Kerala govt orders review of white colour rule for tourist buses after operators flag revenue loss

The Transport Department under the Kerala government issued a new order on Tuesday directing transport authorities to re-evaluate the mandatory uniform colour scheme for tourist buses across the state.

Transport Department Secretary T.V. Anupama issued the official notification under Section 67(1)(d) of the Motor Vehicles Act 1988. Under the new directive, the government instructed the State Transport Authority (STA) to review its 11 August 2021 decision that imposed a single colour scheme on contract carriages under Rule 264 of the Kerala Motor Vehicle Rules 1989. Transport officials must now issue fresh orders taking into account the All India Tourist Vehicles (Permit) Rules, 2023, while strictly ensuring that 2019 High Court road safety directives are met.

Economic losses and tax drain

The policy review follows widespread complaints that enforcing a rigid uniform colour mandate solely within Kerala severely damaged the state’s tourism transport sector. Local bus operators suffered heavy financial losses because tourists increasingly preferred renting out-of-state vehicles operating under All India Tourist Permits (AITP), which faced no colour restrictions.

To bypass the strict rules, several local bus owners began registering their vehicles in neighbouring states. This shift significantly harmed state revenue by draining motor vehicle taxes, permit fees, and related collections. Previously, around 12,000 state-registered buses spent Rs 1–2 lakh each to repave their exteriors in white to comply with the mandate, only to lose out on student and excursion trips to brightly painted out-of-state buses. 

Safety norms remain paramount

Although the government is re-evaluating colour restrictions, the new order requires full compliance with safety directives established by the High Court. On 1 October 2019, the High Court banned distracting decorations, including large decals of film stars and extensive lettering on bus bodies and safety glass.

The government’s directive initiates formal follow-up procedures on decisions originally rooted in earlier rulings, attempting to strike a balance between economic survival for local bus operators and road safety standards across Kerala.