Urbanisation and economic development have led to a higher rate of increase of private vehicles compared to the road supply, resulting in traffic congestion, air-pollution and increased parking demand. India is also experiencing an uneven distribution of private vehicles with a preponderance in Delhi. The paper analyses the basics of number plate based road space rationing, its need and case studies from around the world, explains the methodology of the study, describes various practical problems encountered on the basis of a questionnaire survey conducted for the study and examines the policy objectives. The paper also throws light on the various strategies to overcome congestion, air-pollution and compares Policy Phase I and II. The paper concludes by giving real-time solutions that can be applied in the case of Delhi.