Centre to soon issue advisory on app-based taxi services

However, the decision to ban or not to ban such services will continue to vest with states, not the Centre

Stating that the decision to ban app-based taxi hailing services like Ola and Uber rest with the state governments, the centre today said it will soon issue an advisory for regulating such services.

At present, state governments are empowered to prescribe conditions for the grant of license for public service vehicles, under Section 93 of the Motor Vehicles Act.

"We are working on that (advisory), it will be completed in the next three weeks which will be circulated to the states," a senior Road Ministry official said.

An advisory will be issued to the states on the mobile app-based taxi hailing services, the official added.

Asked if the centre is planning to ban such services, the official said, "The decision to ban or not to ban lies with the states."

In December, last year, the government had banned all unregistered web-based taxi companies after a driver of Uber was accused of rape.

The advisory may be issued as an interim measure till the new Road Transport and Safety Bill is finalised.

The proposed bill is likely to be brought before the Cabinet in the next 10 days after which it will be tabled in the Parliament.

The new bill will be in sync with practices in six advanced nations - the US, Canada, Singapore, Japan, Germany and the UK.