Army officers can now buy cars from CSD canteens only once in 8 years

A recent report from the Economic Times reveals that the Indian Army has imposed limitations on the buying of inexpensive cars by defence officers from CSD canteens. The new policy will come into effect from June 1, 2019. As per new order, an Army officer will be allowed to buy a new car from CDS canteens only once in 8 years. Moreover, the car's price must not surpass Rs. 12 lakh price bracket excluding GST and its engine size can be up to 2,500cc. The Army Jawans can also purchase a car of Rs 6.5 lakh including GST once during routine service and once after retirement.

Army officer will be allowed to buy a new car from CDS canteens only once in 8 years.

 In the last two years, car sales are enhanced by 200% in the last 2 years. The previous year, cars sales through CSD canteens crossed Rs. 6,000 crore, when around Rs. 17,000 crores is approved by the government for CSD yearly. These Army officers save almost Rs 75,000 on purchasing a car through CSD.

An army officer said "CSD does a price negotiation for all items introduced and then a 50 per cent GST rebate is given by govt on that reduced price. Though the CSD creates a profit of almost 500 crores annually as CTS and deposits another approximately Ra 150 crore into the consolidated fund of India, the 50 per cent rebate is viewed as a loss to exchequer by finance authorities,"

" Last year only, the car sales were over 6000 cr resulting in the budget being overshot and a carryover liability of payment to car manufacturers of Rs 4500 crore," he added.

The new government policy impose limitations on the buying of cheap cars by defence officers from CSD canteens. 

Reports suggest, approximately Rs 17000 crore yearly is approved by Parliament for CSD under miscellaneous heads. Moreover, the Indian Government is also taking further steps to establish a good EV market in India by introducing new policies and subsidies. Hyundai has confirmed that they are launching the fully-electric Kona SUV in Indian by July 9. Hyundai Kona will be India's first fully electric vehicle.