wordpress blog stats
Connect with us

Hi, what are you looking for?

Amendment to Motor Vehicles Act scraps requirement for public transport permits

mini bus

According to the Union Budget announcement of 2016, The Motor Vehicles Act, 1988 (MVA) is going to be amended to include the private sector in the passenger vehicle segment of road transport, reports Business Standard. It is also getting rid of the permit law in public transport, which currently requires bus operators to get yearly permits to operate them, including a single district permit, permits for other districts and an all India permit.

Also see: Budget 2016-17: e-platform for agriculture, digital literacy, Aadhaar

The government will provide an ecosystem in which states can adopt a revised legal framework to boost road transport, including buses. These will obviously be subject to safety and efficiency norms, and the government thinks this will increase efficiency in public transport facilities, improve public convenience, create investments and new jobs, along with increasing entrepreneurs.

Higher spend on infrastructure
The budget has outlined Rs 2.21 lakh crore for infrastructure for 2016-17. Finance Minister Arun Jaitley said that 85% of the 70 stuck road projects (investments of Rs 1 lakh crore and 8,300 kms) have been put on track. It will also announce a new credit rating system for infrastructure. Jaitley said, “… India’s highest ever production of motor vehicles was achieved in 2015. This is a sign of growth in the economy; but it presents a challenge also. Therefore, we have speeded up the process of road construction.”

Fitness certificate necessary
Earlier this month, the Bombay High Court asked the Centre to consider amending the section 192 MVA in order to penalise vehicles which ply without fitness certificates. Shrikant Karve had filed a public interest litigation (PIL) with respect to the issue of non compliance of rules by RTOs, but were issuing fitness certificates. The state was also directed to conduct checks on fitness certificates of all vehicles for 15 days twice a year.

Advertisement. Scroll to continue reading.

Last month, Delhi Chief Minister Arvind Kejriwal asked for the demolition of Rule 8 (pertaining to providing a Class 8 certificate) of the MVA which states that in order to get an auto driving license, drivers must produce Class 8 (8th standard) certificate.

Karnataka’s cab aggregator guidelines: Earlier this month, the Karnataka government released its own set of rules for online cab aggregators, while in October last year, the Maharashtra government proposed that online cab aggregators, such as Uber, Ola and TaxiForSure, be brought under the ambit of the Motor Vehicles Act.

MediaNama’s take: While the specifics of the amendment are not out yet, we think this is a progressive move by the government to ensure more facilities for commuters, as well as open up the game to companies, possibly leading to innovative solutions. It will also no longer be a fight to operate in India as a transport company.

Image Credit: Shankar S under CC BY 2.0

Advertisement. Scroll to continue reading.
Written By

I'm a MediaNama alumna from 2015-16 (remember TinyOwl?) now back to cover e-services like food and grocery delivery, app based transport and policies, platforms and media in India.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



While the market reality of popular crypto-assets like Bitcoin may undergo little change, the same can't be said for stablecoins.


Bringing transactions related to crypto-assets within the tax net could make matters less fuzzy.


Loopholes in FEMA and the decentralised nature of crypto-assets point to a need for effective regulations.


The need of the hour is for lawmakers to understand the systems that are amplifying harmful content.


For drone delivery to become a reality, a permissive regulatory regime is a prerequisite.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