PANAJI
The Union Ministry of Road Transport and Highways (MoRTH) has proposed a significant relaxation in the Rent-A-Cab Scheme, reducing the minimum fleet requirement for operators from 50 vehicles to just five -- a move that could open up new avenues for smaller operators to enter Goa’s vehicle rental business and compete with established players.
The proposed Rent-A-Cab Scheme, 2026, seeks to replace the existing 1989 framework and is expected to make it easier for smaller entrepreneurs to enter the vehicle rental business. However, its implications for Goa remain significant, as the State Transport Authority (STA) had stopped issuing fresh rent-a-cab licences and permits from February 24, 2025, citing road safety, traffic congestion and regulatory compliance concerns.
The Ministry’s draft notification, dated November 6, proposes that an operator maintain at least five motor cabs in total, with a minimum of two vehicles stationed at every approved place of operation. Under the existing scheme, an applicant is required to maintain at least 50 motor cabs.
However, as per the draft, the licenses issued under the 1989 scheme will continue to remain valid for their existing validity period and may be renewed under the new scheme.
The scale of Goa’s existing rent-a-cab sector is reflected in figures placed before the State Assembly. The government has issued 10 rent-a-cab licences under which 6,762 permits have been granted. The State had defended its decision to halt fresh licences by citing the growing number of rental vehicles, accidents involving tourists, parking shortages and pressure on road infrastructure.
The draft also proposes a uniform application fee of Rs 25,000, irrespective of the number of vehicles or places of operation, and a five-year licence. Applicants will have to own the vehicles in their name, with each cab required to have valid fitness and pollution certificates, comprehensive insurance and no overdue challans. Vehicles must not have completed nine years from their first registration.
The proposed framework also makes operators responsible for round-the-clock customer care, resolving website grievances within 24 hours, investigating complaints against drivers within seven days and providing repair and towing assistance.
Cabs will have to be equipped with vehicle location tracking devices, first-aid kits and provisions for child restraint systems. Drivers supplied by operators will require police verification.
The Ministry has invited comments and suggestions from stakeholders by December 5. The draft proposes to bring the new scheme into force from January 1, 2027, subject to finalisation.
