The Motor Vehicles Act, 1988

The Motor Vehicles Act, 1988 regulates almost all aspects of road transport vehicles. It has provisions for traffic regulations, vehicle insurance, registration of motor vehicles, controlling permits and penalties. The Act came into force from 1 July 1989. The amendments to the Motor Vehicle Act were passed by the Parliament in 2019.

  • Some of the important proposals in the Motor Vehicles (Amendment) Act, 2019 -
  • It makes Aadhaar mandatory for getting a driving licence and vehicle registration.
  • For deaths in hit-and-run cases, the government will provide a compensation of Rs 2 lakh or more to the victim’s family.
  • In traffic violations by juveniles, the guardians or owner of the vehicle would be held responsible, unless they prove the offence was committed without their knowledge or they tried to prevent it.
  • The minimum fine for drunk driving has been increased from Rs 2,000 to Rs 10,000.
  • The Act allows the central government to order for recall of motor vehicles if a defect in the vehicle may cause damage to the environment or other.
  • The Act provides for a National Road Safety Board, to be created by the central government through a notification.
  • The Bill provides for a scheme for cashless treatment of road accident victims during golden hour.

Conclusion

The government, through a series of initiatives, acts, rules, is working on policies on road and highways, to attract significant investor interest from the country itself and foreign investors.

As per Union Budget 2019-20, Pradhan Mantri Gram Sadak Yojana (PMGSY) has brought many socio-economic gains in the rural areas. Presently most of the parts of PMGSY roads have been built using Green Technology, Waste Plastic and Cold Mix Technology, thereby reducing carbon footprint.

The Ministry of Road Transport and Highways has fixed an overall target to award 15,000 km projects and construction of 10,000 km national highways in 2019-20. Also, most awaited formation of 200,000 kilometers of national highways is expected to be completed by 2022.

The private sector has emerged as a key player in the development of road infrastructure in India. Increased industrial activities, along with increasing number of two and four wheelers have supported the growth in the road transport infrastructure projects. The government’s policy to increase private sector participation has proved to be a boon for the infrastructure industry with many private players entering the business through the public-private partnership (PPP) model.