NMC ‘no’ to abolish IRDP cess on petrol, diesel

Nagpur: The Nagpur Municipal Corporation (NMC) office bearers have said there are no plans to reduce rates of petrol and diesel in the city by abolishing cess of Integrated Road Development Project (IRDP) on the two fuels from the state government.
Replying to TOI’s query, standing committee chairman Virendra Kukreja said the idea has not been taken into considertion as yet.

While presenting the 2012-13 budget, the then standing committee chairman Dayashankar Tiwari had said IRDP cess would be abolished on petrol and diesel after consultation with the government.

The state government has been levying 1% cess on petrol and 3% on diesel since 2011 for recovery of money spent on IRDP project between 2001 and 2003. Had the cess been abolished, the petrol price would have come down by Rs 0.84 from existing Rs 84.96 per litre and diesel price by Rs 2.19 from existing Rs 73.14 per litre.

The Maharashtra State Road Development Corporation (MSRDC) had widened and beautified 58 roads with total length of 200km along with construction of railway over bridges (ROBs), railway under bridges (RUBs) at nine locations under IRDP project. The project cost was around Rs500 crore.

The government is also recovering the expenditure through collections at five tolls located on city’s borders since 2001. NMC sources said that neither the civic boy nor the MSRDC has data about exact recovery from toll taxes and cess on petrol and diesel.

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