Auto-meters for the people

Simon Harding in the Indian Express
 

Delhi Chief Minister Sheila Dikshit’s promise to scrap autorickshaws — because autowallahs “harass” passengers and many ply “illegally” — is part of her desire to see visitors to Delhi’s Commonwealth Games return convinced “that they have been to a truly civilised city”. But are Delhi’s autowallahs really that greedy? Why won’t they switch on the meter? Why do so many ply “illegally”?

There are two types of auto-driver: 80 per cent are renter-drivers, renting autos from contractors who own multiple vehicles. They pay Rs 250-300 for 10-12 hours and earn the same amount in profit: half their daily taking goes on rent and CNG. Owner-drivers own their machines, although “owner” is misleading as most are repaying huge loans to auto-financiers from whom they purchased the rickshaw and the required permit. Monthly payments are Rs 9,000-15,000.

Two decisions have strengthened the auto-financiers’ hands. In 1997, the Supreme Court capped the number of autos, trying to cut emissions. No new auto-permits would be issued; nor could they be sold. Delhi’s size and population grew, but the number of autos did not. Consequently, the permit price rocketed and a black market emerged. Only auto-financiers won; their existing stock of auto-permits appreciated. In the late ’90s, a new rickshaw with permit cost just over a lakh. Today, after a decade of black-market inflation, the same package costs Rs 4-4.5 lakh: Rs 1.45 lakh for the auto, Rs 3 lakh for the permit. Meanwhile, demand for rented autos rose with new migrants, but supply froze, allowing contractors to hike rents.

Full article can be found at: http://www.indianexpress.com/news/autometers-for-the-people/594330/