Jammu, Jul 18: A delegation from the Federation of Automobiles Dealers Associations (FADA) Jammu, led by Chairperson Sanjay Aggarwal, held a detailed meeting with Chief Minister Omar Abdullah.
The delegation, as per a statement issued here, included FADA Jammu Regional Directors Sanjay Mahajan, Ravinder Gandotra, Rohit Gandotra, Manik Batra, Ashish Gupta, Prateek Jain, and Kanav Aggarwal. The primary purpose of the meeting was to discuss various issues and challenges faced by the automobile trade in the region.
During the discussions, Aggarwal said the Scrappage Policy has not yet been implemented in Jammu and Kashmir, which prevents consumers from benefiting from vehicle scrapping incentives. He pointed out the lack of scrapping units within the Union Territory, forcing residents to travel to neighboring states to scrap their vehicles and obtain Certificates of Deposit (COD).
With nearly two lakh end-of-life vehicles in J&K, he called for the early rollout of the policy. He also proposed providing discounts on registration taxes for new vehicles after scrapping old ones, citing examples from other states offering 15-25% rebates on road tax under similar policies.
Aggarwal suggested that J&K should adopt green initiatives by exempting hybrid and CNG vehicles from road tax, as many other states and UTs do, offering exemptions ranging from 50% to 100%. He further raised concerns regarding the GST imposed on road tax, asserting that double taxation is unlawful and should be discontinued immediately. The issue of incoming end-of-life vehicles from other states was also discussed, with Aggarwal proposing a 10% Green Tax on such unsafe and polluting vehicles re-registering in J&K to address regulatory and environmental concerns.
The FADA chairperson also brought attention to the illegal sale and purchase of used cars in the region, noting that many traders operate without valid trade certificates, which not only violates laws but also results in revenue losses for the UT. To promote the automobile sector, he recommended organizing Mega Trade Fairs and offering a 50% discount on vehicle registration fees, following successful models in Madhya Pradesh, Chhattisgarh, and Goa, which have boosted business and increased revenue.
Aggarwal suggested simplifying the process of doing business by introducing a single Trade Certificate valid across all districts of J&K, akin to GST registration, thereby easing operations for dealers. The establishment of automobile service center clusters within industrial areas was also proposed to facilitate better infrastructure and industrial growth in various districts.
He called for developing EV charging infrastructure in J&K, noting that despite Jammu’s inclusion in the Smart City initiative, adequate charging stations are still lacking. Aggarwal proposed forming a dedicated committee to study best practices from other states and implement reforms in Jammu and Kashmir’s automobile sector.
Chief Minister Omar Abdullah listened attentively to all the issues and suggestions, assuring the delegation that these matters would be taken up with the concerned departments for appropriate action, the statement said.
