Electricity bills in Chandigarh are set to rise as the Municipal Corporation (MC) has approved a proposal to increase the power cess by 6 paise per unit. With this hike, the cess will increase from 10 paise to 16 paise per unit, aligning with the electricity tax rate in Punjab.
The proposal, previously withdrawn by former AAP Mayor Kuldeep Kumar in November, was passed in today’s General House meeting without any opposition from either the ruling party or opposition members. MC officials defended the increase, citing the city’s financial constraints as the primary reason. The existing electricity cess generates ₹15-16 crore annually, and the revised rate is expected to boost revenue to ₹22-23 crore.
In comparison, Punjab levies a municipal tax of 2% on electricity consumption, equating to 16 paise per unit, while Haryana charges 8 paise per unit. Chandigarh’s MC argued that additional revenue generation is crucial for sustaining civic services. However, both AAP and Congress had previously opposed the hike, promising free power and water in their Lok Sabha election manifestos while rejecting any new taxes. The increased electricity cess is pending formal notification before implementation.
Approval for ₹12 Crore Waste Management Project
Despite resistance from some councillors, the MC House approved the hiring of a private firm to process the third garbage dump at the Dadu Majra landfill. The project, set to be completed by July 2025, is estimated to cost ₹12 crore.
MC House Rejects V3 Road Transfer Proposal
A proposal to transfer all V3 roads, spanning 262 km, to the UT Administration for recarpeting and maintenance was strongly opposed and ultimately rejected by the MC House. Municipal Commissioner Amit Kumar dissented, emphasizing the urgent need for road repairs.
Opposition members voiced concerns over the lack of financial support from the UT Administration. AAP Councillor Hardeep Singh remarked, “The UT has not provided any additional funds to the MC so far. If we repair the roads now, we cannot expect future financial assistance. Let the people face difficulties so the UT realizes that the MC is struggling financially. If road transfers are the solution, why not hand over all municipal responsibilities to the UT?”
Congress Councillor Gurpreet Singh Gabi also opposed the proposal, arguing that instead of transferring roads, the MC should demand additional grants from the UT and manage its projects independently.
Rejection of Smart Parking and Solid Waste Management Plant
The House also dismissed the smart parking project and the Integrated Solid Waste Management Plant, citing flawed terms and conditions in the tendering process. BJP Councillor Saurabh Joshi pointed out discrepancies in the bidding process, leading to the proposal’s rejection.
With key civic issues such as power costs, waste management, and infrastructure maintenance at the forefront, the MC’s recent decisions are set to impact residents and future municipal operations significantly.
