By Amit Bhatt, WRI India Sustainable Cities

1. A product of WRI Ross Center for Sustainable Cities
AMIIT BHATT
Sept 19, 2016
THE MOTOR VEHICLE
(AMENDMENT) BILL 2016
INDIA VISION ZERO
BHUBANESWAR 2016

2. ROAD TRANSPORT SECTOR – SNAPSHOT

3. 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

4. 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

5. 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%

6. ROAD TRANSPORT SECTOR – Issues & Challenges

7. PER DAY
UN-
NATURAL
DEATHS
ROAD ACCIDENTS
Source: National Crime Records Bureau ADSI 2012
ROAD SAFETY SCENARIO IN INDIA

8. 105,000
110,000
115,000
120,000
125,000
130,000
135,000
140,000
2008 2009 2010 2011 2012
No. of Road Accidents
ROAD SAFETY SCENARIO IN INDIA

9. 15
1
5
20
0
Children (<14 yrs) are killed every
day in road accidents in India
People are killed
every
hour in road accidents
in India
Million people were seriously
Injured or disabled
in road accidents
in India in the past decade
Million
people died in road
accidents in India in the past
decade
3%
Annual GDP loss to India
due to road accidents
Statutes to protect
children on the road

10. 70
300
120
5
600
Thousand +
two wheeler riders died in the past
decade
Thousand people can be
saved every year with timely
emergency medical care
Thousand +
Vulnerable road users
killed in road accidents
in the past decade
Thousand + people died in bus
crashes from just 5 states in India in 2012
2001
The year in which
MVA was updated
Thousand + pedestrians died in
road accidents in the past decade

11. 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
14
13
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

12. 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

13. Inefficiencies in freight transport will result in wastage of over 1% of
India’s total commercial energy consumption
INCREASED WASTE AND EMISSIONS
- Shortage of
rail and
interchange
resulting in
imbalanced
mode mix
(road share
increases
from 57% to
70%)
- Increased
pressure on
already
congested
road
networks
- More traffic
on expensive
modes leads
to higher
transport
costs
- Slower
average road
speeds leads
to higher
inventory
levels
45
95
140
2007 Increase till 2020 TOTAL (2020)
0
20
40
60
80
100
120
140
160
Logistics-related waste (USD billion)
Waste
% of GDP
Emissions
Million tons CO2
equivalent
4.5 - 5
11565 180

14. 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

15. ROAD TRANSPORT LEGISLATIONS

16. Indian Motor Vehicles Act, 1914
Motor Vehicles Act, 1939
A working group was, therefore, constituted in January, 1984
to review all the provisions of the Act of 1939.
The motor Vehicles Act 1988
MV Act 1988 has so far been amended three times in the
years 1994, 2000 and 2001
Sundar Committee Report
Road Transport & Safety Bill 2014 (Draft)
Motor Vehicles Amendment Bill 2016 (Draft)
HISTORY OF TRANSPORT LEGISLATION

