The amendment bill, passed by the Lok Sabha in the previous session, could not pass through the Rajya Sabha.
The government in December 2014 promulgated an ordinance to legalise e-rickshaws which were banned in National Capital Region by the Delhi High Court.
"A new bill to replace the ordinance has to be introduced in Parliament in the current session. This is to legalise e-rickshaws. That's why the government has given a notice to withdraw the amendment bill," a source said.
E-rickshaws, or battery-operated three-wheeler vehicles, had gone off roads after Delhi High Court banned their plying in July last year on safety concerns.
The government in October 2014 had notified the rules for plying of e-rickshaws and making driver's licence mandatory for operating them and limiting the maximum speed to 25 kmph.
The government had notified the Central Motor Vehicles (16th Amendment) Rules, 2014.
The new rules provide that e-rickshaws will be allowed to carry four passengers and 40 kg luggage while e-carts would transport goods up to 310 kg.
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