Jammu and Kashmir Transport Subsidy Scheme

Scheme Introduction: A Brief Overview

• The Jammu and Kashmir Transport Department has released an advertisement notice regarding applications for "Jammu and Kashmir Transport Subsidy Scheme".
• The transport department is currently inviting applications for the current financial year.
• The Jammu and Kashmir Subsidy Scheme aims to curb pollution and phase out old public transport vehicles registered with Jammu and Kashmir RTO.
• Under the scheme, the transport department of Jammu and Kashmir offers subsidies to the public transport operator for the replacement of outdated buses, mini buses, and matadors with new eco-friendly buses.
• The primary objective to implement this scheme is to optimize the available road space by transporting a maximum number of people efficiently without causing any congestion, traffic and pollution.
• To achieve this, the government is providing subsidies to the public transport operator to phase out their vehicles including buses, mini buses and matadors aged 15 years and above.
• According to the scheme, the government will provide a subsidy of Rs 5 lakh to the operator for replacing their vehicle with the new eco-friendly and fuel efficient buses.
• For mini-buses and matadors, the subsidy is Rs 5 Lakh or 16% of the vehicle cost (whichever is lower).
• The new eco-friendly buses purchased under the scheme must comply with the latest emission norms.
• With this the government is looking to promote a convenient public transport which will help to reduce car ownership, thereby reducing congestion on the road.
• The benefits of Jammu and Kashmir Subsidy Scheme will be provided to the operators who are looking for loans to raise capital.
• To apply for the scheme, operators must deregister their old vehicles and obtain a scrap certificate from the registered scrap dealer.
• To oversee the implementation of the scheme, the government has appointed the Transport Department of Jammu and Kashmir as its nodal authority.
• The authority will verify the scheme application and then publish a list of beneficiaries upon successful verification.
• To receive subsidy benefits, operators must purchase the vehicle within three months of its approval.
• The vehicle to be scrapped must have cleared all government dues such as token tax, passenger tax, fitness fee, permit fee and bank liability.
• Additionally, the vehicle permit must be renewed and have a valid insurance certificate.
• Eligible applicants can submit their Jammu and Kashmir Transport Subsidy Scheme application on plain paper at the nearest RTO.
• Authority will issue the subsidy amount to the loan issuer bank and the bank will then credit the subsidy and vehicle amount directly to OEM (Original Equipment Manufacturer).
• Eligible beneficiaries can avail loan under the scheme from the Jammu and Kashmir bank.
• Operators must be understood that the vehicles purchased under the scheme cannot be transferred for the five years and mandatory to operate on the designated route for the five years.

Scheme Benefits

• Under the Jammu and Kashmir Transport Subsidy Scheme, beneficiaries are entitled to the following benefits : -
  • A subsidy of Rs 5 lakh will be provided for the replacement of buses (age 15 years and above) with new eco-friendly fuel efficient buses.
  • A subsidy of Rs 5 lakh or 16% of the cost of the vehicle (whichever is less) for other public transport vehicles like min-buses and matadors.
  • The bank will provide a loan to the operator and will pay the subsidy along with the vehicle amount to the OEM.
  • Beneficiaries can use the subsidy amount to purchase new eco friendly buses.

Eligibility Requirements

• To receive Rs 5 lakh subsidy under the Jammu and Kashmir Transport Subsidy Scheme, beneficiaries must meet the following eligibility conditions : -

  Beneficiary must be an operator of buses/mini-buses/matadors used for public transportation. Vehicles must be registered with the Jammu or Kashmir RTO. Vehicle must have a renewed valid permit and insurance certificate. Vehicle must be at least 15 years old. Beneficiaries must replace their public transport vehicles with eco-friendly and fuel efficient vehicles. Subsidy is available to those who are looking to raise capital for loan. Concerned vehicle must have cleared all government taxes such as : - Token Tax. Passenger Tax. Fitness Fees. Permit Fee. Bank Liability etc. Vehicle purchase under the scheme can not be sold for the next 5 years. Operators availing of the scheme must operate their vehicle on the notified routes for the five years.

Required Documents

• Applicants are requested to submit the following documents along with the Jammu and Kashmir Transport Subsidy Scheme application form : -
  • Application for the scheme on plain paper.
  • Vehicle documents (updated at the time of vehicle scrapping).
  • Identification Proof.
  • Bank Passbook.
  • Certificate issued by the scrap dealer.
  • Chassis cut piece of the old vehicle.

Steps to Apply

• Operators fulfilling the eligibility criteria can apply for the Jammu and Kashmir Transport Subsidy Scheme.
• The transport department is currently accepting Jammu and Kashmir Transport Subsidy Scheme applications for the 2024-25 financial year.
• To submit an application for the Jammu and Kashmir Transport Subsidy Scheme, operators need to follow a step wise procedure.
• First, operators need to Deregister the vehicle through a registered scrap dealer.
• Obtain a scrap certificate and chassis piece from the dealer.
• Submit the subsidy application on a plain paper along with the required documents at the nearest RTO office.
• The Transport department will verify the received applications and documents.
• Upon approval, applicants can apply for a loan from Jammu and Kashmir Bank.
• The authority will credit the subsidy amount to the concerned bank as capital investment against the loan.
• Applicants need to purchase an eco friendly and fuel efficient vehicle within three months of subsidy approval.
• Vehicles bought under the scheme cannot be transferred for the next 5 years.

Relevant Links

• Jammu and Kashmir Transport Subsidy Scheme Advertisement Notice.
• Jammu and Kashmir Transport Subsidy Scheme Notification.
• Jammu and Kashmir Transport Department Portal.

Contact Information

• Jammu and Kashmir Transport Department Helpline Number.