The North Corporation and telecom operators are at loggerheads with each other over the issue of paying “way-leave or usage charge”. The civic body has announced it will issue a circular saying that it will not give permission for road cutting under its jurisdiction till the companies are not ready to pay the prescribed charges, while the latter have termed it illegal and unwarranted.
Hoping to earn revenue of nearly Rs 5,000 crore yearly, in August 2015 the North Corporation passed a new resolution imposing way leave or usage charges on telecom firms, discoms, or other companies for their use of roads, footpaths or streetlight poles in areas falling under its jurisdiction, under relevant sections of the DMC Act.
The utility companies so far have not paid any heed to this resolution and to several notices issued by the civic body against violating the DMC norm.
As per the North Corporation official circular (yet to be issued), a few days back, at a meeting between the civic authority and representatives of utility companies, the mobile companies straightaway refused to paying way-leave charges, terming it illegal and unwarranted.
“It was decided that the corporation shall not issue any fresh road cutting permission to telecom operators as they are not willing to pay the legitimate way-leave charge to the corporation, especially at a time when the corporation is reeling under a financial crunch,” the circular says.
The North Delhi mayor explained that departments from these entities lay down optical fibre cables or wire networks on corporation roads or properties under its jurisdiction, so the NDMC has imposed way leave/usage charges on them.
“The corporation can earn revenue of nearly Rs 5,000 crore every year at the rate of Rs 75,162 per running metre,” the North Delhi mayor said.
The estimated total length of optic fibre club cables laid down by various private service providers is approximately Rs 16,410 per running km and Rs 30,000 per running km for telecom companies, discoms, MTNL, IGL, DJB, and other companies.
According to the mayor, such practice is already prevalent in Pune, Bengaluru and Bhopal and other cities and helps their municipal corporations earn good revenue.
