Boring units make a hole in Telangana coffers

Hyderabad: Contractors of irrigation projects and large stone-crushing units have increasingly been using ‘tunnel boring machine vehicles’ brought illegally from other states without paying registration charges to the Road Transport Authority (RTA). The boring machines are usually used to cut rock from hill required as construction material in irrigation projects, tunnel building and road projects, as also stone- crushing units that make concrete. A majority these vehicles are brought to Telangana, Andhra Pradesh, Karnataka and Chhattisgarh from neighbouring Maharashtra. The tunnel boring machines are brought from Western countries by importers in Maharashtra who register the vehicles at the RTA in the state after paying the necessary fees. But the vehicle end up being sold and used by contractors in other states.  

This causes a loss of revenue to RTAs in those states, given that the Motor Vehicle Act states that in cases vehicles are sold and used in other states, the buyers must take permit from the state RTA concerned after paying a registration fee. Contractors often sub-let these machines for a hefty rent. 

An official in the Road Transport Authority, Hyderabad, said that the permit tax is about 8 to 10 per cent on the total cost of the vehicle, but varies from state to state. Contractors of irrigation projects and large stone-crushing units have increasingly been using ‘tunnel boring machine vehicles’ brought illegally from other states without paying registration charges to the Road Transport Authority (RTA).

The boring machines are usually used to cut rock from hill required as construction material in irrigation projects, tunnel building and road projects, as also stone- crushing units that make concrete. A majority these vehicles are brought to Telangana, Andhra Pradesh, Karnataka and Chhattisgarh from neighbouring Maharashtra. The tunnel boring machines are brought from Western countries by importers in Maharashtra who register the vehicles at the RTA in the state after paying the necessary fees. But the vehicle end up being sold and used by contractors in other states.  

This causes a loss of revenue to RTAs in those states, given that the Motor Vehicle Act states that in cases vehicles are sold and used in other states, the buyers must take permit from the state RTA concerned after paying a registration fee. Contractors often sub-let these machines for a hefty rent. An official in the Road Transport Authority, Hyderabad, said that the permit tax is about 8 to 10 per cent on the total cost of the vehicle, but varies from state to state.