Explainer: What is the HAPPY card scheme of Haryana, and why has Transport Minister Anil Vij sought a probe?

Following the findings of ex-IAS officer Ashok Khemka, who retired as Additional Chief Secretary of the Transport Department in April, Transport Minister Anil Vij has not only expressed grave concern about Haryana Antyodaya Parivar Parivahan Yojana (HAPPY) cards scheme, but has also written to Chief Minister Nayab Singh Saini requesting a probe in the matter.

Khemka has alleged in his file notings that the scheme, if allowed to run on the approved rates, could potentially cause a loss of around Rs 180 crore.

Also read: Months after Khemka flagged Rs 180-cr ‘loss’, Haryana travel card scheme under lens

What is the HAPPY card scheme?

The Haryana Antyodaya Parivar Parivahan Yojana (HAPPY) card scheme allows people with an annual income of up to Rs 1 lakh per annum to travel for free up to 1,000 km every year.

Former Haryana Chief Minister Manohar Lal Khattar had first announced the scheme in his budget speech for the fiscal year 2024-25. It was finally launched in March 2024.

When the scheme was launched on March 7, 2024, the government had stated that the benefit of free travel would be available to 22.89 lakh families with around 84 lakh persons having an annual income of up to Rs 1 lakh.

The beneficiaries are issued a smart card linked to the e-ticketing system to enable free travel in Haryana Roadways buses.

The HAPPY card is a kind of National Common Mobility Card (NCMC) in open loop.

Why have Anil Vij and Ashok Khemka raised objections?

Khemka had described the process involved in the awarding of the contract as "opaque”. In December 2024, he had found that the HAPPY project had been approved “without competitive bidding”. He pegged the potential loss at Rs 180 crore.

According to Khemka’s file notings, at the minimum guarantee size of 50 lakh cards, the amount involved in the first stage of card issuance is Rs 63.72 crore (excluding the first 10 lakh free cards), and the annual maintenance charges are Rs 39.53 crore from the second year onwards.

He had pointed out that little service was required on these cards, and a payment of Rs 79.06 per card (maintenance charges) is prohibitive and “ought not be paid”.

He had also pointed out that, strangely, the approval of the then CM (Khattar) was taken twice, and the project was rolled out within 19 days of the approval of the card's cost.

He had added that the market rate of the card was much lower as Himachal Pradesh operated the NCMC card of the SBI at Rs 100, inclusive of GST, and there are no maintenance charges.

What is the current status of the issue?

On August 4, Vij had again raised the issue, stating that after seeking comments from the Commissioner and the Secretary of the Transport Department, no conclusive findings or recommendations had been made regarding the concerns raised by Khemka. He sought information on officers who represented the Transport Department on discussions to finalise the cost of HAPPY cards and minutes of the meeting. He also demanded to know whether the issue of the cost of HAPPY cards was ever placed before the Council of Ministers, and if it was placed, then a copy of the proceedings should be provided.

The making of new cards is held up for now.