Nagpur: The Nagpur Municipal Corporation (NMC) is going to receive a grant of 49.29 crore from the state government as compensation for the LBT. This grant is felt to be insufficient and the civic authorities had expected the amount to increase by 18.31 crore. Earlier the grant was 30.99 crore. The letter received by the NMC from the town planning department has created ripples of happiness in the civic circles
According to sources, the NMC will get 49.29 crore as grant by the beginning of the next year. The NMC is unable to meet its monthly expenses out of the grant it receives from the state government. the increased grant can add a much needed boost to the finances of the civic body.
It may be noted that the state government had decided to abolish LBT from 25 civic bodies on August 1 2015. the NMC had expected that it would receive a compensation of 54 crore as compensation for the LBT. But it was getting just 31 crore and the date of providing grant is also not fixed. The ruling Nagpur Vikas Aghadi has time and again asked chief minister Devendra Fadnavis to increase the amount of grant to the NMC.
The NMC had suffered a loss of 55 crore when LBT on diesel and petrol was scrapped and the NMC had to further bear the loss of 5 crore on oil. Despite the grant received in lieu of LBT, the NMC is suffering a loss of 150 crore a year and 60 crore due to the scrapping of LBT on petrol and diesel. Now there is the likelihood of the civic body getting the grants of 600 crore from the state government. If the NMC is able to secure the grants of 600 crore, the development activities within the city can get a real boost.