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Last Update:
February 12, 2025
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Why keeping a vehicle beyond 20 years may now cost you a fortune

While the changes would impact vehicle owners nationwide, they would not affect owners in Delhi-NCR, where a court order mandates the scrapping of diesel vehicles older than 10 years and petrol vehicles older than 15 years.
In a move aimed at phasing out older, polluting vehicles, the Ministry of Road Transport has issued a draft notification proposing a steep increase in the renewal fees for vehicles older than 20 years.

The proposal is part of the government's broader effort to reduce the environmental impact of vehicles manufactured before the introduction of Bharat Stage-II (BS-II) emission norms, encouraging owners to scrap or upgrade their older vehicles.

Under the new draft rules, the ministry has proposed that the renewal fee for motorcycles older than 20 years would rise to Rs 2,000, while the registration renewal fee for cars would jump to INR 10,000.

What the draft rules say

The draft also focuses on medium and heavy commercial vehicles, particularly those over 15 years old, which are being phased out due to their higher emissions. For these commercial vehicles, the proposed renewal fees are INR 12,000 for medium vehicles and INR 18,000 for heavy vehicles. If these vehicles are over 20 years old, the fee doubles to INR 24,000 and INR 36,000, respectively.

While the changes would impact vehicle owners nationwide, they would not affect owners in Delhi-NCR, where a court order mandates the scrapping of diesel vehicles older than 10 years and petrol vehicles older than 15 years.

A transport ministry official said, “We have not touched the renewal fees for private vehicles after they complete 15 years. While we have proposed revised fees for 15-year-old commercial vehicles, we have sought to increase the renewal charge for the ones which were registered 20 years back.” This indicates that the proposal is focused mainly on those vehicles that continue to remain in circulation well beyond their expected lifespan.

In addition to the registration fees, the government has also proposed to double the fee for fitness tests of vehicles older than 20 years, including both private and commercial vehicles.

This means that owners of older vehicles will face increased costs when attempting to pass mandatory fitness tests to continue using their vehicles on public roads.

AIMTC opposes draft notification

The All India Motor Transport Congress (AIMTC) has strongly opposed the draft notification, criticising what it considers a "sudden and excessive hike" in fitness test fees. The AIMTC pointed out that the current fee for fitness tests ranges from Rs 500 to Rs 1,500 for most vehicles, with heavy transport vehicles paying a maximum of INR 3,000.

However, under the new proposal, commercial motorcycles would have to pay INR 1,000 for fitness tests if they are between 8 and 15 years old, and INR 2,000 if they are older than 15 years.

The fees for three-wheelers and heavy vehicles are set to rise significantly, with proposed fees ranging between INR 7,000 and INR 25,000. The AIMTC has requested that the government withdraw the draft notification, arguing that the proposed increases would place an undue financial burden on vehicle owners.

As of now, the draft rules remain open for public consultation and will be reviewed by the ministry before any final decisions are made.

If implemented, the new fees are expected to have a significant impact on vehicle owners, particularly those who have been holding on to older vehicles that no longer meet modern environmental standards.