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Mr. Prasanna Patwardhan, Purple Mobility Solutions
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Requirement to Have New ACT
India has the second largest road network in the world
India’s Road Network has expanded from ~4 lac km in 1951 to ~47 lac km in 2011
India has a road density 1.42km/sq.km., which is the densest for a country of this size and compares favourably with other middle-income and emerging countries
ROAD TRANSPORT IN INDIA: Infrastructure
The last two decades have seen a dramatic increase in the overall number of vehicles used for road transport in India
The total number of vehicles is expected to increase 3-4x to 500-600 million by 2030
ROAD TRANSPORT IN INDIA: Vehicles
21
Million
(1991)
142
Million
(2011)
14
Million
(1991)
102
Million
(2011)
All Vehicles 2-Wheelers
ROAD TRANSPORT IN INDIA: Road & Rail
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1950-51 2010-11
Rail
Road
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1950-51 2010-11
Rail
Road
Freight Traffic Passenger Traffic
In last 60 years, the road sector has seen:
The share of freight traffic increase from 10 to 69%
The share of passenger traffic increase from 30 to 90%
The average vehicular speeds on India’s highways is significantly less than the global average, yet the number of deaths is higher by comparison
Highway speeds and road safety
19
1413
12
6
4
0
2
4
6
8
10
12
14
16
18
20
Death rate per 100,000
0
20
40
60
80
100
120
140
160
India Global average
Average truck speed kmph
30-55
60-140
Action required – road safety, speeds, and traffic conditions need improvement
Source: WorldLifeExpectancy.Com -
2011 , Deloitte research report - 2012
Although India spends less on logistics than most nations, its per ton-km total cost is 30-70% higher
Logistics spends – India and other countries
1373
515
240
138
0 500 1000 1500
USA
Japan
Germany
India
Spend on logistics (USD billion, 2007)
10
10
8
13
0 5 10 15
USA
Japan
Germany
India
Logistics as % of GDP (Percentage, 2007)
India, 13.8
India, 3.2
India, 1.9
USA, 10.8
USA, 1.9
USA, 1.1
0 5 10 15
Road
Rail
Costal Shipping
PPP adjusted unit cost
(USc per ton-km, 2007)
Sources: Industry trends, McKinsey
ROAD TRANSPORT IN INDIA: Demand
2012 2032
10,375
billion pkm
Overall Road Passenger Transport Demand Growth
168,875
billion pkm
16x
2012 2032
2,000
billion Tkm
Overall Road Freight Transport Demand Growth
13,000
billion Tkm
6.5x
Total Passenger Demand is expected to grow at 15.4% per annum over the next 20 years
Total Freight Transport Demand is expected to grow at 9.7% per annum over the next 20 years
To provide a framework for safe, fast, cost effective and inclusive movement for passenger and freight in the country thus enabling ‘make in India’
Vision Of The New Act
2 laclives to be saved in
first 5 years due to
reduction in road traffic
accident deaths
4% GDP improvement on
account of increased
efficiency and safety of
road transport sector
10 lac Jobs to created with
increased private
sector participation
Vision Of the New Act
To provide a framework for safe, fast, cost effective and inclusive
movement for passenger and freight in the country
The support the vision of ‘Make in India’ thereby contributing to
economic development of the country
Improve the Road Safety scenario of the country
Increase private sector participation in the road transportation
industry
Enable the adoption of state of the art technology for the road
transport sector
Guiding Principles of the Act
• To Facilitate seamless movement of People and Goods across India ;
• To Plan and develop transportation systems & infrastructure ;
• To Promote adoption of new Innovative technology;
• To Ensure public health and safety;
• To Promote low carbon, energy-efficient and environment-friendly road
transportation system;
• To Prevent the deterioration of the road and Transit improvement Infrastructure
network;
• To encourage competition and level playing field while designing scheme and
granting permits.
Old ACT New ACT
Ambiguous Act More clear Act.
Powers to Regulate: More to The State Government
More to The Central Government
Powers to RTO :Discretionary Limited powers and discretion
Focus of Regulation : Revenue generation To improve safety and convenience of people , efficiency and utilization of vehicle by ensuring smooth flow of traffic to make India globally competitive
Economic Regulator : No concept Central Government will act as regulator in certain cases
Principles of taxation and tariff regulation: No provision
Powers with Central Government clearly defined
Old ACT New ACT
Enforcement : Mostly by people Mandatory by electronic technology.
