Parliamentary Panel Proposes 'One Nation, One Bus Permit' and Elimination of Border Checks

A parliamentary panel has submitted a report proposing significant reforms to India’s bus transport sector. The recommendations include introducing a single All India Passenger Permit, abolishing border check posts, establishing common access to terminals, and creating a National Bus Digital Grid.

Presented to Parliament on August 11 by the Sanjay Kumar Jha-led Parliamentary Standing Committee on Transport, Tourism and Culture, the report follows consultations with Road Transport Ministry officials, the Bus and Car Operators Confederation of India (BOCCI), FlixBus, GreenCell Mobility, and other inter-city operators.

The committee examined a market of 4.4 lakh officially counted buses, three out of four of which are privately owned. Industry representatives informed the panel about various challenges, including ambiguous tourist-permit regimes leading to heavy challans, uncertainty over insurance claims following accidents, and private buses being denied access to state-controlled terminals. Furthermore, industry data indicated that 92% of buses lack supporting infrastructure.

To address regulatory friction, the panel recommended replacing the All India Tourist Permit with a single All India Passenger Permit within one year. It also called for phasing out border check posts still operating in six states—specifically citing Kerala, Tamil Nadu, Nagaland, Arunachal Pradesh, Rajasthan, and Punjab—and moving enforcement mechanisms to VAHAN, FASTag, and vehicle-location data.

Infrastructure access emerged as a major area of concern. The committee noted that in many states, state transport undertakings both operate buses and control terminals, allowing them to restrict access for competing private operators. Describing terminals as the sector's "point of strangulation," the panel proposed an Airports Authority-style National Bus Terminals Authority to grant public and private operators common access.

Highlighting the commercial viability of open access, the panel pointed to Delhi’s Kashmere Gate Interstate Bus Terminal, where private buses pay roughly ₹500 per entry through FASTag, with one operator contributing about ₹5 lakh a day. Submissions noted that smaller terminals opened to private operators became cash-flow positive within months.

The committee also proposed a dedicated budgetary identity for bus infrastructure. While the Road Transport Ministry administers an annual budget of around ₹3 lakh crore, the panel observed a lack of substantial provisions specifically for bus infrastructure distinct from carriageway construction, following proposals to direct roughly 25% of road allocations toward public transport.

Additionally, to resolve fragmented digital systems, the panel recommended a National Bus Digital Grid to combine public and private bus tracking, real-time seat availability, booking, passenger ratings, and geo-tagged complaints, integrating data from VAHAN, FASTag, and vehicle tracking devices into a single network.

"The proposed reforms for the bus transport sector highlight critical structural gaps in infrastructure and regulatory alignment across states. Integrating digital grids, streamlining permits, and opening terminal access to private operators can significantly improve capital efficiency and operational transparency. For businesses operating in mobility and logistics, transitioning toward a unified national framework will reduce compliance friction, optimize supply chains, and unlock commercial opportunities in a market largely driven by private enterprise." — Dr. Shishir Gupta, Founder & CEO, StartupLanes