Dharamsala, February 22
The state Cabinet in its meeting held here today under the chairmanship of Chief Minister Prem Kumar Dhumal has approved a 25 per cent hike in bus fares, reduced VAT on liquor by 7.5 per cent, awarded three contracts of amounting to Rs. 431.134 crore for upgrading roads and created posts in various departments.
Briefing the media persons Ravi Dhingra chief secretary of the state said the state cabinet while approving the excise policy for the year 2008-2009 had decided to continue with the individual vend/unit based applications system for allotment of retail vends in the state. In another significant decision the government reduced VAT on liquor by 7.5 per cent from the existing 20 per cent to 12.5 per cent.
He said the state would register an over all increase of 10 to 12 per cent in excise revenue, which was estimated to be around Rs. 402 crore in the next financial year as compared to Rs. 360 crore (estimated) for the current year.
He said smuggling of liquor into the state was rampant due to lesser VAT rates of four, zero and four per cent in Punjab, Haryana and Chandigarh, respectively. This would help in reducing smuggling, he hoped.
It was decided to reduce the licence fee on Indian Made Foreign Liquor (IMFL) from Rs 160 to Rs 125 and on Country Liquor (CL) from Rs 130 to Rs 95 per proof litre. These measures would reduce the price per bottle of IMFL and CL by Rs 23 and 15, respectively.
Existing retail licensees who commit themselves to the new conditions of licence fee and other levies would be given the option to apply for renewal. This system had been preferred because the number of people employed (licensees) in the liquor trade had gone up to 625 during the current year, whereas, earlier this trade was monopolized by 25 persons in the entire state.
It was also decided to reserve 20 per cent of the quota of country liquor for the state government undertakings. The concern of the licensees regarding blockage of funds on account of security amounts to 10 per cent was also discussed by allowing the refund of this security after March 1 subject to payment of all dues for the year by the licensees. The norms regarding sureties were kept unchanged.
In another significant decision, the
cabinet also approved a hike in bus fares by 25 per cent. Although the transport department demanded a hike of 59 per cent in bus fares to bail out HRTC from the financial crisis but after hectic discussion the cabinet in a unanimous decision approved only 25 per cent hike in public interest.
As per decision, the fares would be 92 paisa per km, per person, in the hills and 59.38 paisa per km, per person, in the plains. With this hike, the HRTC would earn an extra income of Rs 54 crore per year. This hike would be applicable from the date of notification by the government.
Further, the Cabinet approved three contracts of Rs 431.134 crore to upgrade 172 km length of roads including the Una-Barasar road (45 km), Barsar-Jahu Road (46 km), Theog- Kotkhai- Hatkoti-Rohru road (81 km). This project has been funded by the World Bank.
The contract Theog-Kotkhai-Hatkoti-Rohroo road has been awarded to a Chinese firm, whereas, Una-Barsar-Jahu roads contract has been given to a local firm. These contracts were in addition to the contract of Mehatpur-Una- Amb road, which had already been allotted for a sum of Rs 126.50 crore.
In addition to the above, the periodic maintenance works of about 532 km of various roads amounting to Rs 45.20 crore under Tranche-I and 515 km amounting to Rs 68 crore under Tranche-II has also been approved as part of the core road network maintenance.
Other decisions include grant of Rs 3330-6200 pay scale to 13 homeopathic compounders on Punjab pattern; regularise services of 82 daily wagers (class-IV) in the Dr. Y.S. Parmar University of Horticulture and Forestry, Nauni (Solan), and 11 daily wagers (class-IV) of Health and Family Welfare Department; granting exemption from providing three per cent reservation to disabled persons in direct recruitment of class-III and class-IV technical posts in the department of mountaineering and allied sports (Manali); upgraded 19 posts of pharmacists to chief pharmacists in Ayurveda Department; sanctioned creation of 113 posts of registrars in the medical colleges (69 in IGMC Shimla and 64 in RPMC Tanda), eight posts of associate professors and assistant professors each and upgrading two posts of assistant professor to associate professor in the IGMC Shimla.
