Hyderabad: Telangana govt has increased the approved cost of setting up 37 automated testing stations (ATS) for vehicle fitness checks from Rs 296 crore to Rs 425 crore, raising the allocation per station from Rs 8 crore to Rs 11 crore. The revised approvals, issued on Thursday, aim to introduce technology-based fitness testing across the state, replacing conventional inspection methods with automated systems.The transport department issued the revised administrative sanction through a GO, approving the project in two phases. The first phase, covering 15 stations, has been allocated Rs 172.5 crore, while the remaining 22 stations will be set up in the second phase at a cost of Rs 253 crore. Under the first phase, stations will be established at the erstwhile district headquarters, along with four additional stations in the Greater Hyderabad or HMDA limits. The second phase will cover the remaining locations, taking the total number of stations to 37.Rather than funding the project entirely through direct budgetary allocations, govt has approved a self-financing model for setting up and operating the facilities. A special purpose vehicle (SPV) will be formed under the transport department to oversee the project and its operations. The funds required for construction and establishment will be raised through loans from banks and financial institutions, including HUDCO.The SPV will maintain a dedicated fund into which application fees, fitness-testing charges and user charges collected from vehicle owners will be deposited. The money will be used exclusively to repay the principal and interest on loans taken for establishing and operating the stations.Govt has directed the transport commissioner to prepare a detailed proposal covering the SPV’s structure, functioning and financial model and submit it for approval. The revised order provides the administrative and financial framework for taking the project forward. The proposed network is intended to modernise vehicle fitness testing through automated equipment, reducing reliance on manual assessments. The stations will play a role in checking whether vehicles meet prescribed fitness standards before being certified for road use.The revised sanction increases the overall project outlay by Rs 129 crore from the earlier approved amount. The increase of about 44% comes with a corresponding rise in the sanctioned cost per station, from Rs 8 crore to Rs 11.5 crore. However, the order does not specify a timeline for completing the 37 stations or when they will begin operations. The transport commissioner’s proposals on the SPV’s structure and financial arrangements will determine the next steps in implementing the project.
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