Shri Mukesh Agnihotri Raises Key Issues at National Transport Ministers' Meeting under Shri Nitin Gadkari's Chairmanship

New Delhi (The Uttam Hindu): Shri Mukesh Agnihotri, the Deputy Chief Minister and Transport Minister of Himachal Pradesh, attended the National Transport Ministers' meeting and the 42nd meeting of the Transport Development Council held in New Delhi on January 7, 2025. The meeting, chaired by Hon'ble Union Minister for Road Transport and Highways, Shri Nitin Gadkari, focused on crucial issues in the transport sector. During the meeting, Shri Agnihotri highlighted several pressing concerns related to the transport sector in Himachal Pradesh and sought the central government's support to address these challenges.

One of the main issues raised by Shri Agnihotri was the financial burden of the Vehicle Scrapping Policy. Due to the state's topographical challenges and sparse vehicle population, Himachal Pradesh faces significant hurdles in vehicle scrapping, making it both expensive and difficult to assemble vehicles for scrapping. Shri Agnihotri requested an extension of the deadline for availing the Special Central Assistance (SCA) for capital investment until March 31, 2025. He also proposed that the scrapping incentives be provided as grants instead of loans to alleviate the financial strain on the state. Furthermore, he highlighted the state's need to scrap over 7,000 government vehicles, which could disrupt the functioning of key state departments. Shri Agnihotri called for a more favorable financial assistance structure to ensure the effective implementation of the scrapping policy. Shri Nitin Gadkari assured that the interests of hilly states, including Himachal Pradesh and union territories would be safeguarded.

Shri Agnihotri also raised concerns regarding the All India Tourist Permit (AITP) buses operating within Himachal Pradesh. These buses, which have a Contract Carriage permit (AITP) are functioning as Stage Carriage buses, resulting in a significant tax disparity between AITP and Stage Carriage buses. Shri Agnihotri urged the central government to create a level playing field between the two types of buses, as the current disparity is harming the State Transport Undertakings (STUs). Additionally, he pointed out the issue of AITP private operators occupying space at bus stands, enabling them to function as Stage Carriage operators. He proposed the establishment of clear regulations and guidelines to ensure fair competition and prevent misuse of space by AITP operators. Shri Gadkari assured that the matter would be thoroughly discussed in the upcoming meeting of the Committee of All State Secretaries, led by the Secretary of MoRTH.

Furthermore, Shri Agnihotri called for changing the incentive structure for scrapping non-government-owned vehicles at Registered Vehicle Scrapping Facilities (RVSF) in the state, as no such RVSF is currently operational in Himachal Pradesh. The Deputy Chief Minister also highlighted the state's initiative to develop an Urban Ropeway Network Project, which will be the largest ropeway network in India and the second-largest in the world, following Bolivia. The project, estimated at ₹1,734.70 crore, is expected to commence by June 2025 and will be completed within five years. This project is poised to significantly enhance public transport in the state, reduce traffic congestion, and minimize pollution. While the GST on ropeway travel was reduced from 18% to 5% at the request of the Himachal Pradesh government, Shri Agnihotri noted that the Ministry of Finance has not allowed the Input Tax Credit (ITC), which was recommended by the GST Council's Fitment Committee.

He stressed that the inclusion of ITC on passenger traffic would help reduce the capital cost of ropeway infrastructure. Shri Gadkari acknowledged the validity of the issue raised by Shri Agnihotri and suggested that the matter be addressed separately. Additionally, Shri Agnihotri urged the central government to support the development of common electric infrastructure for State Transport Undertakings (STUs), particularly along key routes like Chandigarh-Delhi, to facilitate the transition to electric mobility and enhance operational efficiency. In response to these concerns, Shri Nitin Gadkari assured that the central government would give careful consideration to the issues raised by Himachal Pradesh and other states. He emphasized that the Ministry of Road Transport and Highways (MoRTH) is committed to providing the necessary support in areas such as vehicle scrapping, infrastructure development, and the promotion of cleaner and more sustainable transport solutions.