The scheme of nationalization of passenger transport services was started as early as in 1932 by the then Nizam government in Hyderabad.The Marathwada State Transport, with headquarters at Aurangabad, came into existence. Passenger transport services were regulated by the District level police authorities, prior to the coming in to force of the Motor Vehicles Act, 1939, by issue of permits. With the passing of the Motor Vehicles Act, 1939, passenger transport was sought to be controlled and regulated by various provisions of the Act. Under The Road Transport Corporation Act 1950, the power to legislate in respect of trade and commerce is given to the Provincial Legislature and the power to legislate for the incorporation of trading corporations is given to the Central legislature.Road transport has emerged as the dominant segment in India’s transportation sector with a share of 5.4 percent in India’s GDP. Public transport bus operation is differentiated from other bus operation by the fact the owner or driver of a bus is employed by or contracted to an organisation whose main public duty or commercial interest is to provide a public transport service for passengers to turn up and use, rather than fulfilling private contracts between the bus operator and user.The oldest Indian state transport undertaking is North Bengal State Transport Corporation founded by the Raj Durbar of Koch Bihar Kingdom regime on 1 April 1945 with three buses and three trucks. It is still vibrant and running, providing service to commuters of North Bengal region