Wednesday, June 25, 2014

Corruption On Highways


The estimated number of registered commercial vehicles in India is about 70 lakhs. Estimated  - because nowhere on the Government websites     , I could find the current number. Out of these 70 lakhs vehicle at least 40lakh vehicle ply on long distances crossing one or more states.  Every such vehicle crosses on average two state borders every day.

Now the startling facts- at most of state borders there is an unofficial fixed payment called ENTRY. This amount varies on the basis of the vehicles capacity to carry the loads. In general the amount varies from Rs. 500 to Rs. 5000 depending upon vehicle capacity and nature of load. This amount is paid by every driver without any fuss to the concerned RTO. Non-payment or argument invites the invocation of all the rules of motor vehicle, which includes few which are not important and not followed by most of the vehicles. Example- Driver should wear proper shoes, the side mirror should be of standard type, there should be two drivers on each vehicle etc. The truck owners consider this payment as part of every trip’s cost. Hence this forms a part of overall cost of transportation.

Let us assess the astronomical sum involved in this racket. Out of 70 lakhs vehicle at least 40 lakhs vehicles ply on long distance everyday . Every long distance generally involves crossing of  two border check posts as it runs about 300 to 400 kilometers in a day. However let us take the average as one check post. Let us take the average payment as Rs. 100 as ENTRY for each vehicle for each entry.

The daily amount works out to Rs.100 x 40 Lakhs = Rs. 40 crores. Multiply it by 365, as vehicles run on all 365 days. The total amount involved is 14,600 crores. This is the tip of the iceberg. 

There are huge collections for the real violations- like overloading, over dimensions, document deficiency. That amount will run into several times of this basic figure worked out for almost no offence.

This booty gets divided between all levels, from bottom to top. Such payments forms the ultimate cost of each and every product which gets transported in the country. 

Do we need to look for the root cause of inflation elsewhere?

1 comment:

  1. In this article, I have highlighted just one aspect of Governmental corruption taking place in our country. I invite my readers to use the comment button at the bottom to add their feedback, experience in this regards. Also give your comments on this blog of mine. Thanks !

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