New act to streamline goods transport through roads

New Delhi, Apr 19 (UNI) Clearing the decks for modern road transportation in the country, the cabinet today approved introduction of a bill in Parliament for repealing the exisiting Carriers Act, 1865 and enacting a new Carriage by Road Bill, 2005.

Briefing reporters after the Cabinet meeting, an official spokesperson said the new legislation would pave the way for modern systems of road transportation and bring about transparency in the sector.

After the Bill is passed by Parliament, the Presidential assent would be obtained on the Bill. Thereafter, rules will be framed in accordance with the requirements under the Act.

The main purpose of the Carriers Act, 1865 was to define and limit the liability of transporters for loss of damage to consignments entrusted to them owing to their own negligence or fault.

Expressing happiness over the cabinet decision, Road Transport and Highways Minister T R Baalu said most of the provisions of the 1865 Act had become obsolete as the transport trade had undergone a sea change over the last 142 years.

''The proposed Carriage by Road Bill has been drafted keeping in mind the changes and needs of modern-day requirement of trade and transport by road,'' he added.

Mr Baalu said the proposed bill would make the registration mandatory for the common carrier, which would include people engaged in business of collecting, storing, forwarding or distributing goods to be carried by goods carriage by motorised transport on road. It will also include goods booking companies, contractors, agents and brokers.

The liability of the common carrier in case of loss or damage to the goods will be prescribed under the rules, to be framed with regrad to value, freight and nature of goods.

The minister said the under the new legislation, every consignor would have to execute a ''Goods Forwarding Note'' about the value of the consignment and also make a declaration about dangerous and hazardous goods. Further, it will be the duty of a transporter to ensure that such goods are covered by insurance.

More importantly, he said there would be a single registration for a common carrier which will be valid for the entire country.

''Electronic submission of application for registration will be encouraged and Registration Authorities will have to issue certficate of registration or renewal within a period of 90 days,'' the minister said.

Under the proposed bill, goods transport companies will be penalised for overloading in accordance with Section 194 of the Motor Vehicle Act, 1988 at par with the drivers/owners of motor vehicles.

Mr Baalu emphasised that the enactment of the bill would ''make the transport system transparent and modernise the systems and procedures of the transportation trade through registration of common carrier and equitable apportionment of liability between the common carrierand the consignor.'' UNI SKS RL HT1518