17. GLOBAL COMPARISON OF MV ACTS – VEHICLES

18. GLOBAL COMPARISON OF MV ACTS – USERS

19. GLOBAL COMPARISON OF MV ACTS – DRIVERS

20. GLOBAL COMPARISON OF MV ACTS –
INFRASTRUCTURE

21. GLOBAL COMPARISON OF MV ACTS – REGULATION

23. MV AMENDMENT BILL – HIGHLIGHTS

24. MV AMENDMENT BILL – HIGHLIGHTS

25. MV AMENDMENT BILL – HIGHLIGHTS

26. MV AMENDMENT BILL –
SUMMARY

27. KEY FEATURES – DETAILS
• New terms defined- ‘adapted vehicle’, ‘aggregator’, ‘community service’, ‘driver
refresher training course’, ‘golden hour’, ‘scheme’ and ‘testing agency’.
• Section 2B (inserted)- It seeks to provide flexibility to the Central Government to
exempt new technologies, inventions or innovations from the provisions of the
principal Act to promote innovation.
• Section 8 (amended)- It seeks to simplify the process of obtaining a learner’s
licence. The applicant will also be able to apply to any licensing authority in the State
or use online means to submit the application, fee and other documents. The
learner’s licence could then be provided in electronic form.
• Section 9 (amended)- It seeks to simplify the process of obtaining a driver’s licence
in the same manner as obtaining learner’s license.
• Section 10 (amended)- Here, the term ‘invalid carriage’ is proposed to be replaced
with the term ‘adapted vehicle’, in order to take a more sensitive approach towards
the mobility needs of the differently abled.
• Section 14 (amended)- It seeks to increase the length of time for which a driving
licence shall remain valid.
• Section 15 (amended)- It seeks to allow a licence holder to apply for renewal of
licence any time in a window of six months before expiry of licence and six months
after.

28. KEY FEATURES – DETAILS
• Section 19 (amended)- It seeks to provide for disqualification from holding driving
licence and revocation of driving licence of drivers found to commit certain traffic
offence. They will also be required to complete a driver refresher training course, as
prescribed by the Central Government.
• Section 25A (inserted)- It seeks to establish a National Register of Driving Licences
containing data on all driving licences issued throughout India by assimilating data
from all state registers.
• Section 41, 43, 44 (amended)- Changes in these section are around registration of
new motor vehicles by dealers, penalties for dealers who fail to register a new motor
vehicle and removing the requirement of producing the motor vehicle before the
registering authority at the time of registration.
• Section 49 (amended)- It seeks to simplify the process for recording change of
residence on registration certificate by making it online. There will also be increased
penalty for not providing the new information on time.
• Section 55 (amended)- It states that a registering authority can cancel registration of
a vehicle, if it is suspected of being used for an offence.
• Section 56 (amended)- It states that no certificate of fitness shall be granted to a
vehicle, after October 1, 2018, unless the vehicle has been tested at an automated
testing station.

29. KEY FEATURES – DETAILS
• Sections 62A and 62B (inserted)- Section 62A seeks to prohibit the registration of
oversized vehicles and issuance of certificates of fitness to such vehicles. Section
62B seeks to establish the National Register of Motor Vehicles that shall contain data
on all motor vehicles registered throughout India.
• Section 66A and 66B (inserted)- 66A It seeks to empower the Central Government
to develop and implement a National Transportation Policy. 66B states that permit
holders shall not be disqualified from applying for a licence under a scheme for the
transportation of goods and passengers.
• Section 67 (amended)- Empowers the State Government to issue directions to the
State Transport Authority and the Regional Transport Authorities to safeguard the
convenience of passengers, prevent overcrowding, promote road safety and provide
economically competitive fares.
• Section 72 (amended)- It states that the Regional Transport Authority may relax
condition for a Stage carriage permit if it helps rural transport.
• Section 74 (amended)- It looks at empowering the Regional Transport Authority to
waive any permit condition for a contract carriage to promote low cost last mile
connectivity solutions. It also states that priority will be given to self-help groups for
issuing permits.
• Section 88A (inserted)- It empowers the Central Government to modify permits and
make schemes for inter-state transport of goods and passengers.
• .

30. KEY FEATURES – DETAILS
• Section 93 (amended)- It seeks to provide formal recognition to transport
aggregators and details out their role. Later Section 193 is amended to add penalties
for offences by them.
• Section 110A and 110B (inserted)- It empowers the Central Government to recall
vehicles that do not meet quality standards. 110B seeks to issue type approval letters
and regulations for testing agencies.
• Section 116 (amended)- It seeks to remove advertisements from National Highways
that may be distracting for commuters.
• Section 129 (amended)- It makes the rule for wearing helmets more stringent. It
states that any person above 4 years of age- rider, pillion or being carried- will have
to wear helmets.
• Section 134A (inserted)- It provides for protection of ‘Good Samaitans’ who help in
getting medical aid for persons injured in road accidents.
• Section 135 (amended)- It empower the State Government to make schemes for
any amenities in the interests of the public. It also empowers the Central Government
to make schemes for in-depth studies and analysis of causes of road accidents.
• Section 136A (inserted)- It seeks to allow electronic monitoring and enforcement. It
provides for body-wearable cameras for data collection.

