Highway Body For Changes In Motor Vehicles Act

The National Highways Authority of India (NHAI) has sought amendments to Section 138 of the Motor Vehicles Act, 1988, to reduce operating risks on highways.

Under this section, all rule-making powers are vested with state governments. This allows states to decide loads that can be carried by commercial vehicles. The power of the Union government is restricted to certain technical parameters which include signaling systems on highways.

NHAI has sought the amendment along with the draft concession pact that has been forwarded to the Union cabinet.

Sources said this amendment was being sought to reinforce the state support agreement in the concession pact. This state support agreement is essentially a tripartite agreement between the states, the Centre and project operators.

Under this agreement, the states are not expected to create any new parallel facilities either free of cost or at lower rates. In addition, the states are also expected to provide certain other support in the form imposition of axle restrictions.

Bidders and consultants who reviewed the draft concession document have suggested that such changes will have to be incorporated into the Act where the Centre could take over some of the rule making powers on national highways. The sources said this would be necessary to remove some of the operating risks involved in the projects.

Sources said these powers should be passed to NHAI so that it is in a position to set axle load specifications for the National Highways and enforce it themselves. Currently, the enforcement of commercial vehicle loads is done by the state transport authorities. The authorities, in turn, levy penalties or compounding fees amounting to Rs 1,000 per tonne of excess load. These penalties comprise a substantial portion of the state revenue. Consequently, the sources said, the states are not prepared to part with this revenue.