THIRUVANANTHAPURAM: In the controversial AI camera deal, the government has proposed to form a comprehensive agreement by the end of this month by reducing the contract amount to be paid to Keltron. 232.25 crores as per the preliminary agreement will be reduced.

It has not been decided how much money will be reduced. The Motor Vehicle Department has to pay the contract amount to Keltron in 20 installments.

The contract will also include a provision for a proportional reduction in the repayment if the camera does not work. The opposition had alleged that there was corruption in the contract for the higher amount. The government is trying to avoid the controversy by reducing the amount in the comprehensive agreement. The government had defended the opposition's allegation by saying that a comprehensive agreement was not ready.

The new proposal is to change the first proposal that the Department of Motor Vehicles and Keltron should jointly prepare the draft of the comprehensive agreement. As of now, the draft should exclusively be prepared by Keltron. It will be forwarded to the Transport Department for finalization after inspection by the Motor Vehicles Department.

Although fines have been collected through cameras, Keltron is yet to be paid its share. Therefore Keltron's effort is to implement the comprehensive agreement as soon as possible and get the payment from next month.

To be paid in 20 installments

As per the initial agreement, the amount is to be paid in 20 installments as follows:

11.6 crores to be paid by the Department of Motor Vehicles to Keltron

7.56 crores to be paid by Keltron SRIT

Although reluctant, Keltron will relent

Although Keltron is not interested in reducing the contract amount, it may accede to the government's proposal. Keltron says that even though the revenue has not started coming in, the expense is not low. After installation, 85 cameras had to be replaced. Keltron CMD Narayana Murthy informed the motor vehicle department that this is an additional cost.

Court approval is required

The High Court has an interim order not to disburse funds to the scheme without the court's approval. Therefore, even if the comprehensive agreement is drawn up, payment to Keltron will be subject to court approval.