More companies to be allowed to sell speed limiting devices

The Transport Department will explore the possibility of allowing all the companies manufacturing speed limiting device (SLD) after various transport associations complained that the two firms that got exclusive rights were charging exorbitant prices.

The department's move comes after a letter dated February 2017 by Ministry of Road Transport and Highways (MORTH) clarified that there was no need to provide exclusive rights to companies to sell SLD.

A senior official in the department said they would explore the conditions prevailing upon the empanelment of two companies in 2015. "We will check the legalities and if it does not violate any condition, we will allow all the certified companies to sell the devices in the state," he said.

The Transport Department, which issued a notification in August 2015 making SLD mandatory for transport vehicles, is facing flak for prescribing criteria to select eligible manufacturers of SLDs.

Though the department's move was upheld by the High Court of Karnataka in April, vehicle associations said many vehicle owners would have got relief if the department submitted MORTH letter, which came two months before the court delivered the order.

"People in Karnataka are paying exorbitant rate of Rs 10,000 for the device which costs about Rs 3,000 in the neighbouring states. The government should allow all certified companies to sell the device," they said.

The letter lists 19 companies approved by the authorised testing agencies as per Central Motor Vehicle Act. It notes: "Any empanelment/restrictive practices, including the imposition of any additional criteria for SLD manufacturers would restrict competition may lead to higher prices, hurt the interest of consumers and raise legitimate concerns regarding unfair practices."