NMC gets Rs 30.98 crore as compensation for LBT

Nagpur:  As LBT has been abolished across the state, the Nagpur Municipal Corporation (NMC) will be given Rs 30.98 crore in the month of October by the state government to compensate the loss. The government orders have been issued. In fact, the state government has sanctioned Rs 419 crore as compensation payable in the month of October to all 25 municipal corporations across the state, due to abolition of LBT, and the sanctioned amount would be distributed to each municipal corporation in proportion to their losses.

While the NMC will get Rs 30.98 crore for October, it had already received on Aug 27, Rs 30.98 crore for the month of August, and it will be receiving Rs 30.98 crore for the month of September in 4-5 days. Though the NMC is regularly receiving the amount of compensation, there is a big difference between the amount received from the state government and the amount the NMC used to earlier generate through octroi.

According to NMC taxation committee chairman Girish Deshmukh, the amount received from the government (Rs 30.98 crore) is insufficient and putting the NMC into loss. It is because before abolition of LBT the NMC had received Rs 487 crore annually. The NMC’s yearly revenue roughly reaches about Rs 50 crore, and adding 10% yearly growth which is usually done, it reaches Rs 55 crore per month while only Rs 30.98 crore are received from government. Thus, the NMC is running in loss, he added.

However, hoping against hope, it is said that the Chief Minister is from Nagpur, so he will not allow injustice to take place in respect of NMC. Sources said, the state government has given Rs 100 crore for roads-construction, and it will similarly provide funds as and when needed for various schemes.