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MOTOR VEHICLES ACTS - ADMINISTRATION

Policy Note 2006 - 2007

Demand No. 25

1. Importance of Road Transport

Road Transport, which enables the rapid movement of persons and goods, plays a vital role in the economic and social development of our Country.  Of the three  modes  of  the transport on air, water and land, road transport has, over  a  period  of   years,   attained  a   position   of    prime    importance.  

During 1990-91, the percentage of road transport and railways in carrying goods on all India basis was 38% and 62% respectively.  By  2004, the percentage of goods carried through road transport had increased to 61%, thereby underscoring it’s importance and dominance over other modes of transport. 

The rapid industrialisation and urbanisation of our State has thrown up new problems and challenges in development, in which road transport occupies a position of crucial importance.  The Transport department is well sensitised and equipped to deal with these emerging challenges.  It’s primary function is to try to meet the growing needs and requirements of the agriculture and industrial sectors, as well as those of the common man by appropriate discharge of statutory and non statutory powers vested with it.  The measures undertaken and proposed to be implemented in the near future may be summarised as follows:- 

2. Organisational and Administrative set up of   Transport Department:-

(i)The Transport Department functions under the administrative control of the Home Department.  The Transport Commissioner is the Administrative Head of the Department and also  functions  as the State Transport  Authority and Commissioner for Road Safety. One Joint Transport Commissioner in the cadre of I.A.S., is functioning under the control of Transport Commissioner, to  monitor the activities  concerning  Road Safety. There are other 4 Joint Transport Commissioners,. 9 Deputy Transport Commissioners and 57 Regional Transport Officers posts in this Department. There are 299 Motor Vehicle Inspectors posts  for checking  vehicles and to  issue  fitness certificates.

(ii) The field operations and other functions of Transport Department are looked after by one Joint Transport Commissioner’s Office, 6 Deputy Transport Commissioner’s Offices , 46 Regional Transport Offices, 40 Unit Offices and 19 Check  Posts in Tamil Nadu.

(iii) The Joint Transport Commissioner,  Chennai Zone acts as  the Regional  Transport   Authority  in  respect  of Chennai city.  There  are  7 Regional Transport Offices and 2 Unit Offices come under the territorial jurisdiction  of Chennai Region.

(iv) In 29 Districts except Chennai, there are 39 Regional Transport Offices and 38 Unit offices  functioning.  In the Districts the respective District Collectors are the Regional Transport Authorities. They dispose applications for permits under the provisions of the Motor Vehicles Act. Appeals and Revision petitions against the orders of the Regional Transport Authorities and State Transport Authorities are heard and disposed by the State Transport Appellate Tribunal, Chennai.

3. Growth of Vehicle Population

The present strength of vehicles in TamilNadu  is about 82.22 lakhs.    Tamil Nadu ranks second in India ,next to Maharashtra in  vehicle population.  In respect of two wheelers, Tamil Nadu tops the list. The growth rate of vehicle population is nearly 10% per annum.

The Motor vehicles are classified as Transport and Non Transport.  The number of vehicles are  increasing day by day  in our State.  The graphs showing the growth of vehicle population from the Financial years 2000-2001  to 2005-2006, the growth of Transport and Non Transport vehicles and the  growth of vehicles in Tamil Nadu are shown below:-

Vehicular Population  from  the year 2000-01 to 2005-06

GROWTH OF TRANSPORT VEHICLES

GROWTH OF NON-TRANSPORT VEHICLES

GROWTH OF TOTAL VEHICLES

1. 4.     Functions  of  Transport Department 

The Transport Department is administering the provisions of Motor Vehicles Act 1988, Central Motor Vehicles  Rules 1989, Tamil Nadu Motor Vehicles Rules, 1989, and Tamil Nadu Motor Vehicles Taxation Act and Rules, 1974 and all allied matters thereto.   The important functions are as follows:-

1. i. Registration of  motor vehicles, grant of permits to transport vehicles, making arrangements for  operation of passenger transport service/Cargo movements among the neighbouring States by entering into agreements with them;
2. ii.  Ensuring fitness of Transport vehicles and  issue / renewal of certificates therefor, issue of driving  licences including International  Driving licences,  conductor licences,  inspection of vehicles involved in accidents;
3. iii. Collection of tax and fees, controlling vehicular pollution, promotion of road safety measures, facilitating setting up of Emergency Accident Relief Centres and monitoring their functioning.

5.  Revenue

Every year the Transport Department  is earning  an additional revenue at an average growth rate  of 14%. The total revenue earned by this Department during the financial year 2005-2006 is Rs.1130.14 crores. Revenue  increased by Rs.112 crores over the previous   year’s        2004-2005 revenue.  For the current financial year 2006-2007, the Government have fixed the target of Rs.1253 crores for this Department.

The enforcement wing of this Department strives hard to increase the revenue by imposing compounding fee and other penalties in respect of vehicles where there is a default in payment of tax apart from levying penalties in respect of vehicles plying without permit, driving the vehicles without licence, overload of goods  and in other cases. Further, the online data available in the Regional Transport Offices generates  the list of tax evaders from whom the dues are collected and by this method the revenue leakage has been significantly  arrested. The enforcement wing of this department and the personnel at  the check posts  keep vigil over  vehicles  and  monitor the permits and other conditions for strict compliance.

The total revenue earned by the Department in the past five  years through taxes and fees are indicated  below:-

Growth of Revenue in Transport Department

6. Taxation

Motor Vehicles tax is levied as per the provisions of Tamil Nadu Motor Vehicles Taxation Act, 1974 and the Tamil Nadu Motor Vehicles Taxation Rules 1974. The following table  illustrates the principle under which each class of vehicle is taxed. The principle that the Government adopted in levy of tax is simple and effective:-

The Motor Vehicles Taxation structure in Tamil Nadu is as follows:-

( ** ) (Per seat Per Quarter)