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Key Change: Lowering the Age Threshold

The most significant policy shift is the reduction in the age threshold that triggers progressively higher fitness fees. Previously, flat, escalated charges were only applied to vehicles older than 15 years. Under the new rules, higher fees are now imposed on vehicles that have completed 10 years of service.

The government has introduced a tiered structure based on vehicle age, which applies across all major categories:

1. 10-15 years
2. 15-20 years
3. Over 20 years

Fees increase with each successive age bracket, replacing the former single flat rate for older vehicles.

Major Fee Revisions by Vehicle Category

The progressive age-based slabs now apply universally to two-wheelers, three-wheelers, quadricycles, Light Motor Vehicles (LMV), and all medium and heavy goods/passenger vehicles.

The largest fee hikes are concentrated on older commercial vehicles:

Increased Fees for Newer Vehicles (Under 15 Years)

Even vehicles under the 15-year mark will face increased costs for certification, as detailed under the updated Rule 81:

• Motorcycles: ₹400 (New)
• Light Motor Vehicles: ₹600 (New)
• Medium and Heavy Commercial Vehicles: ₹1,000 (New)

Industry experts suggest this aggressive fee structure is a direct measure to discourage the retention of older vehicles, thereby bolstering the government’s vehicle scrappage policy and promoting the adoption of newer, greener, and safer models.

Also read: The Professional Exit: 10 Essential Steps to Take Before You Resign

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Reconsidered the existing rules

The Department of Expenditure under the Ministry of Finance said in the Office Memorandum that this step is being taken keeping in mind the reduction of pollution levels, passenger safety and fuel efficiency. The memorandum said that considering the broad objectives of the government’s reform, the existing rules regarding vehicles that are 15 years old or not worth ‘servicing’ were reconsidered in consultation with NITI Aayog and the Ministry of Road Transport.

15 year old vehicles will be converted into scrap, said the official memorandum. After this it was decided that the vehicles of the ministries/departments which are 15 years old or not fit for ‘servicing’ will be converted into scrap. It said that such vehicles will be disposed of at the registered vehicle scrap center only. Vehicles that are 15 years old will not be auctioned. The Department of Expenditure said that detailed information about the process of converting such vehicles into scrap will be given separately by the Ministry of Road Transport.

Information was also given through social media.

Earlier, in the draft prepared by the Ministry of Road Transport and Highways, it was decided that government departments would not be able to renew the registration of 15-year-old vehicles from April 1, 2022. This includes vehicles of Central, State Government, Union Territories, PSUs and Municipal Board etc. This information was also given by the Ministry of Road Transport and Highways through social media posts.

Earlier, in the budget of the financial year 2021-22, it was announced by the government to bring voluntary vehicle scrapping policy. Under this policy, it will be necessary to conduct an automated fitness test after 20 years for personal vehicles and after 15 years for commercial vehicles. Heavy fine will be imposed on the vehicle owner for driving vehicles that do not pass this test. Apart from this, there is also a provision to seize such vehicles.

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