The Hindu

Mangalore, Oct 29: Barely a day after assuming office, the new Mayor of Mangalore Vijaya Arun seems in for a daunting task. The corporation allegedly has no money to take up works such as road repairs and the extension of underground drainage. The MCC has to pay Rs 5 crore as promised to the State Government as its share for the second vented dam.

The debt servicing schedule is likely to start this December and the corporation will have to start repaying the principal and the interest on the Rs 309-crore loan from the Asian Development Bank through the Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC) for developing urban infrastructure in Mangalore at 11 per cent an annum.

The civic body is reeling under a financial crunch, as the Government is not able to come up with foolproof tax collection methods and the Self Assessment Scheme (SAS) has also been blocked by the ruling Congress party for the last five years. The Opposition Bharatiya Janata Party (BJP) had also endorsed the view of the ruling party of not imposing SAS in Mangalore.

The city now awaits the alternative tax system to be fully re-enacted.

The rating agency and infrastructure advisory body CRISIL had suggested that Mangalore city consider revision of tax rates in all heads, for water, house, business establishments and also introduce cess. There is also a need to increase non-revenue sources of income, the agency added.

The Mayor in her debut meeting faced a volley of questions from the Opposition who claimed that the corporation owed bills amounting to Rs 10 crore during this financial year and with the Government grant getting delayed the civic body has just enough money to pay the salaries of employees and to take up small maintenance works.

With her tenure in office curtailed to three months, the new Mayor is also faced with the problem of not being able to initiate new works.

Works need to get approval from the council, standing committees and to be ratified by the joint meeting of the committees. All this takes not less than two months. Also, any work above Rs 1 lac needs to be passed through the tender which is also a long process.

According to MLA N Yogish Bhat, the Corporation owes funds to contractors who have worked on many civil works in many parts of Mangalore.