Cess on Petrol, Diesel to be abolished

Source: The Hitavada      Date: 02 Oct 2018 09:28:26


Special Correspondent,

Government to pay outstanding dues of Rs 305 cr to MSRDC towards IRDP

Petrol and diesel in city could become cheaper as cess imposed in lieu of Integrated Road Development Programme (IRDP) is likely to be abolished by the State Government. The Government has decided to compensate Maharashtra State Road Development Corporation (MSRDC) from the State’s general budget. The Government has issued a circular stating that it would pay the outstanding amount of Rs 305 crore utilised for IRDP, thereby providing relief to citizens.

Presently, Nagpurians are paying 1 percent cess on petrol and 3 percent cess on diesel. The abolition of cess on petroleum products will give some relief to the citizens, who are already under financial burden after immense hike in petrol and diesel prices. Chief Minister Devendra Fadnavis has given a major relief to the citizens of Nagpur.

Congress Government had sanctioned a loan of Rs 350 crore to Nagpur for improvement of roads under IRDP under Built Own and Operate (BOT) basis in 2001 when Vilasrao Deshmukh was Chief Minister. MSRDC was nodal agency appointed for the construction of roads. MSRDC had improved 58 roads with a total length 200 kms. It also developed Ram Jhula and other 9 Railway over-bridges and railway under bridges including those at Mankapur, Mecosabag, Mangalwari, Kalamna Market, Maskasath and railway under bridges at Narendra Nagar in the city.

State Government had installed five toll booths for the recovery of amount sanctioned under IRDP. The government has decided to recover amount from Vidarbha Statutory Development Board, Nagpur Municipal Corporation (NMC), Nagpur Improvement Trust (NIT), Special funds from the State Government and some funds from MPLAD and MLA Development Funds. Members of Parliament, Members of Legislature never gave funds from their development funds. VSDB has given some funds but later it stopped releasing funds for repayment of loan.

As MSRDC did not receive funds from the various sources to repay the loan, the amount increased upto Rs 517.36 crore from original Rs 350 crore. The period for the repayment of loan amount is 29 years and it is impossible to recover the amount in these many years.

MSRDC has submitted the proposal to State Government to sanction Rs 517. 36 crore to be recovered from Nagpurians. The additional amount is Rs 167.36 crore and balance amount is Rs 138.47 crore, the total amount is Rs 305.83 crore. Finance Department will give its nod to repay the balance amount to MSRDC to give relief to the citizens.