``Compared to the previous financial year (1997-98) this year we have earned Rs 8 crore less. Of this the loss of Rs 5 crore can be directly attributed to the closure of industries in the area,'' said Deputy Municipal Commissioner R K Sonawane last week.

In contrast, collections before 1997-98 had always crossed the targets. The records show that in 1993-94 the KDMC earned Rs 27.86 crore (against a target of Rs 27 crore), in 1994-95 it earned Rs 40.35 crore (target: Rs 30.50 crore), in 1995-96 the collection was Rs 51.17 (target: Rs 50 crore) and in 1996-97 it earned Rs 60.41 (target: Rs 60 crore).

The collection began to decline in the financial year 1997-98 when the economy was hit by recession and industrial growth became sluggish. However, despitewarnings from several quarters the KDMC set an unrealistic target of Rs 84 crore (later revised to Rs 58 crore). Also, during this time several large industrial units, including Premier Automobiles Ltd (PAL) which alone had contributed Rs 12 crore to octroi kitty in 1995-96, turned sick leading to a loss of Rs 19 crore to the civic corporation.

Again in the budget estimates for 1998-99, the octroi target was retained at Rs 84 crore without any special measures to ensure that the last year's experience was not repeated. But the year turned out to be really bad for the corporation. During the period between April 1, 1998 and August 16, 1998 the average daily collections came down to an all time low of just Rs 13,65,130.

Alarmed at the decline, the then KDMC Commissioner Madhukar Kokate had appointed DMC Sonawane as the octroi in-charge. Following strict vigil and the modernisation of octroi centres, collections picked up, but only marginally.

Records show that the collection from industries has plummetedin the last two years. In 1997-98 the octroi collection fell to Rs 17.76 crore from the previous year's Rs 25.21 crore. In 1998-99 it fell further to Rs 12.99 crore.

The DMC faces an increasingly uphill task with increasing resistance from the manufacturers and traders. The Kalyan Manufacturers' Asscoiation has stopped transporting raw material into the Kalyan-Dombivli area in protest against what they call Sonwane's `strong-arm tactics'. When the collections could not meet the revised 1998-99 target of Rs 58 crore it is anybody's guess if it will be able to meet the current budget's (1999-2000) target of Rs 80 crore.

To make matters worse the state govrnment recently announced its decision to abolish octroi in municipal council areas. ``What is to prevent the remaining industries in the KDMC area from moving out to Ambernath and Badlapur if this happens?'' said a senior KDMC official.

Meanwhile, in the neighbouring Thane in spite of the recession the civic corporation has managed to raise Rs 131.29crore as octroi duty against a target of Rs 134 crore (1998-99). After Mumbai this is the second highest collection by any civic corporation in the state.