MCD writes to Delhi govt again, seeks Rs 900 crore annually for toll-tax removal

New Delhi, Sep 18 (PTI) The Municipal Corporation of Delhi (MCD) has once again written to the city government, demanding Rs 900 crore annually in return for scrapping toll-tax collections at the borders of the national capital.

The MCD, officials said, is not opposed to removing toll booths since they cause heavy traffic congestion at Delhi's border points. However, the civic body underlined that the revenue aspect must be addressed before any decision is taken.

"We had earlier written to the Delhi government but did not receive any official reply. Even though a meeting was held over the issue, we did not get any direct response," a senior MCD official said, adding that a second letter was sent to the government on Thursday.

This is the second time the MCD has approached the Delhi government over the matter. In July, the corporation had sent its first letter after a meeting chaired by Union Transport Minister Nitin Gadkari in June, where the removal of toll booths was discussed to ease congestion at the borders.

After property tax, toll tax is the second-highest source of revenue for the MCD. The officials said scrapping it, as suggested earlier by Gadkari, would lead to a major fund crunch for the civic body.

The MCD currently collects toll tax in line with the Delhi Municipal Corporation (Toll Tax) Bye-Laws and also levies Environment Compensation Charges (ECC) on commercial vehicles in accordance with the Supreme Court's directions.

Initially, there were 124 toll points and 30 more were added later, bringing the total to 154. Of these entry points, RFID systems are installed at 11 locations, while the remaining use handheld devices. PTI NSM RC