Thiruvananthapuram: The Kerala Motor Vehicle Department has stopped issuing new driving licences and vehicle Registration Certificates (RC) as the financial crisis affected its operations. 

The printing of licenses ceased on November 16, and RC printing was halted on November 23. 

As said by the sources, about one lakh new vehicles hit the Kerala roads each month. Unfortunately, the current crisis left the owners of newly registered vehicles incapable of obtaining their necessary documents.

The non-availability of RC has led to delays in various other processes too; it restrained people from driving tests, obtaining permits, and vehicle transfers.

The delay in issuing the cards has also affected the journeys of inter-state heavy vehicles, including lorries and buses. Owners who want to produce their vehicles for the fitness test are also touched as the registration certificates that are handed over to the Road Transport Office during the fitness test are reissued in the form of new PVC cards. The cards are usually issued once the inspection procedures come to an end. 

Why was the printing halted? 

The Indian Telephone Industries (ITI), which has been producing licenses in the form of PVC cards, ceased printing after the Motor Vehicle Department continued to delay the payment and outstanding arrears touched Rs 8 crore.

The department collects an advance fee of Rs 245 from each of the applicants for RC and license. According to recent reports, MVD has stopped paying this amount to the company.

The contract for the printing of documents was initially quoted by a private company, at a rate of Rs 398 per card. After the court intervened, the contract was finally awarded to the ITI, at a rate of Rs 60 per card.

Though assuring prompt payment to the ITI before the Supreme Court, the government failed to keep its word. Meanwhile, the private company that lost the contract has returned with a proposal to provide the cards at the government-specified amount. In the current crisis, there are allegations, that attempts are being made to undermine the ITI contract in favour of this private company.