Mukesh Agnihotri, the Deputy Chief Minister and Minister of Transport of Himachal Pradesh, participated in the National-level meeting of Transport Ministers and 42nd meeting of Transport Development Council held under the chairmanship of Hon’ble Union Minister for Road Transport and Highways, Nitin Gadkari on 7-1-2025 at New Delhi. During the meeting, Agnihotri raised several important issues concerning the Transport sector in Himachal Pradesh and sought the central government’s support in addressing them.
Agnihotri raised the issue of financial burden of the Vehicle Scrapping Policy. Himachal Pradesh faces significant challenges due to its topographical location and sparse vehicle population, making the assembly of vehicles for scrapping both costly and cumbersome. Agnihotri requested an extension of the deadline for availing the Special Central Assistance (SCA) for capital investment until March 31, 2025, and also proposed that the scrapping incentives be provided as grants instead of loans to ease the financial strain on the state.
He highlighted that Himachal Pradesh would be required to scrap over 7,000 government vehicles, which would impact the functioning of key state departments. Therefore, a more favorable financial assistance structure was requested to ensure the smooth implementation of the scrapping policy. Nitin Gadkari assured that he is aware of the situation and the interests of Hilly States alongwith Union territories would be protected. Agnihotri urged the Central Union Minister to extend the date for seeking incentive under ATS and Scrapping of vehicles from 31st January to to 31st March. Nitin Gatkari took cognizance of the matter and said that the matter is under consideration.
Agnihotri 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 permit (AITP). There is huge difference in quantum of taxes between AITP and Stage Carriage. The Deputy Chief Minister urged that the Central Government to create a level playing field for AITP buses and Stage Carriage buses, as this disparity is leading to unfair competition, especially harming the State Transport Undertakings (STUs).
He also raised concerns about the allocation of space to AITP private operators in Bus stands, which effectively allows them to function as Stage Carriage operators, further exacerbating the challenges for STUs. Agnihotri suggested that clear regulations and guidelines be put in place to ensure fair competition and curb the misuse of space by AITP operators. Nitin Gadkari stated that the issue would be deliberated thread bound in the meeting of Committee of the All State Secretaries headed by Secretary(Morth), Government of India.
Additionally, the Deputy Chief Minister called for the Incentive for scrapping of Non-Government owned vehicle at RVSF ( Registered vehicle scrapping facility ) established in the respective State should be changed as to any RVSF ( As no RVSF is presently functional in the State).
Agnihotri stated in the meeting that H.P. Government is developing an Urban Ropeway Network Project at a cost of Rs. 1734.70 cr. which will be India’s first largest ropeway network and second largest in the world after Bolivia. The work on this project is likely to start by June,2025 and will be completed within a period of 5 years. This project, would significantly improve public transport in the state and help reduce traffic congestion and pollution.
Agnihotri stated that though the GST on Ropeway travel has been reduced from 18% to 5% in 45th meeting of GST Council on the request of H.P. Government, but the Input Tax Credit has not been allowed by the Ministry of Finance, whereas it was recommended by the fitment Committee of GST Council, The inclusion of Input Tax Credit (ITC) on passenger traffic would also reduce the capital cost of Ropeway Infrastructure. Nitin Gadkari stated that the issue raised by Agnihotri is genuine and asked Agnihotri to take up this matter separately with him for settling this issue.
Furthermore, Agnihotri urged the Central Government to support the creation of common electric infrastructure for State Transport Undertakings (STUs), particularly on key routes like Chandigarh-Delhi, to promote the transition to electric mobility and improve operational efficiency.
In response to these concerns, Nitin Gadkari assured the gathering that the central government would carefully consider the issues raised by Himachal Pradesh and other states. He emphasized that the Ministry of Road Transport and Highways (MoRTH) is committed to providing necessary support to address these challenges, particularly in the areas of vehicle scrapping, infrastructure development, and the promotion of cleaner, more sustainable transport solutions.
Agnihotri’s proactive interventions in the meeting reflect Himachal Pradesh’s commitment to addressing the pressing issues in the transport sector and working collaboratively with the central government to ensure the state’s transport system is efficient, sustainable, and fair.
Central Government Assures Support for Himachal’s Transport Overhaul
