New Delhi: New Delhi Municipal Council (NDMC) has surpassed its target for licence fee collection for the financial year 2023-24 within the estate department, amassing a total of Rs 927 crore against a target of Rs 825 crore.
In comparison, the collection in 2022-23 was Rs 628.7 crore, and in 2021-22, it was Rs 527.7 crore. In NDMC areas, a total of 3,495 units or spaces are on licence fee basis, including shops, kiosks and 137 spaces rented to govt offices and public sector undertakings.
“The estate department has, for the first time, crossed its revised estimate, with the highest collections recorded in the final quarter through persistent efforts to clear pending fees from govt departments and PSUs. The efforts included sending repeated reminders and emails, holding meetings and reconciliation of dues. Besides, we approached other PSUs and govt agencies to occupy spaces lying vacant for a long time in NDMC areas,” said an official.
The council has reduced the unoccupied NDMC space from nearly 2.2 lakh square feet in April 2023 to 80,000 square feet by April 2024.
“Though the gap has been reduced, we still have prominent office spaces left at Palika Bhawan, RK Puram and Mayur Bhawan, Connaught Place. Furthermore, two new buildings, having more than 5,000 square metres of area and parking space are also coming up at Moti Bagh and Panchkuian Road. We are preparing a plan to ensure all these places are rented out in a time-bound manner,” said the official.
From govt offices and PSUs, NDMC charges rent at Rs 457 per square foot per month, which includes maintenance charges. The rates for shops and other commercial spaces have not changed in a decade, with a policy revision still under consideration.
The council also provides electricity and water in its areas and claims to have collected Rs 1,811.7 crore in 2023-24 against a target of Rs 1,659.9 crore. Comparatively, it had collected commercial revenue of Rs 1,503 crore in FY 2021-22 and Rs 1,722 crore in FY 2022-23.
The council has also surpassed its collection target from parking lots by over one crore rupees amid criticism for poor operation and problems in leasing out these spaces. “We have collected Rs 21 crore against a target of Rs 20 crore in the FY 2023-24,” said the official.
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