Road transport is a vital constituent in the economic development and social integration of the country. Road transport has come forth as the most dominant segment in the transportation sector of India. Due to easy accessibility and reliability, most number of passengers depends on road transport. During the past five decades, Road Transport Sector has grown significantly in India as it has always been placed in the thrust areas of the 5 Year Plans. The Steering Committee on Road Transport set up by the Planning Commission to make recommendations on policy matters for the 11th Five Year Plan critically reviewed the financial and the physical progress of the development of the entire road net work both in the Centre and State sectors during the 10th Five Year Plan and highlighted the problems and the remedial measures required to be taken in the context of the preparation of the 11th Five Year Plan. The Department of Road Transport and Highways under the Central Government formulates policies for Road Transport ‘with a view to increasing the mobility and efficiency of the road transport system in the country’. The enactment of Road Transport Corporation Act in 1950 provided for the incorporation and regulation of Road Transport Corporation in every state of India.