KARACHI, March 23: The Smart Card vehicle inspection and testing project principally approved by the Sindh government is reportedly in the doldrums. Messers IRIS-RIST Technologies of Malaysia had offered the Sindh government to invest more than $500 million on build, own and operate (BOO) basis.

The governor, senior excise and taxation minister, advisor to the CM for information technology, CDGK nazim and representatives of the home and police departments were given a briefing in this respect.

The governor agreed with the proposal and instructed the IT Department to provide all facilities for these projects. He also ordered that a summary in this respect be sent to the chief minister for approval.

According to the briefing, the government will only facilitate in legislation, enforcement and provide suitable land in different areas to set up inspection and testing stations. The projects will be funded by the firm and the cost recovered from end-users.

The smart chip will store statutory data securely about the vehicle like its history, pollution control certification, registration, information about the owner, other documents. The card will carry basic data about the card holder data printed on it.

The proposal will benefit the Sindh government through an increase in tax revenue reducing chances of fraud. Citizens will have greater protection against vehicle theft and unknowingly purchasing stolen vehicles.

The vehicle inspection and testing project will help reduce environmental pollution. The country loses about $4 billion every year as environmental pollution causes various diseases.

Some home department officials opposed handing over the project to a foreign firm saying that similar projects initiated in Punjab by the firm in 2004-05 were under litigation on financial issues and the project reassigned to the National Data Registration Authority in Punjab.

They said there was no forecast of revenues/profits to be earned by the firm in terms of acceptable percentage nor was it clear who would bear the incidentals/overheads accrued upon the government due to mobilisation of government agencies for the project’s execution.

Similarly, no data had been given with reference to the possible additional revenues the government might acquire over and above the MTV earnings.

The officials said Nadra was already working on similar projects pertaining to vehicles database, namely VMIS and RFID-DL which could be integrated with citizens’ database.

The home department suggested the Sindh government to get feedback from Punjab government before proceeding. It also advised inviting comments from the finance, law and excise secretaries and NADRA officials.