The Jammu and Kashmir government Saturday approved a subsidy scheme for replacement of 500 old diesel vehicles operated by private transporters in the state, an official spokesman said.
The state administrative council (SAC), which met under the chairmanship of Governor Satya Pal Malik, approved the 'Jammu and Kashmir Transport Subsidy Scheme' for replacement of 500 old diesel vehicles operated by private transporters including buses, matadors and mini buses, the spokesman said.
He said the scheme has been conceived in light of the budget 2019-20 announcements with Rs 25 crore earmarked for the purpose.
The spokesman said the scheme will be first implemented in Srinagar and Jammu cities by replacing 250 old diesel vehicles each in the twin capitals by modern buses which are eco-friendly, comfortable, fuel efficient and fitted with modern safety gadgets i.e compliant to Bharat Stage (BS)-IV and above norms.
The Transport Department in consultation with the Finance Department will propose a standardized procedure to be followed for replacement of the vehicles, he said.
The spokesman said the applicant, after approval, would be allowed a three months' time to purchase the new vehicle after entering into a loan agreement with the bank concerned and the subsidy component shall be given on capital investment after purchase of vehicle and its subsequent registration.
The scheme of extending subsidy to the transporters shall have many consequential benefits in terms of curtailing air pollution in the twin capital cities amidst rising car ownership and in reducing traffic congestion by providing impetus to the public transport system, he added.