The state administration wants to significantly lower the permit costs for taxis and auto-rickshaws in advance of the upcoming Lok Sabha elections, which would allow for even more cabs and autos to be driven on state and local roadways.
Currently the permit fees for autos and cabs ranges from INR 10,000 to INR 25,000 in Mumbai and other regions of Maharashtra. If the proposal gets approval it will be reduced to INR 1,500.
In the case of cabs, the supply-demand relationship is already skewed. The auto unions contend that lowering permit fees will simply make things worse for the drivers and permit holders, who now have too many three-wheelers on Mumbai's roadways. Of the 2.60 lakh autos operating in Mumbai, about 40 per cent go on shared auto routes that link several railway stations.
An official from the transport department stated that this proposal will soon be passed by Chief Minister Eknath Shinde, who also heads the transport department.
It will assist permit holders in cutting their yearly costs in half or less. Annual fees and taxes include car/cab/taxi/auto tax, renewal costs, and environmental charges. The annual fees will decrease as a result of the permit fee reduction.
The official added that this proposal is expected to help get more youth into the sector of transportation.
A senior Bharatiya Janata Party (BJP) leader said that in the Lok Sabha and assembly elections, it will be portrayed as one of the government's most significant people-friendly choices.
In order to stop permit holders and owners from selling their permits illegally, the Maharashtra government removed the ban on new cars and taxis in September 2017. As a result, there are currently 2.60 lakh cars overall, up from 1.30 lakh in 2017. However, the sale of permits in the black market at higher prices has decreased. Since 2017, permit holders have had difficulty recruiting enough drivers because permits are widely accessible.
The move to reduce permit fees is welcomed by the auto union leaders. But they also said that the reduction will not only increase the number of vehicles on the road but also impact the livelihood of current permit holders and drivers.
Auto Rickshaw Union Leader, Shashank S. Rao, said that there is an urgent need to freeze permits for autos and taxis. If permits get cheaper, it will only lead to more people applying for them.
The unions assert that there has been a shift in the western suburbs' travel patterns since the opening of the metro. Share-auto mode is currently being used by numerous people to reach the train station from nearby residential communities and business facilities. Shared autos connecting 28 metro stations on Lines 1, 2A, and 7 have already received approval from the Mumbai Metropolitan Region Transport Authority.
According to Transport Commissioner V. L. Bhimanwar, the state government needed to approve the plan. He said that the unions are demanding it and arguing that the permit fee is excessively high compared to the INR 1,000 national permit fee for interstate drivers. However, Bhimanwar believed that the decrease in the permit fee alone was not likely to increase the number of taxis and auto-rickshaws.
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