Reforming India's Public Transport: The Case Against the Permit Raj
India must retire the permit raj in public transport
Image: Hindustan Times
The Indian Ministry of Housing and Urban Affairs is conducting a survey across 13 states to understand the preference for private vehicles over public transport. The article argues for the abolition of the outdated permit raj that restricts public transport efficiency and innovation, advocating for a unified regulatory framework to enhance service quality and accessibility.
- 01The survey aims to assess urban residents' willingness to use public transport and their trust in government urban planning.
- 02The permit raj, rooted in the Motor Vehicles Act of 1939, creates inefficiencies and limits the growth of public transport.
- 03Private operators face barriers in providing high-quality services due to restrictive permit regulations.
- 04Illegal para-transit systems have emerged to fill gaps in public transport, complicating regulatory integration.
- 05Global examples show that deregulating service types while maintaining quality standards can significantly improve public transport efficiency.
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The Indian Ministry of Housing and Urban Affairs (MoHUA) has launched a multi-state survey in 13 states to explore why urban residents favor private vehicles over public transport. This initiative highlights the need to address the outdated permit raj, which has stifled public transport efficiency and innovation since its inception under the Motor Vehicles Act of 1939. The article argues that the current regulatory framework, which creates a binary classification of stage and contract carriages, limits the ability of private operators to provide high-quality services. As a result, overcrowding and poor connectivity plague Indian cities, leading to a reliance on illegal para-transit systems. The author advocates for a unified Public Service Vehicle framework that prioritizes service quality and accessibility, proposing reforms that decouple vehicle types from routes, legalize shared mobility, and open market access with safety and emissions standards. By moving away from archaic regulations, India can better address the challenges of rapid urbanization and climate change, ultimately enhancing its public transport system.
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The proposed reforms could lead to improved public transport efficiency and accessibility, addressing overcrowding and enhancing commuter experiences.
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