The Centre proposes to de-licence multimodal transport operators (MTOs) and bring them under a self-regulatory regime on the lines of chartered accountants and lawyers.

The move is part of an initiative by the country’s Maritime Administration to ease regulations, simplify procedures and bring more transparency in the working of the administration.

MTOs — transporters moving goods by more than one mode such as rail and road or rail and air — are licensed under the Multimodal Transport of Goods Act 1993.

There are currently over 1,200 licensed MTOs in India. Licences are required to be renewed every three years.

Deepak Shetty, Director General of Shipping, who is the authority for issuing the MTO licences, said the proposal to change the licensing system is under the Centre’s consideration. The proposed change, however, requires amendment to the Act.

On lines of ICAI

The self-regulatory organisation (SRO) which will be on the lines of the Institute of Chartered Accountants of India, will follow the procedures prescribed by the Centre in evaluating MTO applications for certification and registration.

The eligibility criteria for the SRO will be prescribed by the Union Government, he said.

Vivek Kele, a senior member of the Association of Multimodal Transport Operators of India, said it is a welcome move. De-licensing will help more transporters to operate as MTOs, which will help the logistics sector. The Association is understood to have agreed to function as an SRO.

The Centre has already eased the licensing procedures for MTOs as part of the e-governance initiatives taken by the maritime administration.

Transporters can now apply online and get the licence without visiting the directorate, Shetty told BusinessLine . He said the administration plans to make online all the services provided by it by March 16.

Related Topics
comment COMMENT NOW