Sections 66A, 66B, 67, 72, 74 and 88A of the Motor Vehicles Act
These provisions form part of the law controlling transport vehicles and deal with National Transportation Policy, permit holders participating in licence-based schemes, State transport policy, stage and contract carriage permits, and national, multimodal and inter-State transport schemes.
Section 66A - National Transportation Policy
Section 66A empowers the Central Government to develop a National Transportation Policy, in concurrence with State Governments and other agencies, consistently with the objects of the Motor Vehicles Act.
The policy may establish planning frameworks for passenger and goods transportation and medium and long-term planning for road transport, including integration with ports, railways, aviation and local and State planning authorities.
It may also address permit and scheme frameworks, road transport strategy, future transport priorities, competition and innovation, capacity and seamless mobility, efficient use of resources, public interest and equity, private participation and public-private partnership, and integrated transport and land-use planning.
The section further permits strategic directions and actions for present and future transport challenges and other relevant matters identified by the Central Government.
Section 66B - Permit holders may apply for and hold licences under schemes
Section 66B removes a potential conflict between the ordinary permit system and licence-based transport schemes created under the Act.
A person holding a permit under the Act is not disqualified merely for that reason from applying for a licence under a scheme made under section 67(3) or section 88A(1).
If a licence is granted under such a scheme, the person is not required merely on that account to cancel the existing permit.
Section 67 - Power of State Government to control road transport
Section 67 authorises State Governments to issue transport-policy directions and to create schemes for improving transportation. The amended provision expressly includes effective competition among transport service providers as a relevant consideration.
Section 67(1): after considering the statutory factors, a State Government may by Gazette notification issue directions to the State Transport Authority and Regional Transport Authority concerning passenger convenience, economically competitive fares, prevention of overcrowding and road safety.
Section 67(2): the State Government may, subject to conditions it considers fit and for promoting effective competition, relax all or any provisions made under Chapter V.
Section 67(3): notwithstanding other provisions of the Act, a State Government may by Gazette notification modify permits or make schemes for transport of goods and passengers and issue licences under such schemes.
Purposes of a section 67(3) scheme
The statutory purposes include last-mile connectivity, rural transport, reducing congestion, improving urban transport, road-user safety, better use of transport assets, economic vitality and efficiency, accessibility and mobility, environmental protection, energy conservation, quality of life, and integration and connectivity across modes.
Under section 67(4), the scheme must specify matters such as fees, the form of application and grant of a licence, and renewal, suspension, cancellation or modification of the licence.
Section 72 - Grant of stage carriage permits
Section 72 governs the grant of stage carriage permits by a Regional Transport Authority. A stage carriage is a motor vehicle constructed or adapted to carry more than six passengers excluding the driver for hire or reward at separate fares paid by or for individual passengers.
The 2019 amendment added a proviso to section 72(2) permitting the Regional Transport Authority to waive a permit condition for a stage carriage operating in a rural area where the authority considers the waiver appropriate.
Section 74 - Grant of contract carriage permits
Section 74 governs grant of contract carriage permits. A contract carriage broadly operates under a contract for use of the vehicle as a whole for carrying passengers for hire or reward, subject to the statutory definition in section 2.
The 2019 amendment permits the Regional Transport Authority, in the interests of last-mile connectivity, to waive a condition under section 74(2) for types of vehicles specified by the Central Government.
It also added self-help groups to the categories referred to in the proviso to section 74(3)(b).
Section 88A - Schemes for national, multimodal and inter-State transport
Section 88A gives the Central Government a specific scheme-making power for national, multimodal and inter-State transportation of passengers and goods.
Section 88A(1): notwithstanding other provisions of the Act, the Central Government may by Gazette notification modify a permit or make a scheme for national, multimodal or inter-State transportation of goods or passengers and issue or modify licences under that scheme.
The statutory purposes include last-mile connectivity, rural transport, freight and logistics movement, better use of transport assets, economic vitality, accessibility and mobility, environmental protection, energy conservation, quality of life and integration between transport modes.
The Central Government may seek concurrence of State Governments before acting under section 88A(1).
Section 88A(2): two or more States may make schemes for inter-State transportation of goods or passengers within those States. If such a scheme conflicts with a Central Government scheme under section 88A(1), the Central scheme prevails.
Official legal and transport resources
India Code - Central legislation
Motor Vehicles Act, 1988 - official consolidated text