HYDERABAD: The Telangana government has increased the estimated cost of setting up 37 Automated Testing Stations (ATS) across the state from Rs 296 crore to Rs 425.5 crore, raising the cost per station from Rs 8 crore to Rs 11.5 crore.
The stations will replace manual vehicle fitness inspections, using specialised sensors to assess braking efficiency, engine performance, emissions and other parameters before certifying vehicles as roadworthy. The facilities will test heavy and medium vehicles, including trucks and buses, as well as light motor vehicles such as cars.
Transport Commissioner K Ilambarithi told TNIE that the government expects to recover its investment within two years, with the stations projected to generate around Rs 250 crore annually through user fees. The first phase, comprising 15 stations, is expected to be completed in six to eight months.
Ilambarithi said the initial estimate of Rs 8 crore per station was preliminary, while the revised estimate of Rs 11.5 crore was prepared by officials around six months ago. The Ministry of Road Transport and Highways (MoRTH) has estimated the cost at around Rs 14.5 crore per station, while Odisha’s estimate stands at Rs 17 crore, he added.
According to a government order issued by the Transport, Roads and Buildings department on Thursday, the project will be implemented through a Special Purpose Vehicle under the Transport department on a self-financing model. The SPV will raise loans from banks and financial institutions, including HUDCO, to establish and maintain the stations.
Of the 37 stations, 15 will be set up in the first phase, including one at each of the erstwhile district headquarters and four additional stations in Greater Hyderabad. The first phase is estimated to cost Rs 172.5 crore, while the remaining 22 stations will be established in the second phase at a cost of Rs 253 crore.
Ilambarithi said Telangana opted for the SPV model after examining the public-private partnership model and identifying its drawbacks. Andhra Pradesh, meanwhile, is implementing the initiative under the PPP model.
Revenue from application fees, vehicle testing charges and other user fees will be deposited into a dedicated SPV fund and used exclusively to repay the principal and interest on loans raised for the project.
The government had initially sanctioned Rs 296 crore for the 37 stations under the Vehicle Fleet Modernisation Policy, based on an estimated cost of Rs 8 crore per station. The latest order ratifies the transport commissioner’s decision to revise the cost of the first-phase stations and approves the revised unit cost for the remaining facilities.
