New Delhi: The Delhi government on Wednesday decided to introduce a policy under which app-based cab companies will have to charge fares set by the state transport department.

The details of the policy are still being worked out, transport minister Gopal Rai said.

“The policy will be exclusively for all the app-based taxis giving their services in the national capital. We will fix fares for them as we have done in the case of radio, economy cabs and kali-pili (black and yellow) taxis. All app-based taxi services will be regulated through this policy," Rai told Press Trust of India.

The move comes after the Aam Aadmi Party-led government on Monday banned the cab companies from surge pricing during the odd-even scheme.

“We are not against taxi aggregators. We fully support them. They provide important service to people. But they will have to follow law. Overcharging, diesel cars, drivers without license/badges and blackmailing by taxi aggregators won’t be allowed," Delhi chief minister Arvind Kejriwal said on Twitter on Wednesday.

Surge pricing allows cab companies to increase fares when the demand is high. Cab companies say this is done to ensure availability of cabs at all times.

On Wednesday, Delhi transport department impounded 50 cabs for overcharging and flouting the ban.

The odd-even scheme has been implemented for a second time from 15-30 April to tackle the growing pollution levels of the national capital. The scheme restricts the usage of cars on alternate days.

Delhi government is not the first one to crack down mobile-based taxi aggregators for surge pricing. This week, the Karnataka state government seized vehicles for charging more than the amount mandated by the state government.