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Storm over CSD ‘curbs’ on car sale

Vijay Mohan

Tribune News Service

Chandigarh, May 26

A letter floating on social media that states that vehicles priced above Rs 12 lakh would no longer be available for purchase through the Canteen Stores Department (CSD) has kicked up a storm, with satirical jibes and messages flaying the move doing the rounds.

According to the letter by the Quartermaster General’s Branch at Army Headquarters on May 24, only vehicles with a capacity of up to 2,500 CC and costing up to Rs 12 lakh (excluding GST) would be available through CSD for armed forces personnel in the pay level of 10-18.

The frequency of purchase has also been reduced to one vehicle in eight years. Earlier, there was no limit on capacity or price of vehicles that could be purchased through the CSD. The frequency was also once in four years.

Those in the pay level of 3A to 9 can purchase vehicles up to 1,400 CC with a price not exceeding Rs 5 lakh. The periodicity for this bracket is purchase once during service and once after retirement, with the gap being eight years.

For civilian officers paid out of defence estimates, the same rules apply as those for armed forces officers. The new rules are applicable from June 1.

While many officers are questioning the rationale for the move, official sources said that restrictions were necessary to regulate and balance the CSD budget since a major part of the budget was being directed towards cars and other high-value items.

Changes in CSD policies that extended CSD facilities to retired defence civilians as well as entitled personnel below officer rank to purchase cars have added to the budgetary pressures.

The restrictions also place armed forces personnel at a disadvantage vis-à-vis the Central Armed Police Forces personnel as well as those of the Central and state police organisations, who can avail facilities of the Central Police Canteen (CPC) organisation.

Managed by the Ministry of Home Affairs, the CPC does not place any kind of restriction on the vehicles. cubic capacity or costs according to rank. The periodicity for purchase is also four years.

Issues in past

CSD has faced problems in sale of cars due to budgetary constraints or issues with state governments over excise duty. There have been instances when sale of cars had to be restricted as deliveries were delayed



from The Tribune http://bit.ly/2W6x5QF
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Storm over CSD ‘curbs’ on car sale Storm over CSD ‘curbs’ on car sale Reviewed by Online News Services on May 27, 2019 Rating: 5

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