Finance Minister Arun Jaitley today said that the Motor Vehicles Act will be amended to allow the participation of private sector in the passenger vehicle segment of road transport.
For this the government aims to provide an ecosystem which provide states to adopt a revised legal framework. This is done to boost road transport by empowering entrepreneurs to operate buses on various routes.
"An enabling ecosystem, which will be provided for the states which will have the choice of adopting the new legal framework. Entrepreneurs will be able to operate buses on various routes subject to safety and efficiency norms The major benefit of this game changing initiative will be the provision of more efficient public transport facilities, greater public convenience, new investments, creation of new jobs for the youth, growth of start-up entrepreneurs and other multiplier effects", Jaitley said.
This might lead to overhauling or scraping of permit system which is required presently to own and operate buses under a particular heading. Every year, bus operators obtain different permits, including single district permit, two districts and all-India permit for operating their buses.
Such a move will give a boost to bus sales benefiting bus manufacturers like Tata Motos, Mahindra & Mahindra, Ashok Leyland, Volvo, Scania to name a few.