Government issues new guidelines to regulate shared mobility, reduce traffic

The Ministry of Road Transport and Highways has issued the Motor Vehicle Aggregator Guidelines 2020 as per the requirements and provisions of the Motor Vehicles (Amendment) Act, 2019 and further as per the amended Section 93 of the Motor Vehicles Act, 1988.

The guidelines aim to regulate shared mobility and reduce traffic congestion and pollution, according to a release by the Ministry of Road Transport and Highways.

The Motor Vehicles Act, 1988 has been amended by the Motor Vehicles Amendment Act, 2019 to include the definition of the term 'aggregator'. "Prior to the amendment the regulation of Aggregator was not available," the ministry said.

The guidelines provide for a license issued by the State Government is a mandatory re-requisite for permitting business operations by the aggregator.

The ministry said that the guidelines specified by the Central Government for regulating the aggregators may be followed by state governments.

The guidelines seek to establish a regulatory framework for aggregators by State Governments to ensure that the aggregators are accountable and responsible for the operations executed by them, it said.

The Ministry vide notification dated October 18, 2018, has exempted the electric vehicles and vehicles running on Ethanol or Methanol from the requirements of Permit. The State Governments to facilitate operations of such vehicles.

The proposed guidelines will ensure regulation of aggregators, eligibility conditions/qualifications for of an entity to be an aggregator, compliances with regard to vehicles and drivers, compliances with regard to Aggregator App and Website, manner of fare regulation, evolving concepts like pooling and ride-sharing in private cars and license fees/security deposit and powers that the State Governments among others.

In a communication to all the States and Union Territories today, the Ministry has stressed upon implementing these guidelines.