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Revenue boost: Rajasthan govt to reduce District Level Committee rates for ULBs

UDH minister Shanti Dhariwal directed officials to make the proposal for reducing DLC rates

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The State Government will reduce the District Level Committee (DLC) rates to increase the revenues of the Urban Local Bodies, which are facing financial crisis. After the DLC rates are reduced, government lands can be auctioned easily as it will attract bidders. As a result of this, the revenue of Urban Local Bodies (ULBs) will increase. UDH minister Shanti Dhariwal directed officials to make the proposal for reducing DLC rates. There are 192 ULBs in the state. The economic condition of urban bodies is not good. Jaipur Development Authority (JDA) has a loan of Rs 2,000 crores. JDA does not even have money to repair the roads.  

The Jaipur Municipal Corporation (JMC)’s treasure is also empty. Due to which the development work of Jaipur city is getting affected. Similarly, there are other urban bodies across the state. The main means of income of urban bodies is the land auction. ULBs get revenues by selling their government land in their area. People are currently avoiding buying government land because of the hike in land prices in the last five years. Jaipur Municipal Corporation (JMC) had received only Rs 6 crores from the land auction in the fiscal year 2016-17. In the fiscal year, 2017-18 and 2018-19, the municipal corporation has not been able to sell land worth Rs 1. The similar situation is of JDA as in the last three years, JDA got only the nominal revenues from the land auction.

Due to the recession and thereafter demonetization, the property market of the state has declined. In the last five years, the rate of land has swelled rapidly. Whereas DLC rates have increased in the last five years. The local bodies can not auction their properties on less than the applicable DLC rates and following a slowdown in real estate market over past few years the land price has dropped below the DLC rates in several areas. This has also made the registration of properties comparatively expensive as the applicable charges are determined on the DLC rates. To buy government land, money is required to be paid in the bank account. People are not showing interest in buying government land due to high DLC rates and white transaction. This is the reason that the state government is considering reducing the DLC rate. Due to the low DLC rates, people will be motivated to buy government lands and urban bodies will be able to generate income.

“The DLC rates increased by up to 40 per cent during the tenure of the previous government, these unreasonably high rates made it difficult for local bodies to auction their land and this has come to deteriorate their financial structure,” urban development minister, Shanti Dhariwal.

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