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  Metros   Mumbai  06 Jul 2017  State creates escrow account to compensate for BMC octroi loss

State creates escrow account to compensate for BMC octroi loss

THE ASIAN AGE. | BHAGWAN PARAB
Published : Jul 6, 2017, 3:10 am IST
Updated : Jul 6, 2017, 3:10 am IST

The finance minister said the state would ensure that the BMC receives compensation instalments on time.

Finance minister Sudhir Mungantiwar presented a cheque of Rs 647 crore to compensate for the loss of octroi post GST.
 Finance minister Sudhir Mungantiwar presented a cheque of Rs 647 crore to compensate for the loss of octroi post GST.

Mumbai: State finance minister, Sudhir Mungantiwar on Monday announced that an escrow account will be created to ensure timely payment to the Brihanmumbai Municipal Corporation (BMC) as a compensation for the loss of octroi post GST implementation.

The announcement was made at a special ceremony held in the civic headquarters, wherein the minister presented a cheque of Rs 647 crore to Shiv Sena chief Uddhav Thackeray and mayor Vishwanath Mahadeshwar compensating for the loss.

The finance minister said the state would ensure that the BMC receives compensation instalments on time. “We will open an escrow account so that the civic body will get its funds without any delay. The government has promised the BMC that it will compensate adequately for the octroi loss. Funds for the same will be released before fifth of every month,” said Mr Mungantiwar.

“A new financial era has begun with GST’s implementation. The state will also compensate for more taking into account eight per cent rise every year if the state becomes financially strong after GST,” said Mr Mungantiwar.

He further added, “Mumbai has contributed immensely to the economic progress of the nation. We cannot think of Maharashtra without Mumbai. The money belongs to common people and should be used for development of the poor.”

Tags: sudhir mungantiwar, gst, uddhav thackeray
Location: India, Maharashtra, Mumbai (Bombay)