The proposal will see the re-registration cost jump to about Rs. 15,000 for cars older than 15 years
In a bid to discourage plying of old vehicles on public roads, the Ministry of Road Transport and Highways (MoRTH) has submitted a proposal to the government to increase the cost of renewal of registration of passenger vehicles older than 20 years and commercial vehicles older than 15 years, by 25 times. The annual fitness test fee for CVs could go up by 125 times than the current prices, if the proposal is accepted. The proposal though is in its initial stage and the ministry has circulated the policy paper to different departments for feedback.
According to the proposal, the fitness test cost of a commercial vehicle will cost about ₹ 25,000, as opposed to just ₹ 200 per year. Meanwhile, a fitness test for a cab or mini truck would be in the vicinity of ₹ 15,000-25,000, depending on the vehicle. With respect to the passenger vehicles, owners will have to renew the registration after 15 years, which will see a hike in the charges to ₹ 15,000 from the current ₹ 600. The cost of getting a fitness certificate will remain the same though.
The proposal also plans to increase the cost of the renewal fee of two and three-wheelers to around ₹ 2000-3000, from the current fee of ₹ 300. The renewed registrations will stay valid for five years, after which the vehicle will have to be re-registered every five years.
The 2021 Union Budget was announced on February 1 and one of the major announcements to be made by the Finance Minister was about the vehicle scrappage policy. While the policy itself is yet to be rolled out, FM Nirmala Sitharaman said that passenger vehicles older than 20 years and commercial vehicles older than 15 years will be eligible for voluntary scrapping. The aim then is to discourage the use of old vehicles, in favour of new and more environment-friendly ones. The scrappage policy proposal also aims to incentivise voluntary scrapping of old vehicles, which will help reduce the cost of owning a new vehicle by way of discounts or reducing the registration fee.