M'rashtra mulls cess to restrict private vehicles

The Maharashtra government is planning to introduce a cess aimed at restricting the number of private vehicles in India's financial capital.

That the government is considering a 'congestion tax', on the lines of one in London, was indicated by chief minister Vilasrao Deshmukh, during his recent meeting with a World Bank delegation here.

Deshmukh told World Bank country director for India Isabel Guerrero that it was becoming increasingly difficult to maintain order on the city's roads as the number of private vehicles continued to rise, putting existing infrastructure under strain, a state government official said.

Around 600 new vehicles are registered in Mumbai every day, the chief minister said. Deshmukh also spoke about exploring options like elevated traffic corridors to improve the traffic situation.

The state government will need around Rs 2.50 lakh crore to improve the city's infrastructure which is creaking under the growing burden, the official quoted Deshmukh as saying.

In London, the entry of vehicles into the central business district attracts charges. To implement the plan in Mumbai would mean regulating the movement into various zones, of around 12 lakh vehicles which ply on the city roads everyday, the official said.

If the congestion tax proposal is implemented, it may result in making a trip in private vehicles to the city centre a bit expensive.

However, the proposal is at present only at the discussion stage and the government is yet to finalise the proposed tax structure, he said.