(3)The appropriate Government may, by order, exempt from the operation of sub-section (1) any vehicle owned by any of the following authorities. namely:-(a)the Central Government or a State Government, if the vehicle is used for Government purposes connected with any commercial enterprise;(b)any local authority;(c)any State transport undertaking within the meaning of section 68A Provided that no such order shall be made in relation to any sue authority unless a fund has been established and is maintained by that authority in accordance with the rules made in that behalf under this Act for meeting any liability arising out of the use of any vehicle of that authority which that authority or any person in its employment may incur to third parties.[Explanation. - For the purposes of this sub-section, appropriate Government means the Central Government or the State Government, as the case may be, and-(i)in relation to any corporation or company owned by the Central Government or any State Government, means the Central Government or that State Government;(ii)in relation to any corporation or company owned by the Central Government and one or more State Governments, means the Central Government;(iii)in relation to any other State Transport Undertaking or any local authority, means that Government which has control over that Undertaking or authority.]]
