The Government of India has announced a hike in renewal fees for vehicles older than 20 years, reinforcing its commitment to phase out polluting and unsafe vehicles from Indian roads. The move is part of the Vehicle Scrappage Policy, aimed at reducing carbon emissions and encouraging the use of modern, fuel-efficient vehicles.
Higher Fees for Old Vehicles
Under the new rules, the fitness certificate renewal charges for private vehicles older than 20 years will increase significantly:
- Private cars: Renewal fee raised from ₹600 to ₹5,000.
- Motorcycles: Renewal fee increased from ₹300 to ₹1,000.
- Imported vehicles: Renewal fee could go up to ₹40,000.
For commercial vehicles older than 15 years, the fitness renewal fee will also rise sharply. This aims to discourage the use of outdated heavy-duty vehicles, which are considered major contributors to urban air pollution.
Why the Hike?
The government’s policy has two main goals:
- Encourage Scrappage of Old Vehicles – Rising renewal costs make it less attractive to keep polluting vehicles on the road.
- Boost the Automobile Industry – Phasing out older vehicles will drive demand for new, cleaner models, strengthening India’s auto sector.
Impact on Vehicle Owners
Owners of cars and bikes older than 20 years will now face tough decisions—either pay the higher renewal fees or consider scrapping their vehicles under government-approved recycling centers, which also provide incentives for purchasing new vehicles.
The scrappage initiative also offers:
- Road tax rebates up to 25%
- Scrap value of old vehicles (~4–6% of ex-showroom price)
- Possible discounts on new car purchases
Industry & Environmental Impact
- Automobile Sector: Car manufacturers are expected to benefit from rising demand as owners replace older vehicles.
- Environment: The policy is expected to reduce vehicular emissions, improving urban air quality.
- Road Safety: Phasing out old cars will also lower the risk of accidents caused by unsafe, aging vehicles.
