40% of city trade wiped out by pandemic: BBMP data

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Amid constant efforts to reboot the economy, the pandemic may have wiped out nearly 40 per cent of the city’s business establishments, according to BBMP officials.

Only 62 per cent of city traders have applied to renew their trade licences during 2021-22. Data provided by the Bruhat Bengaluru Mahanagara Palike (BBMP) shows a steady decline in traders applying to renew their licences throughout the pandemic-hit years. The number of fresh traders applying for licences remained the same during the period.

“During 2019-20, the BBMP issued 51,564 trade licences. The number dropped to 45,388 during the 2020-21 financial year. However, in 2021-22, only 37,511 trade licences have been issued, out of which 8,572 were fresh trade licences. Data suggests that many of the trade firms may have shut doors during the pandemic years,” a senior official from the BBMP’s health wing that oversees trade licences told DH.

The civic body does not seem to have a system in place to catch traders continuing their business activities without renewing their licences. “Traders don’t inform us while shutting nor do we have a mechanism to check the business’s status. We assume the trader had shut shop if he’s not renewing the licence,” the official added.

Officials also said some new or fresh trade licences opting for a five-year licensing period may not reflect in the yearly renewal. The BBMP’s focus on Covid management also affected the enforcement and monitoring of trade practices in the city.

BBMP’s Chief Health Officer Dr A S Balasundar said the civic body was planning to survey the businesses to find out if any of them are functioning without a licence. “Traders have time till February end to get their licences renewed without a fine for 2022. We’ll survey businesses at the ward level and ensure those operating without licenses or those whose licences have expired apply. If they don’t, we’ll close them down,” Dr Balasundar said.

The civic body issues trade licences in about 70 different categories of trade in four sectors: goods, storage, service and manufacturing. However, officials hope that the government will let them add 85 more categories. “Owing to technological advancements, many new services are coming up,” a BBMP official explained. Officials are also planning to streamline establishments coming up in residential areas.

Though it had already done away with spot inspections for trade license renewal, the BBMP is yet to decide on spot inspections for new trades.

“We’re considering a proposal to differentiate trades impacting public health and those that do not. We’re considering cancelling spot inspection for those trades with no impact on public health,” said Dr K V Thrilok Chandra, BBMP Special Commissioner (Health).

Some BBMP officials are wary about the decision. “Since we don’t conduct inspections during renewal, some traders modify the shops leading to other environmental problems and public inconvenience,” a senior official said.

The BBMP is also in the process of developing a dedicated dashboard that will display the number of licences issued, the number of pending applications and the status of the applications.

Traders can renew licences without penalty till February 28 or with a fine of 25 per cent of the renewal fee till March 31. From April, the licence fee must be paid with a 100 per cent fine. So far, the BBMP has collected Rs 40 crore in 2021-22 as the fee to issue fresh licences and to renew existing ones, which is Rs 15 crore less than 2020-21.

“We have got the potential to collect up to Rs 100 crore in trade licences. We are working towards it,” the officials said.

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