Maharashtra To Disband Licence Permit Raj For Autorickshaws And Taxis

Taxis in Mumbai (Vijayanand Gupta/Hindustan Times via Getty Images)

Bringing out a major reform, the Government of Maharashtra started the process of ending the Licence Permit Raj for autorickshaws and taxis in the state reported Moneycontrol. Ending the need for permits in Mumbai, Nagpur, Nasik, Pune, Aurangabad and Solapur on 17 June, the government has discontinued its earlier order limiting the number of vehicles on the roads.

Bajaj Auto CV Business president R C Maheshwari told the Financial Express that other states are expected to follow suit. The growth of the market was stunted with more than 60,000 dead permits putting high pressure on drivers to recover the cost.

The government order to restrict the number was brought into effect in 1997 under the then Chief Minister Manohar Joshi. The state government has amended the laws in accordance with the new provisions in the Central Motor Vehicles Rules.

Permits will no longer be roadblocks in this market and this will help create employment opportunities. Mumbai also has a latent demand for autos which will open up.
R C Maheshwari

Traffic in Mumbai (Sattish Bate/Hindustan Times via Getty Images) Traffic in Mumbai (Sattish Bate/Hindustan Times via Getty Images)

Sales of autorickshaws were indirectly connected to the number of permits issued each year. A Society of Indian Manufactures' Performance of Auto Industry 2016-17 report stated that three wheeler sales declined by 4.93 per cent in April-March 2017 while the passenger segment showed de-growth by 8.83 per cent over the same period last year.

Exactly a year ago, Maharashtra had allowed private buses to ply in the Mumbai Metropolitan Region without needing a permit. Understandably, the move was criticised by unions of state-owned and city-owned transport bodies in the region.

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