Smart Enforcement App for Trucks to reduce logistics costs

The govt has developed an IT-based solution to make enforcement mechanism technology-driven.

GN Bureau | June 17, 2021


#SmartEnforcementApp   #eChallan   #LogisticsCost   #Trucks   #CommercialVehicles  

On average, a truck in India covers 50,000-60,000 km a year, compared to over 300,000 km in advanced nations such as the United States. One of the key reasons is delays due to random stoppages for physical checking of vehicles and verification of documents. 

As a strategy to reduce logistics costs on-road transportation, the Government of India, Department of Commerce, Logistics Division has developed a risk-based approach on the implementation of smart enforcement of rules and regulations related to road-based violations by trucks. It has also developed an IT-based solution to make enforcement mechanism technology-driven.
 
In a meeting with the officials of the state governments, the centre shared the risk-based approach and also unveiled the IT-based Smart Enforcement App. The meeting was attended by over 100 senior officials from related departments such as commercial tax and the transport departments of the state governments.
 
The government is expecting that the use of this app will lead to a decrease in the number of physical checks of commercial vehicles by enforcement officers. Also with the usage of this app, the government is aiming reduction in the number of cash challan by issuing e-challan using the system. Reduction in the deployment of the workforce on Roads leading to better manpower utilization and higher revenue collection due to reduced human intervention is also expected as an outcome. Also, it will target the reduction in logistics cost which is currently at 13% of GDP.
 
Speaking on the occasion, Special Secretary, Logistics, Pawan Agarwal pointed out that the process of enforcing rules and regulations associated with tax, transport, traffic, and product-specific legislation such as petroleum, forest produce, minerals, etc requires significant investment in manpower and resources by state governments. While economic activities have increased, various states have not been able to increase the manpower to that extent. Thus, technology adoption and a risk-based approach is the only way forward. He further added that a reduced compliance burden on the movement of trucks can potentially help to reduce transportation costs quite significantly.
 

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