Govt proposes to reduce minimum fleet requirement to start car rental biz to 5

New Delhi, Nov 12 (PTI) The Ministry of Road Transport and Highways (MoRTH) has proposed reducing the minimum fleet requirement to enter the self-drive and chauffeur-driven car rental business to five vehicles from the existing 50.

     The move is expected to make it easier for more players to enter the space.

     The ministry in a draft 'The Rent-a Cab Scheme 2026', said the applicant must have at least two motor cabs stationed at each place of operation and maintenance not less than five motor cabs in total.

     The proposed scheme, which would be the first comprehensive replacement of the 1989 framework, will be implemented from January next year.

     According to the ministry, under the proposed scheme, vehicles must have obtained a comprehensive policy of insurance, which includes coverage of the renter, driver or any other occupant of the motor cab up to the passenger capacity of the motor cab.

     Vehicles should not have any pending challan related to any offence or contravention under the Act.

     As per the draft, the vehicles should not be listed in the police criminal data base of the National Crime Records Bureau.

(This story has not been edited by THE WEEK and is auto-generated from PTI)