Highway enforcement - By multiple Authorities
By single Authority
Accountability of the officers /authority: Not defined
Clearly defined
Apply and payment transactions: By physical presence
Option through internet
Fitness test: only at the place of registration Anywhere in India
Transport system planning and development: By transport department of The State
By Independent accountable Authority at each level ( UMTA at City level)
Old ACT New ACT
Infrastructure development : No provision Plan to develop network across India by transport authority
Quality standards for roads and infrastructure : Not provided
Defined Quality standards for roads and infrastructure
Performance monitoring of Roads and Infrastructure : Not considered
Defined parameters with benchmarks, targets and timelines.
Multimodal integration: No provision Focused efforts to promote Multimodal integration
Vehicle and driver records; Manual and disintegrated
Unified, Centralized and digital
License to drive transport vehicle ; On the basis of educational qualification
On the basis of automated test of competence
Old ACT New ACT
Private sector participation : Not defined Provision to outsource Licensing and fitness test center
Time bound delivery of services by officers : Not defined
Time bound delivery of services by officers is defined with penalty
Training of people : No defined responsibility Defined responsible Authority
Public Transport Systems: Low focus on development
High focus with defined steps
Public transport Operators : Favorable to Government undertakings
Open to Public, Private and PPP
Control of Interstate movement of transport vehicles : By the State Government
By the Central Government
Old ACT New ACT
Publishing of Information: No provision Specific provisions to publish information of public transport about routes, schedules and fares across India
Type approval : time limit not defined Provision of deemed approval after six months
Obligations of Manufacturer: Not defined Provision to recall faulty product by giving refund
Fuel efficiency monitoring: Not provided Defined monitoring systems by National Authority
Supply of spare parts: Monopoly by vehicle manufacturer
Approval system open to anyone who wish to manufacture spare parts like ISI mark
Retro fitment : No clarity Special provision to protect warranty and insurance claims
Old ACT New ACT
Variation in GVW Five percent permissible
Claim settlement: timelines not defined Third party Claim settlement: Provision to limit
Claim settlement: timelines not defined Timelines defined to submit report and make settlement , award of settlement payment and distribution of money with specific provisions
Immediate relief to accident victims : no provision
Introduction of Golden hour free medical treatment from Insurance fund
Penalty: only to driver and owner Additionally to concern officer, toll operator, consigner and manufacturer
Double Penalty – Double ,to driver and owner both in many cases
Single Penalty – To either driver or owner or Consigner
Penalty: More discretionary , In many cases on the basis of officers judgment
Penalty: High usage of technology is prescribed to bring in transparency
Motor Vehicle Regulation & Road Safety Authority of India
Dedicated focus
and institutional
setup to save
more than
200,000 lives in
first 5 yrs
Independent agency for
vehicle regulation and
road safety
Legally empowered & fully
functional agency,
accountable to Central
Government.
Financial independence with
innovate financing
mechanism for continued
safety program
Vehicle Regulation and Road Safety Authority
Objectives of The Authority
• to ensure smooth flow of traffic by removing impediment
• To eliminating practices that are adverse to Transportation and Road Safety
• To promote innovation and new technology.
Uniformity across India in relation to Motor Vehicles in
• Unified Vehicle Registration and Driving licenses
• Vehicle Design, Production, Maintenance, and End-of-life
• Vehicle spare parts and related Equipment's.
• Procedures to test vehicles, Drivers , Training and Working environment;
Define & Regulate Safety Standards for
• The Design, Constructing , Maintenance and Performance of roads and Transit improvement infrastructure
Define Traffic Rules to ensure Safety of
• Road users and Vulnerable Road users ;
• Passengers & Goods being carried by Transport Vehicles
Vehicle Regulation and Road Safety Authority
Promote New Technology in
• Manufacturing, Maintenance and Operations of Motor Vehicles
• Services offered by Transport Vehicles
• Traffic Monitoring & Regulation
Improve Efficiency by
• Encouraging fair competition,
• Adopting Innovation and Efficient practices;
• Encouraging economical use of resources
• Introduction of Public Private Partnership schemes;
• Defining and establishing Performance standards;
Develop and maintain a National Unified Information System for
• Driving Licences and Penalty points their on
• Motor Vehicles Produced, Registered , Insured and given Permits,
• Traffic offenses
Capacity building and Training
• Establish training centers for Drivers , Police and Government officers
•
Vehicle Regulation and Road Safety Authority
Act as Economic Regulator for the purpose of determining
• Costs of mandatory safety equipment to be installed in Vehicles.
