Patna, Nov. 8: The cabinet today decided to increase licence fee for oil marketing companies and outlets selling petroleum products, and enhanced ex gratia for the next of kin of martyred armed forces personnel hailing from the state from Rs 5 lakh to Rs 11 lakh.

The cabinet approved a transport department proposal to hike licence fee for oil marketing companies and petroleum product dealers by almost a hundred times, citing the depreciation of rupee since 1980 when it was last increased.

"Bihar Motor Spirit and High Speed Diesel Oil Dealer Licensing Order, 1966, has been amended," cabinet secretariat department principal secretary Brajesh Mehrotra told journalists. "It was earlier amended in 1974 and 1980. The fees for new licences, renewal of existing ones and getting a duplicate of the issued licences have been revised."

The marketing companies will now have to pay Rs 25,000 for a new license against Rs 250 charged earlier. Similarly, licence renewal fees for them have been increased to Rs 20,000 from Rs 200 charged earlier. Besides, Rs 10,000 will be charged for obtaining a duplicate of the licence, instead of Rs 100 charged earlier.

As far as petro-product dealers and petrol pump owners are concerned, they will have to shell out Rs 10,000 for a new license, Rs 5,000 for renewal of existing ones and Rs 2,500 for getting a duplicate one, instead of Rs 100, Rs 100 and Rs 25 respectively charged till now.

Transport department principal secretary Sujata Chaturvedi told The Telegraph: "District transport officer is the licensing authority for company-owned or individually-owned retail outlets in the state. The licence allows them to operate in the state. The licence fee had not been increased since 1980 and was revised in the interest of the state."

Sujata said that keeping in mind depreciation in the value of the rupee over the last four decades, the licence fee was very little till now. She added that the revision in licence fee will have a nominal impact on department's revenue.

Bihar Petroleum Dealers Association general secretary Brijendra Kumar Sinha said there were over 2,000 petrol pumps and retail outlets in the state and called the hike in licence fee "too high" as the licences were of one-year tenure. He added that the association members will discuss the issue.

In another major decision, the state government decided to enhance ex gratia payment to the next of kin of martyred armed forces personnel who were Bihar residents from the existing Rs 5 lakh to Rs 11 lakh.

"Apart from Rs 11 lakh ex-gratia, the state government will also bear the expenditure of the last rites of the military personnel martyred in war or 'war-like situations'," Brajesh said.

The state cabinet altogether discussed 13 agendas at today's meeting. It also approved the transport department's proposal to impose tax on commercial transport vehicles on the basis of the number of seats in them.

Previously, this was done on the basis of their "wheel-base" or chassis or number of seats in them. The change was necessitated because manufacturers were now providing vehicles with integrated seats and body. Earlier this was not the trend and buyers had to get the body and seats of buses designed separately.

The cabinet also accorded its administrative approval to the Rs 22.53 crore plan to build an indoor stadium at the campus of Bihar Military Police-5 in the state capital for hosting 65th All-India Police Wrestling Championship 2016.

The money will also be used for purchase of training equipment.