The civic body of Ludhiana is facing such an acute financial crisis that it is considering selling some of its prime lands to generate income to pay salaries and fund developmental projects.
Mayor Balkar Singh Sandhu has suggested that the civic body sell prime lands. He has also instructed the officials to come out with a list of properties that can be sold.
The extended lockdown has affected the recovery of property tax and water supply and sewerage dues. The property tax branch was supposed to have recovered Rs 100 crore in taxes but they could get only Rs 85 crore. The officials claimed if lockdown has not been announced in March, then it would have become easier to achieve the target because maximum recovery takes place in the last week of March. Similarly, the department entrusted with the task could collect only Rs 45 crore in water supply and sewerage dues, much less than the estimated amount.
Requesting anonymity, one of the civic officials claimed that they have been given a target of Rs 130 crore from property tax for this financial year, but it is not possible realistically to achieve the target.
Meanwhile, mayor Sandhu met with MC commissioner KP Brar to discuss revenue generation. He told her that a private firm is interested in the prime land of civic body near Salem Tabri, from where the vegetable market was shifted to Bahadur K Road. He asked the civic body officials to do due diligence of the offer.
“If everything went well, we will be able to generate good amount. There are other prime properties that can also be sold for good profit,” he said, adding that for the development of a large city like Ludhiana funds are also important.
A few months ago, the municipal corporation had proposed selling its prime lands for generating revenue and the resolution was sent to local bodies department for approval. Sources said due to Covid-19, the decision on the proposals were put on hold.
