Auto, bike, cab fares to be capped in Tamil Nadu under new transport guidelines

Jan 12, 2025

CHENNAI: The state transport department has proposed a comprehensive set of aggregator rules to regulate bike taxis, cabs and autos under the framework of the Motor Vehicle Aggregators Guidelines, 2020.

These guidelines, based on the Central Motor Vehicle Act, empower states to set fares, licensing protocols and driver eligibility requirements.

Tamil Nadu is expected to finalise these regulations soon, following extensive deliberations.


Key proposals include a base fare of 40 for autos, with 18 per km for additional distance, while bike taxis would have fares 10-12 lower.

Surge pricing would be capped at 1.5 times the base fare, with drivers receiving 80% of the fare collected. The guidelines also mandate stringent recruitment measures for drivers, addressing safety concerns stemming from lenient checks by some aggregators.

Proposed conditions include a minimum of two years of driving experience, thorough background checks and induction training programmes.

Aggregators would also need to pay a fixed fee of 5 lakh to operate in the state, valid for five years, with the option for annual renewals.

Sources said that the govt has been studying models from other states to tailor regulations that balance the interests of commuters, drivers and aggregator companies. The proposal, pending for more than 18 months, has gained urgency following recent clashes between auto and bike taxi drivers.

In response to delays, the confederation of 13 major auto drivers' unions in Chennai announced their own fares — 50 for the first km and 18 per km thereafter — effective Feb 1. "We are already following this at Kilambakkam, and more than 15,000 drivers in Chennai will adopt it across other parts," said Zakir Hussain of the All Auto Drivers' Confederation.

Auto drivers earlier demanded that the state govt develop its own app, similar to the one managed by Kerala govt, which uses GPS to calculate fares based on the distance travelled and includes a dynamic pricing system.

But the transport minister SS Sivasankar earlier told TOI that as the enforcement agency responsible for curbing excess fares by auto drivers, it would be a conflict of interest for the transport department to run an app to regulate auto fares. He also confirmed that the final decision on fares would be taken by the govt soon.