(1) Where, in pursuance of an approved scheme, any State transport undertaking applies in such manner as may be prescribed by the State Government in this behalf for a stage carriage permit, a goods carriage permit, or a contract carriage permit in respect of a notified area or notified route, the State Transport Authority in any case where the said area or route lies in more than one region, and the Regional Transport Authority in any other case, shall issue such permit to the State transport undertaking, notwithstanding anything to the contrary contained in Chapter V.
(2) For the purpose of giving effect to the approved scheme in respect of a notified area or notified route, the State Transport Authority or, as the case may be, the Regional Transport Authority concerned may, by order—
(a) Refuse to entertain any application for the grant or renewal of any other permit or reject any such application as may be pending;
(b) Cancel any existing permit;
(c) Modify the terms of any existing permit so as to—
(i) Render the permit ineffective beyond a specified date;
(ii) Reduce the number of vehicles authorised to be used under the permit;
(iii) Curtail the area or route covered by the permit in so far as such permit relates to the notified area or notified route.
(3) For the removal of doubts, it is hereby declared that no appeal shall lie against any action taken, or order passed, by the State Transport Authority or any Regional Transport Authority under sub-section (1) or sub-section (2).
Simplified Explanation
Section 103 of the Motor Vehicles Act deals with the procedure for issuing permits to State Transport Undertakings (STUs) for operating public transport services. This provision is essential as it establishes the rules under which state-run transport entities, like public bus services, are granted permits to operate within a defined area or on specific routes.
Key Aspects of Section 103
- Direct Issuance of Permits to STUs:
- State Transport Undertakings (STUs), such as public bus services, are granted special permits to operate public transport services without going through the competitive process required for private operators.
- This section empowers the government to directly issue permits to STUs for routes, areas, or services that are part of a government transport scheme under Chapter VI.
- Scope of the Permit:
- The permit may cover specific routes, regions, or entire districts, depending on the transport scheme. It allows the STU to operate services like buses, taxis, or other forms of public transport in those areas.
- The permit defines the terms of operation, including the type of vehicles allowed, the frequency of service, the route, and any fare structure that should be followed.
- Exemption from Competitive Process:
- Unlike private operators, who typically have to apply and compete for transport permits, STUs are exempt from this process. The state government has the authority to issue permits directly to its own transport undertakings to meet public transportation needs.
- Priority for Public Interest:
- The issuance of these permits to STUs is done with the objective of serving the public interest. The state government uses this provision to ensure that affordable, reliable, and widespread public transportation is available, particularly in areas where private operators may not provide sufficient services.
Permit Details
- Exclusive Rights:
- In some cases, the permit granted to an STU may give it exclusive rights to operate on specific routes. This means private operators cannot run competing services on those routes without special permission.
- The exclusivity ensures that the STU can provide stable and uninterrupted services, particularly in underserved areas.
- Service Quality and Conditions:
- The permit may include conditions related to the quality of service, safety standards, maintenance of vehicles, and the behavior of staff, ensuring that the public transport service is reliable and secure.
- Changes or Amendments:
- The government has the power to modify or revoke permits issued to STUs if necessary, based on changing public needs or transport policies.
Impact on Stakeholders
- For State Transport Undertakings (STUs):
- STUs benefit from direct issuance of permits, allowing them to operate public transport services without the delays or competition faced by private operators.
- This enables the government to quickly implement public transport schemes, providing essential services, especially in rural or underserved areas.
- For Private Transport Operators:
- Private operators may be impacted if the STU is given exclusive rights to certain routes. However, they can still operate on other routes not covered by the STU’s permit or apply for permits in areas where competition is allowed.
- For the Public:
- The public benefits from reliable and affordable transportation options provided by STUs. The direct issuance of permits helps ensure that essential routes are covered, and the public interest is prioritized over profit.
- It also allows the government to intervene quickly in situations where transport services are lacking or inadequate.
- For the State Government:
- The government is empowered to directly regulate and expand its transport services through STUs, ensuring efficient and accessible public transport, especially in regions where private operators may not be willing or able to serve.
Example of Application
If a state government decides to launch a public bus service to connect remote villages with nearby towns, it can directly issue a permit to the State Transport Undertaking under Section 103. This permit will allow the STU to operate buses on designated routes, ensuring that residents of these villages have access to public transportation.In summary, Section 103 of the Motor Vehicles Act allows state governments to directly issue permits to State Transport Undertakings (STUs) for the operation of public transport services. This provision ensures that public transport needs are met efficiently and prioritizes public interest over competitive processes, particularly in areas that may not be profitable for private operators.
