The Motor Vehicles (MV) Act, 1988 governing motor vehicles and transport is largely outdated.
It lacks the provisions that are necessary to manage the present fast motorisation.
Especially, the passenger transport sector operating for inter-city services has grown with vested interests.
This is a result of exploitation of the lack of transparency and regulatory bottlenecks.
So with a transparent system, professional new entrants can come into the sector.
Also, State-run services have not kept pace with the times.
E.g. investments in the urban metro rail systems are yielding poor results in the absence of last-mile connectivity services.
These lacunae have to be addressed to improve road safety, ensure orderly use of vehicles and expand public transport.
But the bill faces opposition from the states.
What are the concerns?
Some state governments are concerned about the new provisions, Sections 66A and 88A.
This will empower the Centre to form a National Transportation Policy.
Notably, it would be through a process of consultation, and not concurrence.
It will also enable Centrally-drafted schemes for national, multi-modal and inter-State movement of goods and passengers, for rural mobility and even last-mile connectivity.
The provisions would bring in a new paradigm that would overhaul the sector, and hence the States see it anti-federal.
Clearly the issue is not one of legislative competence as the subject is in the Concurrent List.
So clearly, parliament can make a law defining powers available to the States.
The opposition is thus more due to the perceived shift of power from the States to the Centre.
What is the way forward?
Well-run bus services have to be enabled to operate across States with suitable permit charges.
This is an imperative to meet the growing needs of a transforming economy.
The regulatory changes could contribute to fostering competition, reducing fares and increasing services.
Other provisions on road safety, fines and curbing corruption need proper enforcement.
A professional accident investigation agency has to be put in place to determine the best practices.
In all, an equitable regulatory framework has to be created for the orderly growth of transport services.
States should thus reconsider their opposition to amendments to the Motor Vehicles Act.
The passage of the Bill would also help meet the UN mandate to reduce road accidents up to 50% by 2020.
