New Delhi: From June 1, cars that cost more than Rs 12 lakh will no longer be available at subsidized rates from the government canteen. Just days before the new rule kicks in, outgoing Navy Chief Admiral Sunil Lanba has received the delivery of a brand new Jeep Compass he bought from the Canteen Stores Department (CSD).
The basic variant of the Jeep Compass has an on-road price in excess of Rs. 15 lakh, with range-topping variants priced at over Rs. 20 lakh if bought directly from a Jeep dealership. From a canteen, the prices are slashed drastically.
The canteen department negotiates the price and then offers a 50 per cent rebate on the GST component. The discount is a huge attraction for armed forces personnel, many of whom use the subsidy to buy new vehicles. The Jeep Compass, which was the costliest car in the canteen, will no longer be available from there.
In a letter sent on May 24, the Integrated Headquarters of the Ministry of Defence has decided to restrict the entitlement of four-wheel vehicles. Now, officers and other ranks can only procure cars once every eight years.
Senior officers can buy one with an engine capacity of up to 2,500 cc. Other ranks are entitled to one with an engine capacity of 1,400 cc; these must not cost more than Rs. 5 lakh.