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Re-registering 15-Year-Old Vehicles Could Cost Over 25 Times Under New MoRTH Proposal

The Ministry of Road Transport and Highways (MoRTH) has submitted a proposal to the gove
ment 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.

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 gove
ment 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.

New Vehicle Scrappage Policy New Vehicle Scrappage Policy

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 around ₹ 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 Union Budget 2021 was announced on February 1 and one of the major announcements to be made by the Finance Minister was about the new 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 favor of new and more environment-friendly ones. The scrappage policy proposal also aims to incentivize 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.

 Also Read: Mahindra XUV300 Petrol AMT launched with BlueSense Plus Connected technology; Prices start at Rs 9.55 lakh

Also Read: Driving an old vehicle? Know about ‘Green Tax’ and why you need to pay it

Also Read: Union Budget 2021: Highlights For The Automobile Industry
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