Rs 20-cr study to finalise congestion tax model

  • 10/07/2011

  • Pioneer (New Delhi)

Unable to find a clear line about the mode of congestion tax, the Delhi Government is all set to conduct a costly study to levy/tax on congestion in the national Capital. As per the proposal, the study that will cost Rs 20 crore will be completed in nine months. The policy could be implemented through Build Operate Transfer (BOT) method. The congestion charge is one of the models adopted by European cities to address unwanted growth in the number of vehicles to control congestion on roads. A special task force appointed by the Delhi High Court had recommended the imposition of congestion tax (depending on locality) to restrict the number of private cars in the national Capital. The task force also advised transport department to carry out a feasibility report on congestion charge in Delhi. The idea of imposing congestion tax is borrowed from Singapore, Durham, London, Shanghai and Tokyo. The Delhi Government is finding it difficult to control vehicular traffic on the road. Lack of parking space and increasing number of cars have added to traffic policing woes in the Capital. According to traffic police data, 600 new cars add to the Capital road daily. The finding of the Centre for Science and Environment (CSE) reveals there has been a 132 per cent increase in the number of cars in the past 10 years, whereas, the total road length has increased just 20 per cent in the same period. There are more than 56 lakh registered vehicles in Delhi, which is more than that in Mumbai, Kolkata and Chennai put together. Beside this, almost 75 per cent of the road space is hogged by four and two-wheelers, although they meet just 20 per cent of the commuting demand. The draft report on congestion tax, prepared by the Administrative Department, states that the congestion tax model has been there in place in many countries on BOT basis where an agency is selected to operate the system and all capital investments are made by that agency, which recovers its investment as percentage of revenue receipts.