Restrictions to be imposed on use of vehicles leased to the state sector

A Cabinet paper will be submitted shortly to slash the number of vehicles leased for the use of  state officials and those in the Defence services following revelations that there was misuse of vehicles.

Accordingly the Government will impose fresh restrictions on use of leased vehicles following Cabinet approval in a bid to cut down state expenses.

This is after revelations that some of the officers were making use of two to three vehicles with few of them using up to six vehicles with some vehicles being used by family members.

 The Government has taken into consideration that the vehicles were being leased out at Rs 300,000 per monthly rental without taxes. Currently around 1000 vehicles have been leased and 400 of them are up for renewal 

 The government also plan to encourage public sector employees use their own vehicles or find their own mode of transport by increasing the existing allowance of Rs 50,000 per month.

Among the restrictions to be imposed would be the limitation on  petrol/Diesel allowance.  Accordingly they would be able only to make use of the fuel allowance given to them and would not be able to pump fuel from the quota for the Ministry or department they are serving in.

A restriction on the capacity of the vehicle too would be introduced.  Accordingly the highest capacity would be of 1600 CC  for Secretary level and 1200 CC for lower level officials while the move will prevent usage of luxury vehicles.