THIRUVANANTHAPURAM: KSRTC has lost the right to dismantle and sell expired vehicles. The government revoked the order appointing KSRTC as the implementing agency. Public sector organizations and private companies can participate in the new tender call.

While big companies won contracts in other states, KSRTC was ready to set up demolition centres in Kerala expecting gains in non-ticket revenue.

Demolition centres should be set up before February 29 as per the central requirement. The government had issued an order in March giving a monopoly to KSRTC, and the government changed its policy after some approached the High Court against it. Others will also be allowed to participate in the tender. There is a provision to give priority to government institutions. KSRTC can also participate.

KSRTC had plans to open demolition centres at Parassala, Edappal, Chittoor and Kanhangad with private participation. 93 depots and collection centres had decided to accept expired vehicles. KSRTC had invited expressions of interest from private companies for the right to operate demolition centres.

KSRTC has the land required for the demolition centre. Even if private entrepreneurs are found and the centre is set up, the corporation will benefit financially. The central government announced the vehicle scrapping policy in August 2021. Scrappers are exempted from registration and tax when buying a new vehicle.