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Govt sops to Jio irk Kochi corporation

Corp will incur a loss of Rs 20-crore if the government rate is accepted, say sources.

Kochi: The tussle between Kochi corporation and state government over the rates to be charged from private companies for restoration work after digging up roads in the corporation limit has intensified further with the civic body declining to accept the rates proposed by the government. Reliance Jio is the latest private entity to be caught in the tug of war between the government and the corporation. The tussle over Jio has erupted even as the stand-off between the government and corporation over the amount to be charged from the IOC-Adani City Gas project is yet to be resolved.

According to a corporation official the rate fixed by the LSGD (Local Self Government Department) for the restoration of the road work is much lower than that of the amount fixed by the corporation. If permission is given based on the government rate the corporation is expected lose around Rs 20 cr, said corporation sources. Ernakulam MLA Hibi Eden has questioned the rational of the government reducing the rate for a corporate entity like the Reliance Jio. Reliance Jio is a company capable of paying the rates fixed by the civic body and there was no need for the government to provide any incentives, he said.

A Reliance Jio spokesperson told this newspaper that the company has received permission from the LSGD in July and the same has been submitted to the civic body for its approval. The civic body however was not prepared to accept the rates approved by the LSGD. The work connected with the laying of OFC cable by the Reliance Jio has been pending for the past two years. The cabling is essential for launching the broadband connectivity to households. The company plans to have OFC cable network of 242 km within the corporation limits.

( Source : Deccan Chronicle. )
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