Citing the necessity to amend a few provisions in the existing Company Act to bring the large transport associations and committees under the company format, the government has today extended the deadline for the transport bodies – for the second time – to register themselves as a company till mid-March.
Though the government has decided – a few months ago – to end transport cartel, it has failed to implement the decision, presumably under pressure from transport entrepreneurs, and extended the deadline.
The three-month extension allows them to continue operating as committees, which means the public transport operators will run its cartel until then, though the government has promised an amendment in the Companies Act to insert a special provision for the existing bus operator committees to register as companies even if a committee is run by more than 101 individuals.
However retired secretary at the Ministry of Physical Infrastructure and Transport Tulasi Prasad Sitaula claimed that both the changes in the law were unnecessary. "This raises questions as to why should they be allowed to run a company with so many members," he said, adding, "No company requires that many number."
A joint meeting of three ministers – transport minister Raghuvir Mahaseth, industry minister Matrika Prasad Yadav and home minister Ram Bahadur Thapa – decided to allow them to run as bus operator committees for more three months on Thursday, only two days before the Dec 16 deadline.
According to director general at Department of Transport Management, the deadline has been extended for the final time. "The extension is basically intended to address a few concerns raised by the transport entrepreneurs," he said, adding that transport entrepreneurs had last week ‘officially’ agreed to switch to the company model but had set a few preconditions that include transferring transport bodies’ movable and immovable properties, including their vehicles and staffs to the new company.
By scrapping the registration of transport bodies including transport committees and associations earlier in April, the government had claimed that it would not renew their registration from mid-July, if they failed to transform into the company modal. But the the government’s recent decision – for the second time – to extend the deadline for transport bodies to register themselves as company reflects government’s unwillingness to illegalise transport cartel.
The government move was, however, intended not only to end the monopoly of transporters in the public transportation sector and ensure its growth, but also to bring public transport sector, which makes billions worth transactions annually, under the income tax net of the government. The company model was also introduced to bring the transport operators into tax net, formalise the transport service sector, stop them from manipulating the services, and make public transport a properly organised system.
Publishing a notice a week ago, the department has informed that public vehicles that have not been registered with the department under the company model will not be allowed to ply the roads from December 16. However, going against its own decision to end transport cartel, the department has once again extended the deadline to register themselves into company till mid-March.
According to the department, only around 10,000 public vehicles – of the total 1,500 transport bodies – out of more than 200,000 public vehicles across the country have registered with the department under the company model so far.
The government’s move earlier this year was resisted by the bus operators, who defied the government’s announcement to convert them into companies. They called strikes and the public transport services came to a grinding halt.
Home Minister Ram Bahadur Thapa had led a move to arrest the operators for obstructing essential public service, and ordered seizing bank accounts of the transport committees, though tye resisted to the government move. But the committees surrendered to the government and promised to convert themselves into companies when their bank accounts were frozen. They were given a deadline of doing so until mid-July, but the government later extended it to December 16.
Though the government has decided – a few months ago – to end transport cartel, it has failed to implement the decision, presumably under pressure from transport entrepreneurs, and extended the deadline.
The three-month extension allows them to continue operating as committees, which means the public transport operators will run its cartel until then, though the government has promised an amendment in the Companies Act to insert a special provision for the existing bus operator committees to register as companies even if a committee is run by more than 101 individuals.
However retired secretary at the Ministry of Physical Infrastructure and Transport Tulasi Prasad Sitaula claimed that both the changes in the law were unnecessary. "This raises questions as to why should they be allowed to run a company with so many members," he said, adding, "No company requires that many number."
A joint meeting of three ministers – transport minister Raghuvir Mahaseth, industry minister Matrika Prasad Yadav and home minister Ram Bahadur Thapa – decided to allow them to run as bus operator committees for more three months on Thursday, only two days before the Dec 16 deadline.
According to director general at Department of Transport Management, the deadline has been extended for the final time. "The extension is basically intended to address a few concerns raised by the transport entrepreneurs," he said, adding that transport entrepreneurs had last week ‘officially’ agreed to switch to the company model but had set a few preconditions that include transferring transport bodies’ movable and immovable properties, including their vehicles and staffs to the new company.
By scrapping the registration of transport bodies including transport committees and associations earlier in April, the government had claimed that it would not renew their registration from mid-July, if they failed to transform into the company modal. But the the government’s recent decision – for the second time – to extend the deadline for transport bodies to register themselves as company reflects government’s unwillingness to illegalise transport cartel.
The government move was, however, intended not only to end the monopoly of transporters in the public transportation sector and ensure its growth, but also to bring public transport sector, which makes billions worth transactions annually, under the income tax net of the government. The company model was also introduced to bring the transport operators into tax net, formalise the transport service sector, stop them from manipulating the services, and make public transport a properly organised system.
Publishing a notice a week ago, the department has informed that public vehicles that have not been registered with the department under the company model will not be allowed to ply the roads from December 16. However, going against its own decision to end transport cartel, the department has once again extended the deadline to register themselves into company till mid-March.
According to the department, only around 10,000 public vehicles – of the total 1,500 transport bodies – out of more than 200,000 public vehicles across the country have registered with the department under the company model so far.
The government’s move earlier this year was resisted by the bus operators, who defied the government’s announcement to convert them into companies. They called strikes and the public transport services came to a grinding halt.
Home Minister Ram Bahadur Thapa had led a move to arrest the operators for obstructing essential public service, and ordered seizing bank accounts of the transport committees, though tye resisted to the government move. But the committees surrendered to the government and promised to convert themselves into companies when their bank accounts were frozen. They were given a deadline of doing so until mid-July, but the government later extended it to December 16.
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