Issue Guidelines for
• Categorization and types of roads
• Methods of data collection
• Electronic payment of fees and fines
• Inspection , audit and rating of assets
• Establishing Testing centers for vehicle fitness and driver licensing
• Evaluation and enforcement of this act
Set Quality standards for
• Service delivery by Transport vehicles
• Roads and Transit improvement infrastructure
• Technology to be used
Research & Development
• Encourage R&D in manufacturing, Maintenance, Operations and services
• Technology to be used
Regulation of Motor Vehicle
Promote innovation and
technology adoption
Create new economy
around spare part
production
Improved vehicle design
for safer travel
Time-bound vehicle
type approval to
promote innovation.
Conformity to make
spare parts cheaper
SPARES
Motor Vehicle Regulation
Facilitate free flow of interstate traffic
• Uniform vehicle designs and operating rules through out India.
Faster adoption of new technology
• Provision of deemed vehicle type approval in six months.
Certificate of Compliance
• will improve availability of Genuine spare parts at most competitive rates.
Retro fitment
• Possible without losing on warranty and insurance claim
Allowable variation in GVW - Five per
Assured Safety
• Compulsory safety assessment test before type approval
Assured Quality
• Manufacturers to recall vehicles if found faulty and pay back received money.
Liability and obligation of manufacturers
• If accident is caused by the Manufacturing defect then compensation shall be paid by the manufacturer.
Unified Driver Licensing System
Simplified application and
issuance procedures for
driver licensing system
Unified biometric system
to avoid duplication.
Technology adoption for
driver testing facilities
Transparent, single
window driver licencing
system. Automated
driving test for increased
capacity with private
sector particicaption.
Unified Driver Licensing system
Unified license system throughout India
• Unique number , Easy to apply, renew , change of address and track Performance;
Easy availability of drivers
• Educational qualification and two years experience to get license to drive transport vehicle is not required ;
Hassle free
• Apply for New or Renewal of license from anywhere in India.
Time bound service delivery
• Will get license within specified time
Wide Network and efficient delivery
• PPP Scheme for processing to make system efficient and easily accessible
Ensure Transparency
• Mandatory use of Automated driving test and its Recording.
Establish discipline
• Penal point system to be recorded on the license for further actions
Unified Vehicle Registration System
Unified registration in a
dynamic information system
Manufacturer, owner,
transport authority, insurer,
enforcement agency all in
one eco-system
Private sector participation in
establishing fitness centres
Integration of all
stakeholders.
Easy (online) transfer of
vehicles across states.
Increased private
sector participation to
create more jobs
Unified Vehicle Registration System
Easy Procedure
• Possible to apply for Registration, take Fitness test , Transfer and Change of address across India electronically;
Integrated System
• Data of various stakeholders such as Manufacturers, Registering and Permit issuing Authorities, Insurance companies, Traffic enforcement agencies, Testing centres is integrated at a single IT platform;
Uniform Motor Vehicle Tax
• Principle of taxation for interstate movement will be defined by Central Government.
Display of unique identification mark
• For easy readability and automation of traffic regulation
Wide Network and efficient delivery
• PPP Scheme for Fitness centers to make system efficient and easily accessible
No suspension on the grounds of breach of permit conditions
National Road Transport & Multimodal Coordination Authority
Single national authority
for improving quality of
road transportation
Focus on developing
integrated transport
systems & multi-modal
hubs
Feeder system and last
mile connectivity for
people friendly mobility
Institutional setup to
facilitate ‘Make in
India’ vision. Seamless
movement of goods
and passengers
across various modes
Road Transport and Multimodal Coordination Authority ( National & State )
Objects
• Plan and develop integrated, safe and sustainable transport systems
• Seek to increase share of Public Transport by improving quality standards
• To promote economic prosperity through efficient and reliable movement of goods and passengers.
Focused committee to develop and monitor
• Road standards for safe and smooth movement of Passenger and goods;
• Traffic management to ensure smooth flow of traffic;
• Transit improvement infrastructure;
• Multimodal Coordination within transportation by Road, Rail, Air and Sea;
Collaborative Planning and development
• With Central and State Governments , Various Transport Bodies ,Public entities, land holding agencies, and Passenger and Goods transport system operators.
Road Transport and Multimodal Coordination Authority ( National & State )
Promote Public Transport
• Through Public or Private transport companies or Public Private Partnerships .
• Ensure fair competition by providing level playing field
• Expand the network to increase the reach and share of Public transport.
