₹1,298.38 crore collected as green cess from vehicles entering Delhi

A senior municipal official from the SDMC’s finance department, the nodal agency for toll and ECC collection, said that corporations are only expected to collect this green cess along with the toll tax, and the amount is deposited with the Delhi government for utilisation in environment-related projects.

Delhi municipal corporations have collected over ₹1298.38 crore in the form of green tax-- environmental compensation cess (ECC) from commercial vehicles entering the city through 124 border points--from October 2015 to December 2021, a government report shows.

The green tax was imposed in accordance with the orders of Supreme Court six years ago and the ECC fund was created in a bid to check high pollution levels in Delhi. The court had imposed the additional tax on commercial vehicles entering the Capital in October 2015. (Representative image/HT Archive)

It goes on to add that, so far, ₹281.51 crore have been utilised in five projects, leaving over ₹1,016 crore worth of funds unspent.

The green tax was imposed in accordance with the orders of Supreme Court six years ago and the ECC fund was created in a bid to check high pollution levels in Delhi. The court had imposed the additional tax on commercial vehicles entering the Capital in October 2015.

According to the ECC fund utilisation report dated January 4, 2022, put together by the environment department, ₹265 crore were used to pay NCRTC (National Capital Region Transport Corporation) for the Delhi-Meerut Regional Rapid Transit System in March 2019. The ECC fund was also used to pay ₹15 crore to Indian Oil Corporation for the H-CNG project, of which the first instalment of ₹6 crore was released in March 2019 and the second instalment of ₹9 crore in August 2020.

The green cess payment was used by the district magistrate (Central district) to deploy a traffic marshal on the non-motorised vehicle lane (NMV lane) on SPM Marg as per the request of Shahajahanabad Redevelopment Corporation ( ₹43 lakh), the improvement and maintenance of this lane by the Public Works Department ( ₹15 lakh) and for pre-tendering costs of the RFID digital toll collection system ( ₹93 lakh) by the South Delhi Municipal Corporation (SDMC).

A senior municipal official from the SDMC’s finance department, the nodal agency for toll and ECC collection, said that corporations are only expected to collect this green cess along with the toll tax, and the amount is deposited with the Delhi government for utilisation in environment-related projects.

Mayor of the east corporation Shyam Sunder Aggarwal said that corporations are facing a financial crunch and the ECC funds should be allocated for projects which lead to dust control measures and pollution control. “The Delhi government should allow us to use ECC funds for at least environment-related projects. This is a fund meant for the improvement of the city. We are also carrying out a large number of projects like mechanical sweeping of PWD roads, water sprinkling and measures, which help control air pollution levels during winters,” Aggarwal said. Officials from the other two civic bodies echoed his concern.

On March 1, the financially strained EDMC sought ₹259 crore from the ministry of housing and urban affairs for various development schemes including the repair of roads to mitigate dust pollution, to pave of rough roads with interlocking tiles, install efficient street lights, procure equipment for the maintenance of parks, etc. On February 28, SDMC had cleared urban development projects worth ₹81.7 crore to fight dust sources and manage city waste. In October last year, the south corporation had reported that a shortage of drivers was affecting its anti-pollution measures with 40 out of 150 posts for drivers for pollution control vehicles lying vacant. The corporation had cited financial crisis and insufficient funds behind the shortage.

A spokeserson from the environment ministry did not comment on the matter.