Economy, Auto
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Privatization of Inspection Centers Stymied

Privatization of Inspection Centers StymiedPrivatization of Inspection Centers Stymied

The CEO of Vehicle Inspection Center Organization has complained about obstacles in the way of privatization of the automotive sub-industry.

Navab Hosseini-Manesh also said, "Considering the services provided and the inflation rate, the price should have risen to 300,000 rials ($8.50) but after a long period of price stability, it was raised to 220,000 rials ($6.20) which is way less than enough," IRNA reported.

Hosseini-Manesh added these prices might suit small towns, but it doesn't add up in Tehran.

"There had been two waves of privatization in the sector, which for large companies led to financial losses worth billions of rials. By earning 220,000 rials per vehicle, one would not be able to persuade the private sector to invest in the inspection industry," he said.

Hosseini-Manesh noted that laws and regulations should be considered in price liberalization.

"Two vehicle inspection centers are located in downtown Tehran and if the municipality had built skyscrapers in their places, it would have been more lucrative," he said. According to Tehran Municipality's development programs, two vehicle inspection centers of the capital should be managed with the help of the private sector.

The official said the municipality does not consider itself in the equation, rather it is focusing on the profitability of the private investor. Hosseini-Manesh also demanded that since the municipality is in charge of these centers, it should be allowed to determine the prices in accordance with the laws and regulations.

Financialtribune.com