Maharashtra to end Permit Raj for autos and taxis

Maharashtra has kickstarted the task of ending the ‘Permit Raj’ for autorickshaws and taxis in cities across the state.

The state government ended the need for permits in Mumbai, Thane, Pune, Nagpur, Nashik, Aurangabad and Solapur on June 17 after it discontinued the order that imposed limits on the number of these vehicles on the roads.

Now other state governments are expected to follow, RC Maheshwari, president CV business, Bajaj Auto Ltd, told Financial Express.

Over 60,000 dead permits across Maharashtra affected the growth of the market as it pressurised the drivers to recover the high permit cost.

Permits will no longer be roadblocks in this market and this will help create employment opportunities, Maheshwari said.

These restrictions were in place since 1997 where the government order had limited the permits. The Maharashtra government has made amendments as per the new Central Motor Vehicle Act of the central government.

The sales of autorickshaws were directly related to the number of permits issued by every state.

According to Society of Indian Manufactures' Performance of Auto Industry 2016-17 report, the three wheeler sales declined by 4.93 percent in April-March 2017  with passenger segment showing de-growth by 8.83 percent over the same period last year.

Doing away with permits in Maharashtra will be good news for the three-wheeler segment in India, especially Bajaj Auto, which has 96 percent share in the petrol segment.

Mumbai also has a latent demand for autos which will open up, Maheshwari said.