Government Revises Jute Stock Holding Limits: Increases Caps for Mills, Reduces Limits for Traders and Balers

1 min read     Updated on 21 Jan 2026, 09:01 AM
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Overview

The government has revised jute stock holding limits, increasing caps for mills while reducing limits for traders and balers. This differentiated approach provides manufacturing units with greater inventory flexibility while restricting intermediary stockpiling. The policy adjustment represents a strategic shift in regulating the textiles sector's jute segment, optimizing stock distribution across the supply chain.

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The government has announced significant revisions to stock holding limits within the jute sector, implementing a differentiated approach for various market participants. The policy changes represent a strategic shift in how inventory caps are managed across the textiles industry's jute segment.

Policy Changes for Different Market Segments

Under the revised framework, jute mills will benefit from increased stock holding limits, providing these manufacturing units with greater flexibility in managing their raw material inventories. This adjustment recognizes the operational requirements of mills that need adequate stock levels to maintain consistent production schedules.

In contrast, the government has implemented reduced stock holding caps for traders and balers. This reduction suggests a regulatory approach aimed at preventing excessive stockpiling by intermediaries in the jute supply chain.

Impact on Textiles Sector Operations

The differentiated stock limit structure indicates the government's intention to optimize inventory distribution across various segments of the jute industry. Mills, being the primary processing units, require substantial raw material stocks to ensure uninterrupted production cycles.

Traders and balers, functioning as intermediaries in the supply chain, will need to adjust their inventory management strategies to comply with the reduced limits. This policy framework appears designed to streamline the flow of jute through the supply chain while preventing potential market distortions.

Regulatory Framework Adjustment

These stock limit revisions represent part of the government's ongoing efforts to regulate commodity markets within the textiles sector. The policy distinguishes between different types of market participants based on their role in the value chain, with manufacturing units receiving more favorable treatment compared to trading entities.

The implementation of these revised limits will require market participants to reassess their inventory strategies and ensure compliance with the new regulatory framework governing jute stock holdings.

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India amends motor vehicle rules: No NOC, fitness renewal or permits if toll dues pending

2 min read     Updated on 20 Jan 2026, 08:15 PM
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Reviewed by
Radhika SScanX News Team
Overview

India has amended the Central Motor Vehicles Rules, 1989, to deny essential vehicle services including NOC, fitness certificates, and permits to vehicles with pending toll dues on National Highways. The changes introduce a new definition of "unpaid user fee" and update Form 28 requirements to include toll compliance declarations. These amendments support the upcoming Multi-Lane Free Flow system for barrier-less tolling and help implement transparent, technology-based toll collection mechanisms.

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The Government of India has strengthened toll compliance mechanisms by amending the Central Motor Vehicles Rules, 1989, through the Central Motor Vehicles (Second Amendment) Rules, 2026. These changes aim to improve user fee compliance, enhance Electronic Toll Collection (ETC) efficiency, and discourage toll evasion on National Highways.

New Definition and Scope

The amendments introduce a comprehensive definition of "unpaid user fee," which refers to toll payable for using a National Highway section where the ETC system has recorded a vehicle's passage, but the fee has not been received as per the National Highways Act, 1956. This definition establishes a clear framework for identifying and tracking toll payment defaults.

Service Restrictions for Defaulters

The amended rules create direct linkages between toll payment compliance and essential vehicle services. Authorities will now deny multiple critical services to vehicles with outstanding toll dues.

Service Type: Restriction Details
No Objection Certificate (NOC): Transfer of vehicle ownership or inter-state transfer denied
Certificate of Fitness: Renewal or new issuance blocked
National Permit: Commercial vehicle applications rejected

Updated Documentation Requirements

Form 28 has been significantly updated to incorporate these compliance measures. The form, which serves as the application for NOC required for transferring vehicle ownership across states or districts, now includes mandatory declarations about pending toll dues.

Key changes to Form 28 include:

  • Declaration requirement: Applicants must declare whether any unpaid toll demand is pending against their vehicle
  • Detail provision: Relevant details of outstanding dues must be provided
  • Electronic issuance: Relevant portions can now be issued electronically through a designated online portal
  • Compliance verification: Confirms no pending taxes, challans, or legal issues including toll dues

Technology Integration and Future Systems

The amendments support the upcoming rollout of the Multi-Lane Free Flow (MLFF) system, which will enable barrier-less tolling on National Highways. This technology-based approach represents a significant advancement in toll collection infrastructure, requiring robust compliance mechanisms to ensure revenue collection without physical barriers.

Implementation Timeline

The amendment process followed established consultation procedures. The draft amendments were published on July 11, 2025, through a Gazette Notification to invite stakeholder and public feedback. The draft notification became available on July 14, 2025, allowing for comprehensive review before finalization.

Strategic Impact

The government stated these changes will help the National Highways Authority of India implement transparent, technology-based tolling systems for National Highway network development and maintenance. The amendments create a comprehensive framework linking toll compliance with vehicle registration services, ensuring systematic revenue collection while supporting infrastructure development goals.

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