Facilitate growth in GDP
• By ensuring free movement of Passenger and Goods vehicles by reducing hindrances on road
• Increase vehicle and other asset utilisation to international standards
• Facilitate consolidation of goods by developing required infrastructure
Development of Infrastructure
• Truck , Bus and Multimodal terminals at strategic locations;
• Connecting corridors to Railway stations, Air and Sea Ports;
• Transit improvement infrastructure for the smooth and safe movement of passengers and goods.
Multimodal Integration
• Identify places of integration at Cities, Industrial areas, Sea ports , Airports, and Railway junctions in Coordination with Respective authorities.
Road Transport and Multimodal Coordination Authority ( National & State )
Make frame work for Operating systems • Design and frame Schemes; • Define service level benchmarks, quality norms and performance parameters; • Targets dates to achieve objectives stated in the scheme; • Regulate schemes and Permits for Passenger and goods transport;Economic regulator• To determine principles of taxation on interstate movement of transport vehicles
• Rates to be charged for usage of Transit improvement infrastructure.Determination of tariff• For inter-State permit by National Transport Authority • For Intra-state permit by State transport authority.Single window service for Permits• Electronic submission, issuing of permit , collection of fees and their state wise
distribution to facilitate completion of activities in time bound and transparent manner
Fleet management policy• Person having more than one vehicle to have fleet management policyCollect and publish information on• Route Maps, Schedules, fares and time tables
Public passenger Transport
Increasing the share of
public passenger
transportation
Two-tier permit system -
national and intrastate
permit
Developing & regulating
public transport schemes
Promoting eco-friendly
public transportation
for improving road
safety, cost-
effectiveness.
Passenger Transport
Plan
• Local , State and National Authority to plan for their respective areas.
Scheme on the basis of Plan
• Relevant Authorities will prepare a scheme defining , Area covered, Duration, Tariff, Operator qualifications , Selection criteria , Permit conditions, Rules of operations and Transition plan etc.
Approval of Schemes
• Interstate By National Transport Authority and within The State by State Transport Authority.
Integration of Transportation
• National Transport authority will ensure integration of within state and interstate movement of vehicles
Only two types of permits
• National Passenger Transport Permit and State Passenger Transport Permit .
Issuance of Permit
• Implementation agencies will issue Permits as defined in the Scheme;
Passenger Transport
• Three type of category of services- Schedule , Charter and Meter
• Three sub categories –
1. Restricted schedule service – operates on less than 125 Km route. With individual ticketing on fixed schedule.
2. Restricted Charter service – Attached vehicles by agreement with school or factory
3. Restricted meter services – Vehicles smaller than 12 seat used on sharing basis on fixed routes.
• Schedule of implementation- The authorities will define process of implementation within two years.
• No temporary Permit - No transport vehicle to get registration and permission to ply without having permit declared under the scheme.
• Facilitation of Interstate movement – No state will prevent or hinder movement of vehicles having National Passenger Transport Permit.
• Power to obtain information from the Operator – National authority may ask operator to submit information related to his services.
Goods Transport & National Freight Policy
Simplified permits with
online payment and
single portal clearances
Identification and
development of freight
network
Address bottlenecks
concerning trucking
industry
Increase in logistics
efficiency will reduce
inflation and enable
Indian manufacturing
to become globally
competitive
Goods Transport
Designate a Freight network
• Collect OD data on movement of Goods and Trucks on Main National and State highways;
National freight strategic plan
• Develop a strategy for efficient movement of goods within two years;
• Identify bottlenecks and find solutions to remove them to streamline traffic;
• Find out means to fund the projects through Public or Private entities;
State Freight strategic plan
• Develop plans , solution and generate fund required for development within The State;
Issues Permits
• National Permit By National Transport Authority
• State Permit By State Transport Authority.
Facilitation of interstate Movement
• No state will prevent or hinder movement of vehicles having National Passenger Transport Permit.
Taxation on Goods vehicles
• Central Government will decide principles of Taxation
Infrastructure & Multimodal Facilitation
Infrastructure for
passenger and goods
movement
Specific provision for
infrastructural needs of
vulnerable road users
Integration across
various modes of
transport
Dedicated
infrastructure will
improve safety.
multimodal integration
will improve reliability
and lower the cost of
transportation
Infrastructure
Transit Improvement Infrastructure development
• Includes Terminals, Parking places, Rest areas, Footpaths, cycle tracks etc;
Plan
• Authority to identify locations, Plan and Develop network of such facilities across the county.
