released urgently if the works have to be completed before the Bio-diversity meet in October. We are finalising tenders hoping that the money would come in the next few days,” say senior officials.

“We cannot do everything on our own. We need the Centre and State to assist us liberally,” remarks Mayor Majid Hussain. What is making senior officials disillusioned is that the State government has not even initiated measures to improve GHMC finances even after these were approved by Mr. Reddy himself last year.

Profession tax

The first issue is the collection of profession tax. Each year, the government has been granting a mere Rs.60 lakh when it was supposed to get 90 per cent of the tax. The Chief Minister had accepted the plea to allow the civic body to take up collection from the Commercial Taxes Department so that it would fetch at least Rs.300 crore.

He also accepted the proposal to allot 10 per cent of the annual road tax collected in the State capital which could garner another Rs.200 crore as it was getting just Rs.60 lakh.

The third issue is increasing the property tax amount of government buildings from the standard annual payment of about Rs.20 crore or less. The demand for increasing the amount to Rs.60-70 crore too was agreed.

Traffic offence fines

Senior municipal officials have also sought the money being collected as fines for traffic offences to be released for taking up traffic improvement related activities like the proposed Rs.63 crore Hyderabad Traffic Integrated Management System. Each year close to Rs. 35 crore is collected in Hyderabad and another Rs.12 crore in Cyberabad as fines.

The fine amount collected in Hyderabad, if released, could get the project moving and completed in two years. But, the wait has become eternal to get an official order issued.

“Decisions taken at the highest level too are not being implemented despite reminders. We need Rs.150 crore to begin with as soon as possible to deck up the city,” aver senior officials.