Visakhapatnam: VMRDA bounces back with projects after Covid lockdown

Visakhapatnam: The coronavirus-induced lockdown and the subsequent months have left a dent in the revenue generation of Visakhapatnam Metropolitan Region Development Authority (VMRDA).

From generating revenue to the tune of Rs 30 crore per quarter, it has now come down to Rs 3 crore for the period. A major portion of the income for the VMRDA is being generated through land layout approvals and development charges, rentals from commercial complexes, entry fee from tourist spots such as the Central Park, INS Kursura Museum and TU 142 Aircraft Museum.

While the revenue from the tourist spots amount to Rs 1 crore per month, the earnings through commercial complexes touch Rs 8 crore roughly.

However, after a pause of four months, income generated from the commercial complexes has resumed gradually from August. But the revenue that is generated from tourist spots is yet to resume.

There are about 180 staff members working in VMRDA, including permanent staff, those on deputation, outsourced staff and security personnel. In times of the pandemic, it was a struggle for the VMRDA to meet the staff salaries.

After a sluggish first quarter, the VMRDA plans to improve its revenue in the second quarter by 50 per cent. Apparently, the officials concerned feel that the situation is going to improve further in the next quarter.

The first quarter of 2018-19, the VMRDA's income stood at Rs 26.62 crore whereas the expenditure was Rs 28.47 crore. Similarly, in the first quarter of 2019-20, the earnings touched Rs 32.33 crore against the expenditure of Rs 24.87 crore. In 2020-21, the earnings stood at Rs 8.46 crore while spending reached Rs 18.49 crore.

In an effort to overcome the losses incurred and add to the revenues, the VMRDA has identified some open sites and odd bits of land to auction them. Similarly, it also plans to generate income through shopping complexes that were left vacant for long.

Identifying potential areas to develop new layouts and developing nurseries are some of the means the VMRDA intends to consider generating revenue. "The groundwork for the exercise has already commenced. Auction for odd bits and identification of open sites will start from the next week. Works pertaining to various VMRDA projects worth Rs 385 crore will continue. There is no dearth of funds in completing these projects," says P Koteswara Rao, VMRDA Commissioner.

At a time when Visakhapatnam is all set to become the executive capital, new layouts under the VMRDA's ambit are likely to take wings. As a result, revenue will also be improved in the coming days.