As the annual collection target agreed upon between the civic bodies and the Konark Infrastructure are in the tune of Rs 100 crore, the losses are immense. Konark infrastructure was to collect Rs 127 crore in Bhiwandi, Rs 94 crore in Kalyan-Dombivli and Rs 102 crore in Ulhasnagar. A 20 per cent loss would mean the agency would be at no-profit-no-loss, or may face a loss.

Jethani said the firm had sought a revision of targets from the civic bodies concerned in view of the poor collections.

“Octroi collection has been hit most by the slump in construction activity. Less construction means less raw materials transported. When people buy houses and occupy them, they buy new things. Less construction activity brings economy that thrives on occupation of new houses to a grinding halt,” said Jethani.

Vaidya also lists the decline in construction activity as one of the main reasons for the dip. “TMC collection of development charges on construction activity, predominantly housing, is 22 per cent less than the previous year. Fuel prices have reduced twice in the current year. After two corrections, the Central VAT has been reduced by 6 per cent,” said Vaidya.