Indore Corporation’s ₹7800 cr budget proposes significant tax hikes, infrastructure improvements

K K Jha
Indore: Residents of Madhya Pradesh’s commercial capital are bracing for a financial impact as the BJP-ruled Indore Municipal Corporation (IMC) prepares to announce substantial hikes in water cess and property tax for the fiscal year 2024-25.

The budget will be presented on Tuesday by Mayor Pushyamitra Bhargav at Atal Parisar, located at the IMC headquarters. This ambitious budget, totaling approximately ₹7800 crore, aims to facilitate several developmental projects, focusing primarily on infrastructure improvements and addressing the city’s ongoing water crisis.

However, the budget also includes significant tax increases that are likely to affect both residents and businesses.

Water Cess Hike:

One of the major changes is a notable increase in utility costs, with the water cess set to rise by 50%, raising the monthly charge from ₹200 to ₹300. This increase positions Indore as having the highest water cess rate in Madhya Pradesh, despite the city currently providing water only 15 days a month.

Property Tax Increase:

Additionally, the budget proposes an 8-10% increase in property tax. This comes on the heels of recent adjustments to the rate zones of various colonies, further burdening property owners with higher rates.

Garbage Charge Amendment:

In a move to address the city’s waste management needs, the budget may also introduce a hike in garbage charges. The current plans suggest an increase solely for commercial properties based on plot area, following an amendment from an earlier proposal that included residential properties.

Narmada Water Project – Phase Four:

Among the most significant projects in the upcoming budget is the fourth phase of the Narmada water project, which aims to provide a consistent daily water supply to Indore residents. With a total budget of ₹1900 crore, this project involves securing a loan of ₹800 crore from the International Finance Corporation (IFC).

Upon completion, the project is expected to deliver 900 million liters per day (MLD) of water, addressing the city’s growing water demands and extending service to new areas within urban limits. To support this expansion, the IMC plans to construct 32 new overhead water tanks and repair existing pipelines from earlier phases. The project is targeted for completion by December 2026 and is designed to meet Indore’s water supply needs through 2050.

Environmental and IT Initiatives:

In preparation for the upcoming Simhastha, the budget also emphasizes the cleaning of the Kanh River and the installation and commissioning of all sewage treatment plants (STPs) to ensure environmental sustainability.

Waste-to-Energy Initiative:

The IMC is likely to allocate additional funds for Information Technology improvements, focusing on the development of a new portal and other technological advancements to streamline city services. A “waste-to-energy initiative” is also included in the budget, aimed at enhancing the city’s sustainability efforts and reducing its carbon footprint.

Impact on Residents and Businesses:

While the budget outlines crucial developmental projects and sustainability initiatives, the substantial tax hikes are expected to impact residents and businesses significantly. The increase in water cess and property tax may strain household budgets and commercial operations, potentially affecting the overall economic landscape of the city.

Mayor Bhargav’s budget presentation is anticipated with a mix of apprehension and hope, as citizens and businesses look forward to the promised improvements while preparing for the financial adjustments ahead.