31. KEY FEATURES – DETAILS
• Section 138 (amended)- It empowers States to regulate pedestrians and non-
motorised transport. The existing Act does not mention pedestrians anywhere and
hence, does not provide for any rules/guidelines for their safety. It is the only time
pedestrians are mentioned in this bill as well.
• Chapter X- Sections 140 to 144 (omitted)- The entire chapter has been deleted. It
discussed the liability of paying compensation to road accident victims. Some
provisions have been made part of chapter XI.
• Chapter XI- Sections 145 to 164 (amended)- This entire chapter on insurance and
compensations has been amended and made anew. This chapter aims to simplify the
third party insurance for motor vehicles. It empowers the Central Government to
prescribe the premium and the corresponding liability of the insurer for the policy. A
new Section 164B has been added to establish Motor Vehicle Accident Fund.
• Chapter XIII- Sections 177 to (amended)- Several Sections in this chapter on
penalties have been amended to increase penalties for traffic offences. Some of the
interesting new additions include stringent laws for juvenile offenders, aggregators,
excessive honking and those related to registration of vehicles. Another addition is
that of prescribed hours for community service as penalty for some offences. These
did not exist earlier. Details of penalties are mentioned below in table 1. Additionally,
the state government holds the power to increase the penalties further.

32. PREVISIONS ON AGGREGATORS
• Aggregator
– It means a digital intermediary or market place for a
passenger to connect with a driver for the purpose of
transportation
• Rules
– They will not engage as an agent in the business of collecting,
forwarding or distributing goods carried by goods carriages.
– While issuing the licence to an aggregator the State
Government shall follow guidelines of the Central Government
– Every aggregator shall comply with the provisions of the
Information Technology Act, 2000 and the rules and
regulations
• Penalty for aggregators-
– Operating without license- Rs 1000 for first offence ; Rs 2000
and 6 months imprisonment for second offence
– Not following all rules of section 93 of the MV Act- fine of Rs
25,000 to Rs 100,000

33. KEY FEATURES – PENALTIES
Section Details Existing Provision Proposed Provision
177 General Rs 100 Rs 500
New 177A Rules of road regulation violation Rs 100 Rs 500
178 Travel without ticket RS 200 Rs 500
179 Disobedience of orders of authorities Rs 500 Rs 2000
180 Unautorized use of vehicles without
licence
Rs 1000 Rs 5000
181 Driving without licence Rs 500 Rs 5000
182 Driving despite disqualification Rs 500 Rs 10,000
182 B Oversize vehicles New Rs 5000
183 Over speeding Rs 400 Rs 1000 for LMV
Rs 2000 for Medium passenger vehicle
184 Dangerous driving penalty Rs 1000 Upto Rs 5000
185 Drunken driving Rs 2000 Rs 10,000
189 Speeding / Racing Rs 500 Rs 5,000
192 A Vehicle without permit upto Rs 5000 Upto Rs 10,000
193 Aggregators (violations
of licencing conditions)
New Rs 25,000 to
Rs 1,00,000
194 Overloading Rs 2000 and Rs
1000 per extra
tonne
Rs 20,000 and
Rs 2000 per extra tonne

34. KEY FEATURES – PENALTIES
Section Details Existing Provision Proposed Provision
194 A Overloading of passengers Rs 1000 per extra passenger
194 B Seat belt Rs 100 Rs 1000
194 C Overloading of two wheelers Rs 100 Rs 2000, Disqualification for 3 months
for licence
194 D Helmets Rs 100 Rs 1000 Disqualification for 3 months
for licence
194 E Not providing way for emergency
vehicles
New Rs 10,000
196 Driving Without Insurance RS 1000 Rs 2000
199 Offences by Juveniles New Guardian / owner shall be deemed to
be guilty. Rs 25,000 with 3 yrs
imprisonment. For Juvenile to be tried
under JJ Act. Registration of Motor
Vehicle to be cancelled
206 Power of Officers to impound documents Suspension of driving licenses u/s 183,
184, 185, 189, 190, 194C, 194D,194E
210 B Offences committed by enforcing
authorities
Twice the penalty under the relevant
section

35. Thank You
abhatt@wri.org