Darukhana Iron Steel & Scrap Merchants Association (DISMA) opposes implementation of hefty revised rates for market fees

Mumbai, 22nd March, 2016- The recent fee hike proposed by MMR Iron &Steel Market Committee, and now approved by the Government for providing basic civic amenities, has drawn protest from the Darukhana Iron Steel & Scrap Merchants Association (DISMA).

The reason cited for opposing the steep hike is lack of on-ground application by the MMR committee on improving the existing infrastructure-state of the plots/areas under its direct supervision. The responsibility is to provide basic civic amenities such as Motorable Roads, Proper Drainage System and Drinking Water Facility etc. vests on MMR Iron & Steel Market Committee.

In a strong consideration over the matter by DISMA, a live example of Kalamboli Warehousing complex has been stated. The project commenced in the year 1985 for iron and steel trade in a spread area of 302 hectare and today, it consists of 1940 plots. Still, there is no toilet facility as yet.

Following which, DISMA has observed in its letter marked to the government, that the five-fold fee hike is not justified. Even though it is their statutory obligation to provide basic civic amenities including, internal roads, water, drainage, electricity, it is apparent that there are still issues to be addressed. The MMR committee is collecting the market fees regularly, but has still not been able to provide the basic amenities in their designated market areas, satisfactorily.

As quoted by Mr. Rajeev Khandelwal, President of The Darukhana Iron Steel & Scrap Merchants Association (DISMA) on the matter, “this decision by MMR committee has been taken in isolation, without consulting the trading community or the concerned associations. The view of the Steel Fraternities Association-DISMA, BIMA, and Steel Chamber should have been taken into consideration.”

“The failure on part of the MMR committee to provide basic civic facilities to the plot holders, even though it has abundance of funds is not quite understood. As a matter of fact, first the basic civic provisions should be dealt with, and then the issue of any price revision involving the steel fraternity as well should have been taken,” added Mr. Khandelwal.

In response to its opposing the move, it has been intimated that the plot holders should pay the revised rate of market fee or else they will be charged delayed payment charges. The new market rates are applicable from 1st April 2016 and, given the strong dislike by DISMA over the matter, the stage is set for a protest to begin.

MMR Iron & Steel Market Committee has been set up under theMumbai Metropolitan Region Specified Commodities Market (Regulation of Location) Act, 1983 and is under parental control of MMRDA. The responsibility to provide basic civic amenities such as Motorable Roads, Proper Drainage System and Drinking Water Facility etc. vests on MMR Iron & Steel Market Committee.

The Prevailing rate of Market Fees is as under :-

(a)         Area upto 5,000 sq. mtr.             :           Rs. 9/- per sq. mtr.

(b)        5,000 to 1,00,000 sq. mtr.           :           Rs. 7.50 per sq. mtr.

(c)         1,00,001 sq. mtr. & above           :           Rs. 6/- per sq. mtr.

 

Revised Rate of Market Fees is as under : -

(a)         Area upto 5,000 sq. mtr.             :           Rs. 45/- per sq. mtr.

(b)        5,000 to 1,00,000 sq. mtr.           :           Rs. 37.50 per sq. mtr.

(c)         1,00,001 sq. mtr. & above           :           Rs. 30/- per sq. mtr.