Delhi Metro

Delhi Metro Rail Corporation has already got from
central government 950 crores exemption on import duty
and 450 crores exemption on excise duty and from Delhi
government 400 crores exemption on sales tax. It has
benefit also of low electricity tariff and of property
development for revenue generation (even in violation
of the Master Plan, including on riverbed and green
areas).

Now DMRC wants waiver of 70 crores on worker welfare
tax on grounds that it is a public utility. (news
report at the end).

With presumably the same conviction of doing enough
welfare for the city by just being, DMRC has not,
despite requests, provided space at stations for
hawkers, as required by the Master Plan, preferring
instead up-market retail chains for its partners in
providing public utility. Naturally, it has also not
considered the possibility that shops that are
demolished for the Metro can be ? indeed should be ?
accommodated in Metro property development. (Solutions
being sought for the current ?problem? of
project-affected-persons on Pusa Road, for instance,
do not factor in the possibility of using Vivek Cinema
site, acquired in full in name of public utility using
urgency clause ? that is, without need for Public
Notice inviting objections ? for station, ?etc? and
not needed in full for station and, so, available in
part for ?etc?).

Out of the money that it is saving and making in the
name of being public utility, DMRC seems to be
investing quite generously in all manners of frills
not strictly necessary for being public utility,
besides on public relations on a scale unprecedented
in a public authority. The latter has contributed to a
very one-sided public image of the Metro. Instances of
problems created for citizens and violations (such as
of Master Plan and Central Ground Water Authority
directives) by Metro have not made news, nor have
accidents, including serious ones.

Non-transparency about cost-benefit of the Metro has
implications beyond just economic since the Metro has
become an icon in the city and is emerging as a key
determinant in land use, development and real estate
decisions. How much do Metro?s various activities
contribute to its public utility worth and at what
cost are questions that need to be answered sooner
rather than later ? and most certainly before a
decision on waiver of worker welfare tax for DMRC so
that our welfare state is sure that the public utility
for which the waiver is made is indeed in greater
public interest than worker welfare.

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Some previous posts:
http://www.architexturez.net/+/subject-listing/000081.shtml
http://mail.architexturez.net/pipermail/in-enaction/2002-September/000008.html
http://mail.architexturez.net/pipermail/in-enaction/2003-January/000012.html
http://www.architexturez.net/+/subject-listing/000106.shtml
http://mail.architexturez.net/pipermail/in-enaction/2003-February/000032.html
------------

News report in Hindustan Times 03.08.2003

Depts unwilling to collect extra tax
Chetan Chauhan
(New Delhi, August 2)
Delhi government's decision to impose one per cent tax
on construction costs of major projects has failed to
take off. The tax that would create a fund for the
welfare of labourers in the city is being blackballed
by different government departments who are citing
technical problems for not implementing the scheme.
The various departments are not willing to get
involved in the process of collecting the money from
contractors and deposit it with the Labour Department.
"They want that the Labour Department should collect
the tax directly from the contractors. The Labour
Department, in turn, does not want to deal with a
large number of contractors. It has suggested that the
amount should be deducted from the payment being made
to contractors," an official said.
The end result is that not a single rupee has been
collected so far though notices to the PWD, MCD, DMRC,
NDMC and Central Public Works Department were issued
about three months ago.
Officials said that the DMRC has already asked the
Labour Department to waive a tax of Rs 70 crore
considering the public utility of the metro project.
When contacted, Industries Minister Deep Chand Bandhu
said that the tax has been levied as per provisions of
the Labour and Construction Workers Welfare Act. "Our
intention is to provide facilities for the welfare of
those working at construction sites. We will force the
departments to pay," Bandhu said. The money can be
utilised to sanction loans and advances, as premiums
for Group Insurance Schemes, provide financial
assistance for education of children and maternity
benefits





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