Property tax reforms to urban planning: Parties gear up for Vijayawada civic polls

Elections to urban local bodies in Andhra Pradesh will be held on March 10, and counting will take place on March 14.
Prakasam Barrage in Vijayawada
Prakasam Barrage in Vijayawada
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Andhra Pradesh is set to hold elections for urban local bodies, after the panchayat polls concluded on Sunday. Seventy-five municipalities and 12 municipal corporations will go to polls on March 10, and counting will take place on March 14. Campaigning has commenced in Vijayawada, the second largest city in the state, and is set to pick up momentum in the coming days. The city has seen increasing urbanisation regardless of the capital status of nearby Amaravati. The city’s population was around 10.5 lakh as per the 2011 census, and is expected to reach 25 lakh by 2025. 

As 64 wards in Vijayawada are set to go to polls, here’s a look at some of the main issues highlighted by citizens’ groups, and those under focus in various political parties’ campaigns. 

Property tax reforms

Earlier in November, a Government Order (GO) was passed by the Municipal Administration and Urban Development Department, changing the rules for levy and assessment of property tax. Following amendments made to five Municipal Acts through an ordinance, the system of levying of Property Tax has been changed from an Annual Rental Value Basis (ARV) System to Capital Value (CV) System. This was part of the Urban Local Bodies reforms, one of the reforms stipulated by the Union Ministry of Finance to qualify for additional borrowing rights. 

This has become a major issue of contention, with opposition party leaders saying that in a few assessments, the property tax could increase drastically. “Vijayawada Municipal Corporation is yet to notify the new rules, but in some corporations like Tirupati, Kadapa, Guntur, Vizianagaram and Kurnool, notifications have been issued. In some assessments, the tax could increase by up to tenfold,” said CPM leader from Vijayawada Ch Baburao. 

This is also one of the main issues contested by the Telugu Desam Party (TDP). “The property tax issue is very big in this election campaign,” said TDP spokesperson Kommareddy Pattabhi Ram. The YSRCP on the other hand has been claiming that there will be no hike in property taxes, in spite of the orders issued earlier. Endowments Minister and Vijayawada West MLA Vellampalli Srinivas, while campaigning in the city, termed the criticism as false propaganda from the TDP. The YSRCP’s campaign in the city has been heavily reliant on the various welfare schemes being implemented by the state government. 

Increasing charges for civic amenities

Like many other ULBs, Vijayawada Municipal Corporation (VMC) had earlier notified Vijayawada citizens that a monthly user charge of Rs 50 to Rs 100 will be collected for waste collection and processing, as per the Solid Waste Management Rules, 2016. Apart from these, water charges and sewerage user charges have also been hiked through orders issued in November, in order to “enable the ULBs to realize the O&M (operation and maintenance) cost in full from the users.”

“On one hand, funds for local bodies are not transferred by the government in a timely manner. There’s also a delay in transfer of entertainment tax. But with the aim of recovering the Operations and Maintenance expenditure entirely from the users, the burden on common citizens is being increased with these charges,” says Baburao. 

TDP has also alleged that the burden on citizens is being increased, and has claimed that its candidates will resist these revisions in user charges. An aggressive campaign is set to begin from March 1, said Pattabhi Ram. TDP state president Kinjarapu Atchannaidu has said that the party must now rectify the mistakes that occurred in the panchayat polls.  

Urban infrastructure and amenities

Compared to other major cities, Vijayawada continues to have poor infrastructure in spite of rapid urbanisation, says Vijayawada Taxpayers’ Association General Secretary MV Anjaneyulu. “There also hasn’t been a proper approach to shift to underground electrical wiring and drainage systems. There are a few attempts here and there to take up underground drainage works, but in case of any issues, the roads will need to be dug up again. The sewerage system needs to be revamped entirely,” says Anjaneyulu, adding that there are also not enough storm water drains in the city. 

Baburao also points to the fact that despite being situated on the banks of the Krishna river, the city continues to face water shortage in a few localities. “There is still no scientific dumping yard in the city. Unauthorised dumping has continued in some places, affecting local residents,”  he says. 

Issues like sewage overflow and waterlogging, road works, exposed electricity wiring, amenities for residents of hill areas (which are prone to landslides) and delay in distribution of house sites under the state government’s housing scheme for the poor, have come to the fore during YSRCP leaders’ campaign in the city. 

Urban planning and transport

Anjaneyulu laments that Vijayawada has not been developed and expanded effectively over the years, blaming political parties and officials for poor planning. “Expansion must happen naturally. Even if they merge more neighbouring villages into the Vijayawada Municipal Corporation as proposed, that wouldn’t translate to effective expansion of the city. For the city to grow in the right manner, residential and industrial layouts or business hubs must be planned, which is lacking,” he says, highlighting the need to bring in new businesses into the city. 

While Vijayawada's Auto Nagar Industrial Estate is one of the largest auto industry hubs of Asia, Anjaneyulu says that business in the region has been in decline, and not many new businesses have cropped up. 

“Moreover, housing for the poor is being constructed far away in the outskirts. but the city can only be developed if there’s a mix of residential and business layouts, and neighbourhoods of different classes in proximity,”  he says. 

When it comes to traffic issues, the much delayed Kanaka  Durga flyover was recently completed, and the second part of the Benz Circle flyover is also expected to be opened soon. “The flyovers only address issues on the highway. Citywide problems still persist. Road demarcation is not being done properly. The roads are not pedestrian friendly and very few roads have proper pavements,” Anjaneyulu says. 

Public transportation on the other hand has taken a backseat in the conversation around civic polls. The Vijayawada metro project, promised under the Andhra Pradesh Reorganisation Act, has also been diluted, says Baburao, noting that there was no mention of metro projects in the state in the Union Budget 2021. 

A new bus depot will soon be set up by the  APSRTC (Andhra Pradesh State Road Transport Corporation) at Ajit Singh Nagar, according to reports. However, there’s no strong local intervention towards improving bus routes and connectivity, says Baburao, adding that the issue has remained largely ignored in the election battle. 

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