Get ready to pay premium to own a new car

Get ready to pay premium to own a new car

Anil Kumar Sastry

Authorities mull over introducing quota system to own new cars in Bangalore

— Photo: Sampath Kumar G.P.

A nightmare: A file picture of traffic jam on one of the roads in Bangalore.

BANGALORE: If you are aspiring to buy a new car, better to buy one immediately. For, soon you may have to pay a premium to own a new one in the Bangalore Metropolitan Region (BMR). The authorities are thinking of introducing “car rationing” or auctioning the right to own a new car aimed at decongesting the city roads plagued by ever-increasing traffic.

A proposal to this effect was made by Bangalore Metropolitan Transport Corporation (BMTC) to the Bangalore Metropolitan Land Transport Authority (BMLTA), the umbrella organisation to regulate all kinds of road transport (except the Railways) in BMR. The BMLTA is seeking expert opinion on the issue.

Apart from suggesting introduction of quota system for cars, the BMTC has proposed to levy congestion tax for private vehicles which enter and ply in congested areas of the city.
Singapore model

The suggestions are based on the Singapore model, which had enforced ownership control and user restriction. Adopted in 1990, the quota system aims at controlling ownership and increase in personal vehicles. Open tenders are invited twice a month to auction ownership rights and the “certificate of entitlement” is valid for 10 years.

Also, area licensing system with electronic road pricing was adopted to regulate entry of private vehicles into the central business district. Vehicles are fitted with electronic cards and entry points at restricted zones have sensors to read the card.

Congestion charge gets deducted from vehicle owner’s bank account once the vehicle enters the restricted zone. With these measures, congestion in the CBD is under control despite there being an increase in the number of vehicles.

The number of cars registered and kept in use in BMR has increased from 21,760 in 1976 to five lakh in 2007. Since 2004, more than 40,000 cars were added every year. On an average, 200 new cars are registered daily in 10 Regional Transport Offices across the BMR.

Those registering new cars outside Bangalore and using them in BMR will have to pay entry tax. If the car is found being used in the city for long, the owner will have to pay the congestion charge, the proposal said.

Reacting to the proposal, K.S. Satyavratha, a businessman, termed it ridiculous. “For me, car is a necessity and a way of life since I have good income and want to lead a decent life. The ‘permit raj,’ the other way to corruption, in a democratic set-up has become irrelevant. Let the Government provide sufficient infrastructure to take the increasing burden of vehicles.”

Transport Commissioner M. Lakshminarayana said the issue was still in proposal stage. Any decision had to be taken at the highest level; he said and added that that there were many issues to be looked into. One of the issues would be revenue to the Government through registration tax. The other would be how to check outside vehicles being used in BMR.
Gain to society

However, advocates in favour of public transport argue that the Government should take into account the long-term gains instead of short-term ones. Less number of private vehicles on roads means less number of accidents and less air pollution, which profoundly contribute to social health.