Council forced to take over collection process
VALPOI
Despite issuing tenders three times, the Valpoi Municipal Council (VMC) has failed to receive the required response for the collection of ‘sopo fee’ in its jurisdiction.
As a result, the council has been compelled to take over the collection process itself. However, this decision is likely to cause significant financial loss to the civic body.
The annual revenue generated from this source is expected to drop considerably. Given that the municipality is already facing a weak financial condition, this shortfall could further worsen its economic situation.
Meanwhile, the tenure of the current municipal council ends on April 8, and from April 9, administrative control will be handed over to officials, posing a major challenge for the incoming administration.
As per the usual practice, the council invites tenders every year to award the contract to collect sopo fees. This year, the tender was floated for approximately Rs 12 lakh. Advertisements were published three times, but no adequate response was received from bidders.
With no bidders coming forward even after repeated attempts, the VMC has now started collecting the fees on its own. However, the revenue being generated over the past five days has been minimal.
According to available information, the daily collection is barely around Rs 1,000. At this rate, the monthly revenue is expected to be around Rs 36,000, and the annual income may not exceed Rs 4 lakh.
In contrast, the VMC used to earn around Rs 11–12 lakh annually in previous years, indicating that with the present meagre collection projected at about Rs 4 lakh the VMC could suffer a revenue loss of over Rs 7 lakh during the year.
The VMC had set the tender value at Rs 12 lakh, but it is believed that such a high target discouraged potential bidders. Experts suggest that reducing the base amount to around Rs 9 lakh could have attracted bidders and ensured better revenue realisation.
At a recent council meeting, the issue was discussed among council members. While some councillors suggested lowering the tender amount and awarding the contract, others strongly opposed the proposal. As a result, no final decision could be reached.
The absence of a clear decision has directly impacted the municipal treasury, leading to increased financial strain. It is now expected that once the administrative officer take charge, they will adopt a firm approach and implement effective measures to improve revenue collection. However, the actual outcome will only be clear after the new administration assumes control.