Develop
• Authority will provide Rules and Guidelines for operation;
• Stipulate procedures for development;
• Find means to fund the projects through Pubic or Private identities
Define Standards
• Issue guidelines on operating procedures and standards;
Make Regulations
• National Transport Authority will make rules and regulations related to the development and operation of Infrastructure
Road Safety & Traffic Management
Provision for enforcement
of modern safety
technologies
Creation of a motor
accident fund for
immediate relief to
accident victim
Special emphasis on
safety of school children
and security of women
Electronic
enforcement in urban
clusters.
Special emphasis for
safety of vulnerable
road users
Road Safety and Traffic Management
Unified Road accident and offenses systems
• National Authority to develop centralized standard system to record accidents and offenses made by vehicles and drivers in two years.
Unauthorized sale of Protective & visibility gear
• No manufacturer will sell safety wear’s without approval of National Authority.
Seat belt children
• Child below eight year not to occupy front seat.
Seat belt for bus passengers
• Owner liability is limited to making announcement and putting up signs.
Parking of heavy vehicles
• for loading unloading on foot paths ensuring putting up of adequate signs.
Restricted roads , Child zones
• Special rules & Speed limits
Priority to Ambulance and fire brigade
Over all vehicles including VIP,VVIP movement.
Speeding offenses for Transport Vehicles
Providing non practical schedules to the driver by transport companies
Road Safety and Traffic Management
Tampering with the vehicle without owners permission• On road or Public place;Disruption of flow of traffic• Not to disrupt even NMT and pedestrian traffic .Responsibility to stop overloading• Toll operators and Police officers Responsibility of overloading• On owner and consigners.Electronic Enforcement• Mandatory for the cities listed by the Central Government.Nation wide emergency number• Toll free single National number Duty of driver in case of accident• To admit victim in the hospital.Duty of doctor• To immediate start treatment without waiting for FIR or Money.Duty of Driver while crossing unguarded Railway line• Must stop, get down and inspect it by himself or attendant before crossing.
Insurance of Motor Vehicle against Third Party
Limited Liability of Insurance companies
• Liability of insurance company in Third Party claim will be limited;
Process of settlement
• Report of claim amount acceptance by insurance company within 30 days , if accepted by claimant then pay in 30 days the entire amount;.
Report by investigating officer in 24 hours
• Investigating officer to give report in 24 hours and file FIR in standard format with claim tribunal in 15 days;
Golden hour
• Duty of driver to admit, duty of doctor to treat and duty of Insurance companies to take responsibility of treatment;
Motor Accident fund
• By levy of Cess or Percentage of insurance premium
• To be utilised for treatment of people during golden hour or in cases of hit and run;
National Highway Force
To ensure efficient
movement of passenger
and freight.
To help accident victims,
support investigation and
prepare independent
report.
To enforce traffic
regulation and reduce
road crash trauma;
State Government to
constitute and maintain the
force.
All appointments to be done
by The State Government.
Highway traffic regulation and protection force
• A Special force to Regulate traffic and ensure safety of the users on Highways.
• State Government to constitute and maintain the force.
• All appointments to be done by The State Government.
Functions of the Force
• To enforce traffic regulation and reduce road crash trauma;
• To ensure safety of transport vehicles and other assets
• To ensure efficient movement of passenger and freight.
• To help accident victims, support investigation and prepare independent report.
Powers of the Force
• To arrest without warrant in certain cases
• To prepare detail accident report in given format.
Restrictions on force
• To form union or association
Offences and Penalties
Combination of penalty&
fines to enforce traffic
rules
Strict enforcement for
driving under the
influence of drugs &
alcohol
Electronic detection &
centralised offences
information to identify
repeat-offenders
Graded penalty point
system will act as a
deterrent and improve
traffic condition by
reducing road rage
Offenses and penalties
Punishment to offenses
• Offenses will be punishable with one or more penalties in the form of fines, imprisonment, impounding of vehicle, award of penalty points, cancellation of license, registration or permit, compulsory training as specified by National Authority;.
Penalty points
• For each offence license holder gets penalty points loaded on the License depending on which punishments or Incentives will be decided
Other important fines & penalties
• Holding two licenses not allowed
• Punishment to manufacture faulty vehicle
• Punishment to officers, contractors for non compliance with safety standards while constructing or maintaining the roads.
• Provision to punish Officer or Service provider if service are not provided within defined time frame;
Miscellaneous
• No retrospective effect
• Use of Technology
• Co-operative citizens enforcement
• Right of way to emergency vehicles.
