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The Bengaluru University Students and Research Association on Thursday filed a written complaint with Chief Minister Siddaramaiah against the alleged monopoly of four companies that will install High Security Recording Boards (HSRP) in Karnataka state. It also said that the four companies are associated with a Gurugram-based company.
The association has also called for state and taluk protests in the coming days if the state government does not crack down on monopoly in the HSRP industry.
The association alleged that the monopoly was destroying the livelihood of about 20,000 families in Karnataka working in the licensing industry and denying customers access to competitive prices from various vendors.
The HSRP is a major project for the Federal Department of Land Transportation and Highways, and is an aluminum number plate that is affixed to a vehicle by two additional, non-reusable locks and has various selectable features.
Locks were made mandatory for vehicles registered before 2019 so that number plates cannot be tampered with or misused by thieves. HSRPs include details such as the engine number and chassis number which are stored in a central database. The data helps identify the stolen vehicle.
Lokesh Ram, a student activist, explained that the ministry has given permission to nearly 17 companies to install HSRP number plates on existing and new vehicles in the country.
However, in order to create a monopoly, it is likely that only four companies in Karnataka will get permission to install HSRP number plates. These four companies are associated with one company, which is technically involved in fixing the HSRPs. By selecting only four companies and keeping the other players out, Given that there is good scope for corruption by creating a monopoly”, Ram claimed.
“In our complaint to the Chief Minister, we have submitted the supporting documents which prove that Gurugram based Rosmerta Safety System, is given permission to fix HSRPs in Karnataka vehicles,” Ram claimed.
“It is estimated that the country has nearly 30 crores old vehicles out of which Karnataka has 2 crores. All these vehicles in Karnataka must be fitted with HSRP number plates and the cost per installation is between Rs 400 to Rs 950. There is a profit margin of at least about 50 per cent in each number plate HSRP. If it is awarded to a few hands, the profit is estimated to reach Rs 500 crore. So, there is a bigger lobby to hold contracts related to officials and influencers,” Ram claimed.
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