The Hindu Business Line : States told to take up reforms in transport sector

"The States need to bring reforms that included rationalisation of taxation favouring public transport and policies to encourage quality of service in public transport"

Hyderabad , Aug. 28

The Union Ministry of Shipping, Road Transport and Highways will shortly approach the Planning Commission to provide additional financial support to States if they agreed to undertake reforms in the transport sector.

Reforms advocated

Announcing this here on Saturday, Mr T. R. Baalu, who is holding the portfolio, said the States needed to bring reforms that included rationalisation of taxation favouring public transport and policies to encourage quality of service in public transport.

The assistance to States would start after signing a memorandum of understanding with the Centre.

The Minister was addressing a national seminar on `Need of public transport in the present scenario' which was attended by representatives of various State transport utilities and workers' unions.

The Union Government is convening a national meet on the transport sector at Shimla on September 5 to discuss various issues relating to the sector. Transport ministers, top officials of States and representatives from transport utilities would also take part.

Mr Baalu asked Mr M.R. Sreenivasa Murthy, Vice-Chairman and Managing Director of Karnataka Road Transport Corporation and spokesman for all public transport utilities in the country, to submit a detailed proposal on his proposals at the Shimla meet.

Mr Murthy earlier called for creation of a national level fund on the lines of RIDF (Rural Infrastructure Development Fund) to assist bus acquisition plans of utilities. He also raised issues of tax burden and sought Minister's help in resolving them.

Problems

Some of the issues that dogged public transport were lack of convergence of transport planning and land use, inadequate and poor quality of public transport and taxes and levies favouring personalised transport.

He also pointed out that while personal vehicles could go to any place without any restrictions, buses crossing the border of a State needed permits.

Later speaking to reporters, Mr Baalu said reforms were must to make the utilities run efficiently. While stating that loss making could not be tolerated, he said a public transport utility should be run viably.

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