Shimla, Jan 7 (PTI) Himachal Pradesh Deputy Chief Minister Mukesh Agnihotri on Tuesday raised key issues concerning the transport sector in the state and proposed that the scrapping incentives be provided as grants instead of loans to ease the financial strain.

Participating in the national-level meeting of transport ministers and 42nd meeting of Transport Development Council held under the chairmanship of Union Minister for Road Transport and Highways Nitin Gadkari at New Delhi, Agnihotri raised several important issues concerning the transport sector in Himachal Pradesh and sought the central government's support in addressing them.

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He also raised the issue of the financial burden of the Vehicle Scrapping Policy as Himachal faces significant challenges due to its hill topography and sparse vehicle population, making the assembly of vehicles for scrapping both costly and cumbersome, a statement issued here said.

Agnihotri highlighted that the state would require scrapping over 7,000 government vehicles which would impact the functioning of key state departments.

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Therefore, a more favourable financial assistance structure was requested to ensure the smooth implementation of the scrapping policy.

He also discussed the challenges posed by the All India Tourist Permit (AITP) buses operating within Himachal Pradesh. These AITP buses are operating in the state as stage carriage buses though having contract carriage permits. There is a huge difference in the quantum of taxes between AITP and stage carriage.

He urged the Central Government to create a level playing field for AITP buses and stage carriage buses, as this disparity was leading to unfair competition, especially harming the State Transport Undertakings (STUs) and suggested that clear regulations and guidelines be put in place to ensure fair competition and curb the misuse of space by AITP operators.

Informing that the Himachal government was developing the country's largest urban ropeway network project at a cost of Rs 1,734.70 crore in Shimla, he said that work on this project is likely to start by June this year and will be completed within a period of five years. The project would improve public transport and help reduce traffic congestion and pollution.

Agnihotri said that though the Goods and service tax (GST) on ropeway travel had been reduced from 18 to five per cent, the Input Tax Credit had not been allowed by the Ministry of Finance, whereas it was recommended by the fitment Committee of the GST Council.

The inclusion of Input Tax Credit (ITC) on passenger traffic would also reduce the capital cost of ropeway infrastructure, he added.

Nitin Gadkari assured that he was aware of the situation and that the interests of hilly states along with Union territories would be protected. In response to these concerns, Nitin Gadkari assured that the central government would carefully consider the issues raised by Himachal Pradesh and other states.

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