Power to get costlier as MC hikes cess by 6 paise per unit
Electricity consumers will have to shell out more as the Municipal Corporation (MC) today approved a proposal to increase power cess by 6 paise per unit.
The cess will rise from 10 paise to 16 paise per unit, bringing it on a par with the Punjab rate.
The proposal had earlier been withdrawn by former Aam Aadmi Party (AAP) Mayor Kuldeep Kumar in November last. At today’s General House meeting, the proposal was passed without an objection either from the ruling party or the opposition.
Municipal officials justified the hike as a necessary step to address the city’s financial crunch. Currently, the electricity tax generates Rs 15-16 crore per annum and the increase is expected to boost revenue to Rs 22-23 crore.
In neighbouring states, Punjab levies a municipal tax of 2% on electricity consumption, amounting to 16 paise per unit, while Haryana charges 8 paise per unit. The Chandigarh MC argued that additional revenue generation was essential to sustain civic services.
Both the AAP and Congress had previously opposed the hike and, in their Lok Sabha election manifestos, had promised free power and water while rejecting new taxes. The increase in the electricity cess awaits a formal notification before being implemented.
Despite opposition from councillors, the MC House approved hiring of a new private firm for processing the third garbage mountain at the Dadu Majra dumping ground by July 2025. The exercise would cost an estimated Rs 12 crore.
Meanwhile, the MC House rejected a proposal to transfer all V3 roads, covering 262 km, to the UT Administration for recarpeting and maintenance, following strong opposition from councillors. However, Municipal Commissioner Amit Kumar dissented, emphasising the need for road repair.
Opposition parties raised their concern over the lack of financial support from the UT Administration. AAP Councillor Hardeep Singh stated, “The UT has not provided any additional funds to the MC so far. If we repair roads now, we cannot expect future assistance. Let peopleface problems so the UT realises that the MC is facing financial crunch. If transferring roads is the solution, why doesn’t the MC hand over all its responsibilities to the UT?”
Congress councillor Gurpreet Singh Gabi said, “Instead of transferring roads, the MC should demand additional grants from the UT and manage its projects independently.”
The House also rejected the smart parking project and the Integrated Solid Waste Management plant over alleged flawed terms and conditions. BJP councillor Saurabh Joshi said there were discrepancies in the tendering process.
