RMC's financial health improves

The financial health of Rajkot Municipal Corporation, which has been in troubles during the past three years, is getting better.

There corporation has seen a remarkable improvement in its revenues in the four months to March this year. Between December 2003 and March 2004 the corporation got income of Rs 4.02 crore, compared with Rs 52.32 lakh in the year-ago period.

From December 2003 to March 2004, the corporation's income from property tax stood at Rs 5.29 crore (Rs 4.30 crore between December 2002 and March 2003), water tax at Rs 91 lakh (Rs 40 lakh) and octroi at Rs. 23.23 crore (Rs 20.54 crore).

Also, the corporation is also restructuring the loans taken from banks. For instance, it is refinancing the Rs 2.25 crore loan taken from Rajkot Nagrik Co-op Bank at an interest rate of 11.75 per cent per annum with Dena Bank at 7.25 per cent. With this refinancing, it will be saving Rs 1.26 crore in loan outgo.

The corporation is also stepping forward with various infrastructure projects. It has started a Rs 8. 53 lakh project for development of the octroi system.

In joint venture with Rajkot Urban Development Authority it is developing a special software for the construction sector.

"With the new software, permissions for construction projects will be given online by the town planning office of the corporation." said Vijay Chawhan, chairman (town planning committee), RMC.

The online system for granting permissions to construction projects will help the corporation to assess taxes to be levied on every property.