Certain powers of State Government exercisable by the Central Government

If a corporation or company is owned or controlled by the Central Government, or jointly by the Central Government and one or more State Governments, then for any inter-State route or area the powers that would normally belong to a State Government must be exercised only by the Central Government. In short, the Centre, not the State, handles regulation of such centrally owned companies for inter-State operations.

Priya runs a bus company partly owned by the Central Government and a State Government, and it operates an inter-State route between two states. For permits, regulation and fares on that inter-State route, the Central Government — not the State Government — will exercise the powers that would otherwise belong to the State.