Automated Testing Stations To Help Improve Road Safety, Quality: Report

PHD Chamber of Commerce and Industry (PHDCCI) along with Ernst & Young (EY) has released a report titled ‘Driving towards Efficiency: The Transformative Potential of Automotive Testing Stations in India’. PHDCCI says the private sector is expected to play a crucial role in setting up the Automated Testing Stations (ATS) network in India for vehicle fitness certification. 

The report outlines that to address the issues of rising pollution levels and increasing road accidents due to the growing vehicular population, the Ministry of Road Transport & Highways (MoRTH) has amended the Central Motor Vehicles Act, 1989. The amendments include provisions for ATS which PHDCCI says can improve fuel efficiency, road safety, air quality and capacity building. 

Furthermore, the report references vehicle fitness testing policies used abroad such as the United Kingdom’s Ministry of Transport (MOT) testing, Japan’s vehicle inspection system and the European Union’s roadworthiness package. 

The report also outlines that certain financial feasibility concerns can affect the successful implementation of ATS in India. These concerns can be related to a deficit in cash flow as well as numerous regulatory issues. 

The financial simulation of the ATS was conducted using a standard two-lane model where the revenue was estimated mainly using a standard two-lane model, with revenue estimated to come from testing fees. The majority of the expenses were estimated based on capital expenditure, land, loan interest and workforce. 

The report aims to mitigate the challenges in the ATS regime, be it financial or regulatory. For the former, the report suggests granting subsidies on capital expenditure, revenue augmentation through revised fees, alternate incentives, customs duty waiver and more. 

Regulatory challenges can be mitigated by including non-transport vehicles for annual/biennial testing, bringing testing frequency on par with global practices, coordinated action between union and state, as well as effective enforcement through fines. It also suggests revising testing fees every three years.