Collection dips by 12-13 % in Thane, 20 % in Bhiwandi, Kalyan and Ulhasnagar

With the economic slowdown hitting the industry, collection of octroi in the Mumbai Metropolitan Region (MMR) in Thane has taken a plunge. Octroi collection by the Thane Municipal Corporation (TMC) in Thane, bordering Mumbai, Kalyan, Bhiwandi and Mira-Bhayander, has fallen 12-13 per cent below expectations.

The municipal corporations of Bhiwandi-Nizampur, Kalyan-Dombivli, and Ulhasnagar also witnessed a 20 per cent dip in octroi collection since October-November 2008.

Ajay Vaidya, deputy municipal commissioner (DMC) in charge of the octroi department in Thane said the last good collection was in October 2008 after which it has been plummeting. “In October 2008, we collected 15 per cent more octroi than the previous year’s target. We were hoping to maintain the trend till the end of the financial year. However from November 2008, the situation turned worrisome,” said DMC Vaidya.

Generally, the TMC, which has been collecting around 15 percent higher octroi than the previous year, has to contend with a mere 3.69 per cent now.

“The slowdown in the industry has affected our octroi target. The association of smallscale industries in Thane has submitted a memorandum to reduce octroi as their revenue fell 40 per cent forcing them to cut labour force by the same percentage,” said Vaidya.

However, in Bhiwandi, Kalyan-Dombivli, Ulhasnagar, it is not the civic body that will be affected. The private firms appointed to collect octroi on its behalf have borne the brunt. “Since October 2008, collection has been below expectations. On an average, there has been a 20 per cent loss in revenue,” said Nand Jethani, chairman of Konark Infrastructure, the firm appointed to collect octroi in Bhiwandi, Kalyan-Dombivli and Ulhasnagar.

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