Rural entrepreneurs can now buy passenger vehicles at a 40% cheaper price under the Narendra Modi government’s proposed transportation scheme aimed to connect the country’s vast hinterlands seamlessly.

The prices of popular vehicles in rural service range from Rs 2.5 lakh to Rs 4.5 lakh. A subsidy of 40% on  Rs 2.5 lakh vehicle would mean that the ex-showroom price will come down by Rs 1 lakh.

“After several rounds of discussions, we have decided to give a one-time subsidy as a viability-gap-funding for the vehicles. A 40% subsidy, keeping in mind the normal swing in fuel costs, can keep the cost of running the vehicle at Rs 1/km,” said a senior rural development ministry official.

As the government wants to give the highly disorganised rural transport sector some shape and regulation, it has identified 11 vehicles, including, Maruti Eeco, Mahindra Maxximo and Supro and Tata Magic, which will attract its financial support

“Even an e-rickshaw can get a subsidy. The choice of vehicle will depend on the owner on the basis of the local requirements. Priority will be given to women self-help groups, Dalit or tribal villagers,” said the official.

In his budget speech this year, finance minister Arun Jaitley had said that the government would enact necessary amendments in the Motor Vehicles Act and open up the road transport sector in the passenger segment.

After spending thousands of crores of rupees every year on rural roads, the Centre wants their better capacity utilisation. The scheme can also generate skill development and shift the focus from MGNREGA as the main source of livelihood in distress.

Reference: Hindustan Times

Tags: Arun JaitleyNarendra ModiPrime ministerprime minister gramin parivahan yojna