The proposal made by the central government’s think tank NITI Aayog to allow ridesharing firms such as Ola and Uber to rope in private vehicles as cabs has not found favour with the Ministry of Road Transport and Highways, reports the Economic Times.
The Ministry has stated that there are no provisions in the Motor Vehicles Act which would allow private vehicles to ply as taxis.
We have to protect the interests of over 5 million taxi owners who have paid commercial duties and permit fees to run taxis. Their employment cannot be endangered and also allowing private cars would be something like doing away with the concept of taxis. Even if it’s a lot of convenience, various legal aspects also have to be kept in mind. Even if it’s allowed, some registration mechanism for such cars has to be found.An official of the Ministry of Road Transport and Highways
Vehicles for commercial use attract higher costs in terms of permits, licences and insurance premiums. With 20 cars for every 1,000 people in India, the proposal was made to enable private vehicles – that lie under-utilised most of the time – to be used as taxis so that more vehicles can meet the demand during peak hours.
Also Read: Modi Govt Comes Out With A Very Liberal Taxi Policy Framework. Here’s What You Need To Know
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