Definitions extracted from M V Act 1988 (http://www.tn.gov.in/sta/Mvact1988.pdf)
2(7) “contract carriage” means a motor vehicle which carries a passenger or passengers for hire or reward and is engaged under a contract, whether expressed or implied, for the use of such vehicle as a whole for the carriage of passengers mentioned therein and entered into by a person with a holder of a permit in relation to such vehicle or any person authorised by him in this behalf on a fixed or an agreed rate or sum –
(a) on a time basis, whether or not with reference to any route or distance; or
(b) from one point to another, and in either case, without stopping to pick up or set down passengers not included in the contract anywhere during the journey, and includes –
(i) a maxicab; and
(ii) a motorcab notwithstanding that separate fares are charged for its passengers;
2(22) “maxicab” means any motor vehicle constructed or adapted to carry more than six passengers, but not more than twelve passengers, excluding the driver, for hire or reward ;
2(29) “omnibus” means any motor vehicle constructed or adapted to carry more than six persons excluding the driver ;
2(40) “stage carriage” means a motor vehicle constructed or adapted to carry more than six passengers excluding the driver for hire or reward at separate fares paid by or for individual passengers, either for the whole journey or for stages of the journey.
The above I expect should help members to understand the intricacies of licensing.
Now, what Mr K Rajavarma Ballal, Chairman, All India Bus Operators Confederation & President, Karnataka Bus Operators Federation, was referring to during my talk with him (check this), perhaps pertained to the following:
CHAPTER – VI (Special Provisions Relating To State Transport Undertakings)
99. Preparation and publication of proposal regarding road transport service of a State transport undertaking. - 61[(1) Where any State Government is of opinion that for the purpose of providing an efficient, adequate, economical and properly co-ordinated road transport service, it is necessary in the public interest that road transport services in general or any particular class of such service in relation to any area or route or portion thereof should be run and operated by the State transport undertaking, whether to the exclusion, complete or partial, of other persons or otherwise, the State Government may formulate a proposal regarding a scheme giving particulars of the nature of the services proposed to be rendered, the area or route proposed to be covered and other relevant particulars respecting thereto and shall publish such proposal in the Official Gazette of the State formulating such proposal and in not less than one newspaper in the regional language circulating in the area or route proposed to be covered by such scheme and also in such other manner as the State Government formulating such proposal deem fit.
100 (sub-section-3). Provided that no such scheme which relates to any inter-State route shall be deemed to be an approved scheme unless it has the previous approval of the Central Government.
Namma government is apparently seeking to do away with the stipulation pertaining to the 'approval from the Central government'.