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New national truck permit regime soon

Uttar Pradesh, along with other states, is gearing up to usher into a new liberalised national truck permit regime. It may unleash a competition among transporters thereby giving a stimulus to an overall economic growth.

lucknow Updated: May 10, 2010 15:36 IST
Brajendra K Parashar

Uttar Pradesh, along with other states, is gearing up to usher into a new liberalised national truck permit regime.

It may unleash a competition among transporters thereby giving a stimulus to an overall economic growth.

Under the new composite permit fee system to come into effect very shortly, a truck operator will have the liberty to operate in country in as many states as he wants to, provided he obtains the national permit by depositing just an annual fee of Rs 15,000.

At present, a truck operator has to take the national permit for at least three states and pay Rs 5,000 to each state (Rs 3,000 in case of a Union Territory) he intends to operate into besides paying the tax to the home state. So, if he wants to get a national permit for five states, he will be required to pay Rs 25,000. If he is in MP and wants to enter the neighbouring Maharashtra, he cannot do so unless he has the permit for that state as well. The proposed system will free the transporters of all such restrictions.

The liberalised regime was to come into effect from May 1, but states require making certain changes in rules before they can switch over to the new system.

“Apart from this, we are still waiting for the notification in this regard from the Centre and we will decide on the date for the implementation of the proposed system as soon as we receive the notification,” Transport Commissioner Sudhir Srivastav told HT.

Srivastav on Saturday attended a meeting called by the Union Ministry for Surface Transport to thrash out various issues related to the new system. Unlike at present where truck operators deposit the bank drafts for the national permit fee in the home state, the system envisages setting up of a national fund for this.

The amount of fee payable to states will get automatically transferred to them from the fund. Authorities here believe that the liberalised system would give the much-needed push to the truck industry in the state and the country and increase competition among truckers.

“All this may result in lower freight charges benefiting consumers at large besides controlling the menace of overloading,” said a senior transport official.

Welcoming the new system, UP Truck Operators’ Association president Jagdish Chandra Gupta said, “Now we can operate in any state where we see business potential without any restriction.” According to him, the new regime would end the situation wherein accumulation of goods in warehouses was a common problem for want of a permit.

Another senior transport official, however, cautioned, “If the system does not work, the state’s revenue by way of national permit fee may decline.”

New system

Under the new system to come into effect shortly, a truck operator will have the liberty to operate in country in as many states as he wants to, provided he obtains the national permit by depositing just an annual fee of Rs 15,000.

Old system

At present, a truck operator has to take the national permit for at least three states and pay Rs 5,000 to each state (Rs 3,000 in case of a Union Territory) he intends to operate into besides paying the tax to the home state.