(3)(a)The State Government shall, if so directed by the Central Government, having regard to the number of vehicles, road conditions and other relevant matters, by notification in the Official Gazette, direct a State Transport Authority and a Regional Transport Authority to limit the number of contract carriages generally or of any specified type as may be fixed and specified in the notification, operating on city routes in towns with a population of not less than five lakhs.(b)Where the number of contract carriages are fixed under clause (a), the Regional Transport Authority shall, in considering an application for the grant of permit in respect of any such contract carriage, have regard to the following matters, namely:(i)financial stability of the applicant;(ii)satisfactory performance as a contract carriage operator including payment of tax if the applicant is or has been an operator of contract carriages; and(iii)such other matters as may be prescribed by the State Government:Provided that, other conditions being equal, preference shall be given to applications for permits from(i)the India Tourism Development Corporation;(ii)State Tourism Development Corporations;(iii)State Tourism Departments;(iv)State transport undertakings;(v)co-operative societies registered or deemed to have been registered under any enactment for the time being in force;(vi)ex-servicemen.[(vii) self-help groups.]
