The Ministry of Road Transport and Highways has proposed reforms to make cab rental businesses easier to start and operate, expand rental choices and strengthen passenger safety. The proposed framework combines simpler procedures with better customer support.

Key provisions

• Easier entry and more choice: Operators may offer cabs with or without drivers. The minimum fleet falls from 50 to 5, with at least 2 cabs per place of operation. The requirement for branches in five tourist cities is removed.

• One electronic licence: A single licence, valid across the State or UT for a uniform fee, replaces separate main and branch licences. Approved places of operation may include airports, stations and bus terminals.

• Timely approvals: Licence grants and renewals have a proposed 60-day timeline. Adding or removing cabs or places of operation has a 30-day deemed-approval mechanism.

• Less paperwork: Electronic VAHAN registers and automatic data retrieval simplify compliance.

• Safer journeys: Cabs must have location tracking, child restraint systems (optional) and first-aid kits. Operators must provide a website, 24-hour grievance support, emergency repairs and towing.

• Driver welfare and accountability: Operator-provided drivers would require police verification, with welfare under the Code on Social Security, 2020. Specified serious offences involving a cab or operator-provided driver will reduce operator’s licence validity.

• Fairer enforcement and easier appeals: Operators get time to correct non-material violations before suspension or revocation is considered. An appellate mechanism with electronic hearings is also introduced.

Intended impact

Ease of Living: Wider rental choices, safety equipment and round-the-clock grievance support will benefit renters.

Ease of Doing Business: Lower entry barriers and simpler licensing will support smaller businesses and employment opportunities.

Stakeholders affected

Renters, operators, drivers and State and UT transport authorities.

Implementation requirements

State and UT oversight, electronic licensing and VAHAN records will support implementation.

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GDH/DS

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