The Road Transport Corporations Act, 1950

3. Establishment of Road Transport Corporations in the States.

The State Government, having regard to

1. the advantages offered to the public, trade and industry by the development of road transport;
2. the desirability of coordinating any form of road transport with any other form of transport;
3. the desirability of extending and improving the facilities for road transport in any area and of

providing an efficient and economical system of road transport service therein; may, by notification in the Official Gazette, establish a Road Transport Corporation for the whole or any part of the State under such name as may be specified in the notification.