The government has given notice of withdrawal of the Motor Vehicles Amendment Bill, which was passed in the Lok Sabha last year but failed to get through in the Rajya Sabha.
Instead, the cabinet is reported to have approved a bill proposing fresh amendments to the existing Motor Vehicles Act, to replace an ordinance brought out last year for enabling plying of e-rickshaws in the National Capital.
The government had, in December 2014, promulgated an ordinance to legalise e-rickshaws, which were banned in National Capital Region by the Delhi High Court.
"A new bill to replace the ordinance has to be introduced in Parliament in the current session. This is to legalise e-rickshaws. That's why the government has given a notice to withdraw the amendment bill," reports quoting official sources said.
E-rickshaws, or battery-operated three-wheeler vehicles, had gone off roads after Delhi High Court banned them in July last year on safety concerns. The cabinet had, on 24 December last year, approved the promulgation of an ordinance as a bill in this regard could not get through in the upper house of Parliament to pave the way for plying of e-rickshaws.
The government had, in October 2014, notified rules for plying of e-rickshaws and making drivers licence mandatory for operating them and limiting the maximum speed to 25 kmph.
The government had also notified the Central Motor Vehicles (16th Amendment) Rules, 2014, which provide that e-rickshaws will be allowed to carry four passengers and 40 kg luggage while e-carts would transport goods up to 310 kg.
The proposes Act will be in line with practices in six advanced nations - the US, Canada, Singapore, Japan, Germany and the United Kingdom.
The new law is intended to provide a corruption free and transparent system with a proper record of driving licences. Data would be utilised in e-governance.