Power to State Government to control road transport.

1[(1) A State Government, having regard to--

1. (a) the advantages offered to the public, trade and industry by the development of motor transport;
2. (b) the desirability of co-ordinating road and rail transport;
3. (c) the desirability of preventing the deterioration of the road system, and
4. (d) promoting effective competition among the transport service providers, may, from time to time, by notification in the Official Gazette issue directions both to the State Transport Authority and Regional Transport Authority regarding the passengers convenience, economically competitive fares, prevention of overcrowding and road safety.]

1. (2) Any direction under sub-section (1) regarding the fixing of fares and freights for stage carriages, contract carriages and goods carriages may provide that such fares or freights shall be inclusive of the tax payable by the passengers or the consignors of the goods, as the case may be, to the operators of the stage carriages, contract carriages or goods carriages under any law for the time being in force relating to tax on passengers and goods: 2[Provided that the State Government may subject to such conditions as it may deem fit, and with a view to achieving the objectives specified in clause (d) of sub-section (1), relax all or any of the provisions made under this Chapter.] 2[(3) Notwithstanding anything contained in this Act, the State Government may, by notification in the Official Gazette, modify any permit issued under this Act or make schemes for the transportation of goods and passengers and issue licences under such scheme for the promotion of development and efficiency in transportation--
   • (a) last mile connectivity;
   • (b) rural transport;
   • (c) reducing traffic congestion;
   • (d) improving urban transport;
   • (e) safety of road users;
   • (f) better utilisation of transportation assets;
   • (g) the enhancement of economic vitality of the area, through competitiveness, productivity and efficiency;
   • (h) the increase in the accessibility and mobility of people;
     • (i) the protection and enhancement of the environment;
   • (j) the promotion of energy conservation;
   • (k) improvement of the quality of life;
   • (l) enhance integration and connectivity of the transportation system, across and between modes of transport; and
   • (m) such other matters as the Central Government may deem fit.
2. (4) The scheme framed under sub-section (3), shall specify the fees to be charged, form of application and grant of a licence including the renewal, suspension, cancellation or modification of such licence.]