Kochi: SPVs to end pressing problems

Kochi: The budget of the Kochi Corporation for the financial year 2019-20, presented on Saturday when smoke emanating from the fire that engulfed the waste dump at Brahmapuram enveloped many parts, promises special purpose vehicles (SPVs) to solve the pressing problems of residents.

The budget presented by deputy mayor T.J. Vinod stressed on the efficient manner in which SPVs functions in the Lithuanian capital Vilnius and incorporating the same model in Kochi.

To begin with, it will form a company to handle waste collection and transportation with an outlay of Rs 2 crore.

The European Union has promised financial help for the project, he added. He said companies would require necessary clearances as part of improving the delivery of public services by the civic body.     

According to the deputy mayor, the city of Vilnius, which he had visited with select members of the council recently, had been efficiently operating SPVs in areas as diverse as construction and maintenance of roads, water supply, wastewater disposal and waste management.

The deputy mayor expressed the confidence in improving its finances with their share of service charges from Union and the state governments, supervisory charges in lieu of entertainment charges, increase in tax from Cochin Port Trust area, additional income by revising the land tax of companies, advertising tax in private properties, extra income from other municipalities dumping wastes at Brahmapuram, regularisation charges, user fee and property tax revision.

The focus of the council in the coming year will be on implementing various schemes envisaged to improve the income.

Schemes such as value capture financing and municipal bonds are in the final stages of completion.

SPA Capital Advisers, an agency empanelled with the Union government in connection with the issuance of municipal bonds, has submitted a proposal in this regard and the same has been awaiting the approval of the council.

The rating agency CRISIL has prepared the plan for value capture financing and submitted for the approval of the council.