Shared IPT and the Regulatory Structure of Stage and Contract Carriages in South Indian States

D Dhanuraj, Nikhil Ali and Chaithra A Navada at February 6, 2026

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Shared Intermediate Public Transport (Shared IPT) systems such as share autos, e-rickshaws, and small motor cabs have emerged across India as a market-driven response to gaps in formal public transport, particularly in peri-urban and low-density areas. Despite performing stage-like functions, these services largely operate under contract carriage permits or outside the formal regulatory framework altogether. This regulatory mismatch has contributed to widespread informality and uneven enforcement across states.This research paper examines the distinction between stage carriage and contract carriage permits under the Motor Vehicles Act, 1988, and state motor vehicle rules, and how it shapes the operation and formalisation of Shared IPT services. Through a comparative analysis of permit conditions, fees, application procedures, and state-level rules in Kerala, Tamil Nadu, Karnataka, Andhra Pradesh/Telangana, and Puducherry, the study highlights how stringent stage carriage permit requirements and relatively flexible contract carriage regimes influence operator decisions. The paper also argues that recent amendments to the Motor Vehicles Act provide states with a viable legal pathway to design dedicated, low-burden permit frameworks for Shared IPT, enabling formalisation while retaining operational flexibility.

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Dr D Dhanuraj is the Founder-Chairman, Nikhil Ali is the Senior Research Associate (Urban), and Chaithra A Navada is a Research Associate (Urban), at Centre for Public Policy Research (CPPR).

Views expressed by the authors are personal and need not reflect or represent the views of the Centre for Public Policy Research.

D Dhanuraj

Chairman at Centre for Public Policy Research | + posts

Dr Dhanuraj is the Chairman of CPPR. His core areas of expertise are in international relations, urbanisation, urban transport & infrastructure, education, health, livelihood, law, and election analysis. He can be contacted by email at [email protected] or on Twitter @dhanuraj.

Nikhil Ali

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Nikhil Ali is an Associate, Research at the Centre for Public Policy Research. He completed his graduation in Civil Engineering from Sree Narayana College of Engineering and is a seasoned Civil Engineer with working experience at Tata Realty and Infrastructure Ltd. With a passion for urban planning, he acquired his master's degree in Urban Planning from Hindustan Institute of Technology and Science, Chennai. His expertise lies in Urban Mobility, land use planning/analysis, and water-sensitive planning.

Chaithra A Navada

Research Associate, Urban at CPPR | + posts

Chaithra A Navada is an Associate, Research (Urban) at the Centre for Public Policy Research. She holds a master’s degree in Urban and Regional Planning with a specialization in transportation from the University of California, Los Angeles, and an MA in Development Studies from the Indian Institute of Technology, Madras (IITM).

Her experience spans multimodal transport planning, road safety planning, traffic impact assessments, and policy research aimed at fostering sustainable and equitable urban mobility systems. As a transportation planner, she has contributed to road safety plans for cities and counties in California, Florida, and Texas. She supports projects in the urban and transportation verticals at CPPR, and currently works on a project to improve shared mobility in rural India.

D Dhanuraj, Nikhil Ali and Chaithra A Navada

D Dhanuraj, Nikhil Ali and Chaithra A Navada, D Dhanuraj, Nikhil Ali and Chaithra A Navada and D Dhanuraj, Nikhil Ali and Chaithra A Navada

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