All India permit can be obtained for a composite fee of Rs.15,000

A new composite fee regime for national transport permits will come into force on Monday. Apart from liberalising inter-State goods transport, the move is expected to increase competition among operators, thus benefiting the end consumers.

Till now, national permits had to be obtained by paying Rs.5,000 to each State a transporter wants to operate in. According to the new system, an All India permit can be obtained for a composite fee of Rs.15,000.

Transport Commissioner S. Machendranathan said: “The new regime will simplify procedures and goods operators will also be spared of unnecessary hassles.”

For ensuring seamless travel, integrated check posts would be set up. It would take care of different kinds of taxes to be levied, only at the entry point of the State concerned.

P.V. Subramani, president, Chennai Goods Transport Association, said, “We can operate wherever the freight volume is good. Earlier, operations had to be limited to States where a permit has been obtained.”

According to him, apart from eliminating procedural problems, the new regime would put an end to accumulation of goods in warehouses due to “permit problem.” He said that driver shortage and the lack of a permit to operate anywhere in the country resulted in an average backlog of 30 per cent of goods.

“Since more vehicles will ply, commodity prices will come down due to competition,” he added.

M .Jayapalan, vice-president, Red Hills Paddy and Rice Wholesale Merchants Association, said that since anyone could operate on any route, delivery promptness would improve. “Consumers will benefit through a marginal decrease in cost and the effect of strikes might also be minimised.”