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Amendment to MVA & infra focus to help transport companies

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In the Budget 2016, Finance Minister Arun Jaitley announced that The Motor Vehicles Act, 1988 (MVA) was going to be amended to include the private sector in the passenger vehicle segment of road transport. 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.

We reached out to transport and travel companies to ask them how the changes affected them. Here’s what they had to say:

ZipGo: Jitender Sharma, co-founder and CEO of ZipGo, a bus shuttle aggregator told MediaNama, “(This move is) Great for disruptors like ZipGo. Daily commute will become easier for the average citizen, lead to world class public transportation infrastructure in India and a greater share of shared transportation options. Traffic, congestion and pollution will reduce. A very positive signal for investors as well.”

Trouble with the law: Last month, ZipGo had launched a petition asking its users and Bangalore citizens to help it resinstate the business stating that it did not violate any laws and regulations. ZipGo had to stop its services in Bangalore after the RTO seized an unknown number of vehicles on its platform citing that ZipGo did not have valid permits to ply in the city.

Ola: Bhavish Aggarwal, co-founder and CEO of Ola said, “.. It was quite encouraging to see the Hon’ble FM also address some key road transportation issues and set aside a requisite budget for infrastructure development. Creating inroads for entrepreneurship in the public transportation space and amendments in the Motor Vehicles Act to allow for innovations will provide a strong impetus towards enabling mobility for citizens. These proposed initiatives give us immense confidence as we work towards our mission of building mobility for a billion Indians.”

Carzonrent: Rajiv Vij, MD and CEO of Carzonrent  said, “FM’s focus towards infrastructure development, rail and expanding road network is a welcome initiative, which will inject new energy into related sectors like transportation, tourism – domestic and inbound, automotive, construction. We also see this as a booster to the mobility services providers… and encouraging people to undertake trips using self-drives or other options of car-rental services.. The focus on infrastructure Development is a first step in that direction, and can be built on it further.”

Rideji: Vineet Yadav, co-founder of ride sharing app Rideji said, “I am happy to see the focus on infrastructure development, which will further give a boost to our domain. Moreover, Honorable Finance Minister mentioned Public Transport needs in his speech, which is a very encouraging sign for us.”

Image creditNicolas Mirguet under CC BY NC 2.0

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