Maharashtra Govt To Pay Rs 504 Crore To Private Firm Before Shutting 22 RTO Checkposts
Maharashtra Govt To Pay Rs 504 Crore To Private Firm Before Shutting 22 RTO Checkposts
Chhatrapati Sambhajinagar: The Maharashtra government will need to pay Rs 504 crore in compensation to a private firm before it proceeds with the closure of 22 RTO border checkposts, an official statement said on Sunday.
The private company was originally contracted to implement an ‘Integrated Check Post’ project for the state’s transport and customs departments. Under the agreement, the firm was responsible for operating and maintaining the infrastructure at these checkposts.
With the state now deciding to shut down these facilities, the government must compensate the company for its investment, Transport Minister Pratap Sarnaik said. “However, after paying this amount, the related technology and immovable assets will become the property of the transport department,” the release clarified.
Sarnaik added that the transport department has sent a proposal to the chief minister’s office and the closures will be carried out once the approval is granted.
The move comes in response to a September 2021 communication from the Union Ministry of Road Transport and Highways, which had advised states that routine checkposts were redundant following the implementation of GST in July 2017. Maharashtra is now set to join 18 other states in transitioning to a fully digital and paperless transport monitoring system.
“This decision aligns with the central government’s Ease of Doing Business initiative. It will greatly benefit transporters and enhance road safety,” Sarnaik stated.
