Dual Licensing Permits For Autorickshaws Will Increase Gross Income Of Drivers: C-DEP

In collaboration with Professor Anoop Chawla from the Indian Institute of Technology (IIT), Delhi, the Centre for Digital Economy Policy Research (C-DEP) has released a report on how one can amplify income of auto-rickshaw drivers through dual licensing policy.

In the report it was found that income levels of autorickshaw drivers can be boosted by minor modifications of existing regulations.

This report, titled as, Amplifying Income Potential of Three-Wheeler Auto-Rickshaw Drivers: Case for Dual Licensing Policy, points out that the three-wheeler autorickshaw drivers are in a perpetual state of economic hardship. 

This is because the three-wheeler drivers have significant number of idle hours with no revenue generation in the absence of alternative usage of their assets for meaningful revenue generation. The report found that the daily working hours of auto drivers is approximately 10-12 hours, and the mean distance travelled varies from 70 to 80 km. Thus, at an average speed of 25kmph, it amounts to a utilisation of only about 30-35 percent. The underutilisation of the autorickshaw as an asset is also a national economic loss.

Thus, keeping the above in mind, the report suggests the government should launch a pilot program for a limited experimentation period to observe the benefits of a Dual Licensing Policy and assess its overall impact on the eco-system. 

While the pilot is commissioned with appropriate approvals from the government authorities, it is also suggested that the government may consider the option of working towards the creation of a committee/working group with representatives from industry, academia, technical experts and representatives from the autorickshaw drivers, focusing on the income enhancement of auto rickshaw drivers through the adoption of dual licensing permits for three-wheeler autorickshaws. 

“Autorickshaws are the backbone of the Indian urban passenger carry segment. With more and more tech enabled aggregator platforms, the importance and demand of autorickshaws will only grow in the coming years. They hold tremendous potential to penetrate into the logistics ecosystem, which in itself is a major contributor to the Indian economy," said Professor Anoop Chawla, Indian Institute of Technology, Delhi.

The report further indicates the benefits of a dual licensing policy through substantial data points and key readings as mentioned below:

RK Mitra, Principal Advisor, Centre for Digital Economy Policy Research (C-DEP) said, "Dual usage/licensing of three-wheeler autorickshaws will pave the way for innovation, in-city logistics and ease of doing business."

> The report also indicated that from a comparison of regulatory requirements, the structural requirements for three-wheelers intended for passenger carrier (L5-M vehicles), and goods carrier (L5-N vehicles) have only one major distinction - the requirement for a separate load body or compartment for carrying goods. Consequently, any passenger three-wheeler can serve as goods carrier if the goods are transported duly following the proposed safety measures. 

> Further, after an analysis of the Motor Vehicles Act, 1988, the report showcased that the central government has the power to exempt specified categories of vehicles from the applicability of the law to promote innovation, research, and development in the fields of vehicular engineering, mechanically propelled vehicles, and transportation.

Commenting on the study, Ashish Rawat, CES, (Road, Ministry of Road Transport and Highways) said, ”As a policymaker, safety will be a primary concern while considering the dual licensing policy. Fleet management system will also be very crucial for effective implementation of the policy.”