Caught in red tape, printing of licences, RCs hits roadblock in Kerala

The printing of driving licences and vehicle registration certificates (RCs) across the State hit a roadblock as the Finance Department once again delayed the payments to the Transport Department. 

ITI Limited, a public sector organisation responsible for printing the same, has ceased operations since Thursday due to the unpaid dues amounting to Rs 10 crores, despite reminders sent by the Transport Department over a month ago.

This suspension has caused a backlog of 85,000 pending licences and two lakh RCs awaiting printing. Last year, a similar dispute between the Finance and Transport Departments led to a delay in RC distribution until the Chief Minister intervened and released Rs 8 crore from the Finance Department to settle outstanding payments. However, according to ITI officials, the funds did not arrive on time.

The bills for February and March were paid in May, and the bill for April was paid in June. However, no payments have been received since then. 
Even as large companies were eyeing for the contract,  the Motor Vehicle Department had handed over the responsibility for printing the licence and RCs to the ITI. Since then, concerns have arisen about potential conspiracies against the project.

No progress despite money reaching treasury

The printing costs amount to Rs 60 plus tax per card, incorporating modern security features such as Guilloche Printing. Applicants are charged at Rs 200 per card by the MVD. The amount will be deposited directly into the treasury. The MVD should recover the expenses later on. The current holdup is pertaining to this process. ITI officials cited outstanding payments to suppliers of materials like PETG cards and ink, crucial for the printing of licences and RCs.