Modi Government Imposes Price Cap For Military Officers Buying Discounted Cars Through Canteen Stores Department
Starting from 1 June, serving and retired military personnel can purchase cars through CSD worth up to only Rs 12 lakh.
New Delhi, May 30: In what is being widely seen as yet another “perk” being withdrawn from the armed forces, the Modi government has imposed a price cap for military personnel buying vehicles from the subsidised Canteen Stores Department (CSD). According to an order issued by the Army’s Quarter Master General (QMG) branch, serving and retired officers can now purchase a car from CSD only once in eight years.
Starting from 1 June, serving and retired military personnel can purchase cars through CSD worth up to only Rs 12 lakh. The vehicles should have an engine capacity of up to 2,500 CC. So far, there was no limit on the capacity or price of vehicles that could be purchased through the CSD. Similar restrictions have been enforced for serving civilian officers in defence establishments. Indian Army Recruitment Drive in Jammu & Kashmir’s Doda District Attracts Over 2,000 Kashmiri Youth.
Under new norms, just one vehicle can be bought in eight years. Earlier, officers could purchase one car in four years. Once the new rules kick in, other ranks or soldiers will be able to buy a car up to 1400 CC costing up to Rs 5 lakh, excluding GST. They can make a purchase once during service and once after retirement. Permanent Commission Granted to Women Officers in Indian Army: Defence Ministry.
On purchase of a vehicle through CSD, a military officer can save up to Rs 50,000 because the government gives 50 per cent rebate on the GST on them after reduced prices are negotiated with the automobile manufacturer.
The Indian Ex-Servicemen Movement (IESM), which is leading the campaign for One Rank, One Pension (OROP), has written to the Army headquarters, seeking withdrawal of new norms.
"The MHA (Ministry of Home Affairs) has put no such restriction on CPOs (Central Police Organisation) for the purchase of car [sic]. Defence Personnel feel that they are being degraded, downgraded and ill-treated as compared even to the CPOs in their socio-economic status," the IESM has written in its letter.
(The above story first appeared on LatestLY on May 30, 2019 02:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).