Pre-election, govt proposes whopping reduction in auto-taxi permit fee

The proposal is to bring down the fee to ₹1,500 from the existing ₹10,000 to ₹25,000 for autos and taxis in Mumbai and other parts of Maharashtra

MUMBAI: With the Lok Sabha elections round the corner, the state government has proposed to drastically reduce the permit fees for auto rickshaws and taxis, paving the way for even more vehicles on the city’s and state’s roads. The proposal is to bring down the fee to ₹1,500 from the existing ₹10,000 to ₹25,000 for autos and taxis in Mumbai and other parts of Maharashtra.

Pre-election, govt proposes whopping reduction in auto-taxi permit fee

The demand-supply equation in the case of autos is already skewed. According to the auto unions, there are already too many three-wheelers on Mumbai’s roads, and reducing permit charges will only make life more difficult for the existing permit-holders and drivers. There are 2.60 lakh autos plying in Mumbai, with almost 40 percent of them running on shared auto routes connecting different railway stations.

“The proposal is expected to be passed soon by chief minister Eknath Shinde, who also heads the transport department,” said a transport department official. It will help permit holders to reduce their annual fees by at least half. Annual duties and taxes like vehicle tax, renewal fee and environment charges are linked to the permit fee and are almost ₹15,000 to ₹20,000 a year. The reduction in the permit fee will in turn reduce the annual charges.”

The official said that the proposal was expected to help unemployed youth get into the sector. “It will be projected as one of the major people-friendly decisions taken by the government in the Lok Sabha and assembly polls,” said a senior BJP leader.

In September 2017, the Maharashtra government lifted the ban on new autos and taxis, opening up the sector for all to prevent black marketing of permits by permit holders or owners. This increased the total number of autos from 1.30 lakh in 2017 to 2.60 lakh now but has also curtailed the selling of permits in black at higher rates. Permit-holders have not been finding enough drivers since 2017, as permits are easily available.

The auto union leaders have welcomed the move to reduce the permit price to ₹1,500. However, they feel that the reduction will not only flood the roads with more autos but also severely affect the livelihood of current permit holders and drivers. “There is a need to freeze permits for autos and taxis. Once these get cheaper, it will only lead to more people applying,” said Shashank S Rao, auto rickshaw union leader.

Thampy Kurien of the Mumbai Rickshawmen’s Union, said the move was welcome. “However, at present, the wait period to ferry passengers has gone up for drivers,” he said. “Although the number of rickshaws has increased, the daily average of passengers is around 30 to 35 lakh. If the permit costs reduce, then more autos will be added, which could affect the business of existing permit holders.”

The unions claim that ever since the metro began, travel patterns in the western suburbs have changed, with many autos connecting the railway station with local residential societies and commercial complexes through shared autos. The Mumbai Metropolitan Region Transport Authority has already approved shared autos to connect 28 metro stations on Lines 1, 2A and 7.

Transport activist A V Shenoy said that the benefit given to taxi and auto owners should be passed on to passengers. “There is no meaning to such decisions unless passengers benefit,” he said. “Auto and taxi unions keep demanding fare hikes; indeed, one such demand is still pending with the government. While taking a decision to reduce the permit fee, the government should ensure that the fare is not hiked for at least a few years more.” Shenoy, however, felt that the announcement could just be a poll gimmick.

A L Quadros of the Mumbai Taximen’s Union said that though the permit fee cut was a welcome step, it had come very late. “We have been demanding it for a long time, as for many it is beyond their reach and the business has no more remained profitable. It may help those looking for auto permits but certainly not for taxi drivers,” he said.

Transport commissioner V L Bhimanwar said that the proposal had to be ratified by the state government. “It is a demand by the unions, which contend that the permit fee is disproportionately high as against the national permit fee for inter-state drivers which is ₹1,000.” Bhimanwar, however, felt that the number of taxis and auto rickshaws was unlikely to go up just because of the reduction in the permit fee.

When asked about the state government decision, M Ram Kumar, additional commissioner of police (traffic), said that they were not aware about the move, “Once we are made aware about it, we will be able to comment,” he said.

(with input by Megha Sood)