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MCG opens buildings for private ads, mobile towers

He maintained that since most terraces and rooftops lie vacant in all MCG buildings, officials realised its potential for erecting mobile towers. He further said the central government has recently given licences to numerous private companies for establishing electric vehicle recharge units.

india Updated: Apr 21, 2019 04:43 IST
Hindustan Times, Gurugram
MCG,joint commissioner offices),community centres
During the budget meeting in February, MCG officials had said poor collection of property tax, and stamp duty were the main reason for lesser collection. (HT FILE PHOT)

The Municipal Corporation of Gurugram (MCG) has formulated a policy as per which all civic body structures can now be used by private companies for establishing advertisement billboards, setting up electric vehicle charging stations and erecting mobile towers, officials said Saturday.

According to officials, all MCG offices (sub-divisional offices, joint commissioner offices), community centres, sewage treatment plants, water boosting stations, can be utilised by private firms for these purposes.

MCG commissioner Yashpal Yadav said the aim behind this move is to boost MCG’s revenue collection through leasing their structures. “These ventures will not affect day-to-day operations of the MCG in any capacity, and will only help boost MCG’s cash reserves. We have a lot of buildings across the city, and the policy has been introduced to utilise its potential for commercial tie-ups,” Yadav said.

He maintained that since most terraces and rooftops lie vacant in all MCG buildings, officials realised its potential for erecting mobile towers. He further said the central government has recently given licences to numerous private companies for establishing electric vehicle recharge units.

“Private companies are on the lookout for vacant spaces in centrally located parts of each city for setting up electric vehicle recharge units. Since the existing MCG buildings have a lot of vacant spaces next to them and are also located in central parts, it will be ideal for private companies to set up the facility. Hence, the policy has been accordingly constituted for incorporating this feature,” he said.

With the MCG garnering only ₹868.41 crore as receipts for the 2018-19 fiscal, — less than half of its previous fiscal collection of ₹1657.41 crore — the civic body has been looking at various modes to boost its revenue in 2019-2020 for which it has estimated a receipt of ₹2,605.13 crore.

During the budget meeting in February, MCG officials had said poor collection of property tax, and stamp duty were the main reason for lesser collection.

In the 2017-18 fiscal, MCG had collected ₹342.24 crore in property tax — the highest ever fiscal collection. In comparison, MCG was able to net only ₹196 crore through property tax in 2018-19.

The Haryana government had also deposited ₹845.11 crore stamp duty with the MCG in 2017-18 fiscal, in 2018-19 fiscal they only received ₹382.40 crore from them. MCG officials said that around ₹ 300 crore of stamp duty from the government was still awaited, but had not been transferred by the time 2018-19 fiscal ended. The sum is yet to be received, said officials.

To boost its revenue, last month, MCG officials said that they have started formulating a policy for regularising banquet halls which would help the civic body get ₹120 crore in licence fees. The policy will be introduced after the Lok Sabha polls.

Besides, the MCG is also exploring the possibility of leasing out its vacant plots for commercial ventures . The move will increase its cash reserves and also safeguard its properties.

First Published: Apr 21, 2019 04:43 IST