SDMC picks firm for toll tax collection

Among the six companies that submitted their tender for collection of toll tax, South Delhi Municipal Corporation's (SDMC) standing committee gave its nod to the company offering Rs 126 crore of M/S MEP infrastructure. This company has given a guarantee of Rs 23 crore.

The company will be free to surrender after a year of the contract although the contract is for five years. 25 per cent of performance security deposit will be forfeited and the remaining amount will be released after 90 days.

Toll tax received will be distributed in the ratio of 1:1 and 0.6 between the SDMC, NDMC and EMDC. SDMC will be getting an annual amount of Rs 478 crore which is almost double the amount being received in the earlier contract of three years.

ECC will be collected by the selected company from all vehicles entering Delhi and the collected amount will then be transferred to the city Government.