According to a top officer, the SMC would soon have a separate vigilance squad for octroi, the flagship of its income sources.

As if the recession in the textile industry was not enough -- which contributes to more than 50 per cent of the octroi income -- the recent flood followed quickly by festivals have compounded worries of one of the richest civic bodies.

At present, there is no separate vigilance squad for octroi and the vigilance squad of 21 members is grossly inadequate. Leave alone octroi they can't even perform their regular duties, admits a civic officer.

Members for the new squad would be drawn from other departments. But unlike earlier days, the emphasis would now be on employing experienced people, who are aware of technicalities and are conversant with rates of various commodities.

The only way the Surat Municipal Corporation can make up for the falling revenue is by turning the heat on evaders and increasing the quantum of recovery, says the top officer. Incentives would be given to the vigilance staff to bring in more octroi, he said, listing out one of the possible measures that are on the anvil.

There are little chances of improvement in the prospects of textile industry, whose problems are compounded by the falling rates of yarn from Rs 170 to as less as Rs 70 to 80. While the quantum of yarn has not decreased, octroi, which is calculated on value, has.

``There were many loopholes in our octroi collection system and efforts will be made to plug them,'' says an officer on the condition of anonymity. However, decrease in the octroi revenue due to recession in textile industry is nothing new. The octroi department's demand for schedule revision has been pending with the State government.

Earlier, the standing committee had sat over the proposal for nearly one-and-a-half years. What has affected the SMC's plans is the recent flood when thousands of powerlooms were inundated and could not come back on their feet for a very long time. The flood and its aftereffects cost the SMC at least Rs 2.5 crore in octroi, says Assistant Commissioner B T Shah. He, however, claims that the the Surat Municipal Corporation was able to meet the Rs 100 crore around the same time as it did last year.

President of Southern Gujarat Chamber of Commerce and Industry, which has demanded abolition of octroi, Rajendra Chokhawala, says the SMC's projected growth of 20 per cent had come a cropper as the collection figures for April to October show growth of only two per cent.