The Road Transport Corporations Act, 1950
3. Establishment of Road Transport Corporations in the States.
The State Government, having regard to
- the advantages offered to the public, trade and industry by the development of road transport;
- the desirability of coordinating any form of road transport with any other form of transport;
- 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.