Govt likely to amend rules for monetisation of transport facility

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The Cabinet Division is likely to amend rules for monetisation of transport facility so as to exclude contractual civil servants working in BS-20 to BS-22 from the list of beneficiaries of the policy when it comes to purchase of entitled car on depreciated price. According to the policy, civil servants in BS-20 to BS-22 who have been provided the official transport may be given the first option to purchase the allocated car on depreciated price. Per the prescribed formula, the depreciated price of a vehicle is calculated by depreciating the original price of the vehicle at the rate of 15 percent for the first year and 10 percent for the subsequent years.
However, keeping in view the existing condition of vehicle that is extensively used, it has been decided to allow 15 percent depreciation for each completed year of life of the vehicle. According to the formula per 15 percent depreciation, a 2006 model Toyota Corolla car had a price tag of Rs 870,000, but if a civil servant retires in 2011, he can purchase the same car for Rs 386,025. According to the sources in the Cabinet Division, the section officer dealing with the implementation on the policy which is going to be implemented from January 1, 2012 has verbally asked the contractual officers not to initiate any process for purchase of the car, saying the division was going to amend the rules so as to exclude them from the beneficiaries’ list.