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HM scheme to swap old taxi cars

Our Bureau

KOLKATA, Nov. 3

HINDUSTAN Motors Ltd (HML) has launched a scheme to swap old taxi cars for new ones in the city, where it enjoys a monopoly market.

According to Mr G. Lakshmma Reddy, Vice-President, Marketing, this would be a test-launch for a national scheme aiming to swap old Ambassador taxi cars. ``In the last 50 years HML have sold around 3,50,000 taxi cars in the country,'' Mr Reddy told pressp ersons.

There are over 35,000 yellow taxis running in Kolkata. Of these, around 17,000 are more than 15-years old, which would be the target of the scheme.

In the first phase of the scheme, which, according to the company's estimates, may last around 10 days, HML plans to swap 150 taxis. It has tied-up with UCO Bank for providing finance to the taxi owners.

Mr Reddy claimed that the old taxis would be scrapped, not by the company but by ``some agents''. He admitted the infrastructure for such work and the processes had to be put in place. On the eve of the launch of the scheme, the Uttarpara plant of the co mpany, near here, has a stock of 250 such cars.

The new cars that will be provided under the scheme will be compliant with Bharat Stage II/Euro II environment norms. The salvage value will be adjusted against the down-payment. UCO Bank will charge interest at a flat rate of 8.5 per cent.

HML sells around 15,000 taxi cars annually, Mr Reddy said. He expected that the scheme would be profitable and would push the company ``near to'' the black.