The Centre has decided to increase the certificate of registration (RC) renewal fee for vehicles come 1st October 2021.
A draft notification regarding the same has been issued by the Ministry of Road Transport and Highways in a bid to aid the roll-out of the vehicle scrapping policy.
Thus, from October this year, RC renewal fee for bikes older than 15 years would be Rs. 1000/- and for cars, the government would charge owners Rs. 5000/-.
Below is the revised fee structure for new certificate of registration and renewal of certificate of registration for private vehicles –
| Vehicle Type | Registration Fee | Renewal Fee |
|---|---|---|
| Motorcycle | Rs. 300/- | Rs. 1000/- |
| Three-wheeler/Quadricycle | Rs. 600/- | Rs. 2500/- |
| Light Motor Vehicle | Rs. 600/- | Rs. 5000/- |
| Imported 2-/3-wheeler | Rs. 2500/- | Rs. 10,000/- |
| Imported vehicle | Rs. 5000/- | Rs. 40,000/- |
Also, the draft notification says in case of delay in applying for renewal of RC, a penalty fee of Rs. 300/- would be levied every month for motorcycles and Rs. 500/- per month for 4-wheelers.
Further, the government had also revised rates for conducting tests and to grand the certificate of fitness (FC) for motor vehicles older than 15 years. For example, from 1st October 2021, an owner of a 15-year-old a bus or truck would have to shell out Rs. 12,500/- to obtain renewal of FC.
Revised fee for grant and renewal of certificate of fitness for motor vehicles older than 15 years –
| Vehicle Type | FC Test | FC Renewal |
|---|---|---|
| Motorcycle | Rs. 500/- | Rs. 1000/- |
| Three-wheeler & Quadricycle | Rs. 1000/- | Rs. 3500/- |
| Light Motor Vehicle | – | Rs. 7500/- |
| Medium goods/Passenger vehicle | Rs. 1300/- | Rs. 10,000/- |
| Heavy goods/Passenger vehicle | Rs. 1500/- | Rs. 12,500/- |
A penalty amount of Rs. 50/- will be levied for each day of delay after expiry of certificate of fitness.
If this proposed hike of registration renewal and fitness certificate fee is put in place, it is likely to discourage people from keeping old vehicles.
The Road Transport Ministry has also come up with a draft for setting up registered vehicle scrapping centres. These centres should verify the actual ownership of vehicles before scrapping them.
Moreover, the proposal states a vehicle owner, upon scrapping his or her vehicle will receive a scrapping certificate which can then be transferred to get an incentive while buying a new vehicle.
All manufacturers have been issued an advisory by the Centre to offer a 5 percent discount while selling a new vehicle against a scrapping certificate. In addition, the government might also not levy RC fee for a new vehicle purchased by providing a scrapping certificate.
Do note that these are draft rules and the Central government will take into consideration any objections and suggestions from any person sent within a period of 30 days from the date on which the copies were made available to the public, which is 15th March 2021.
Earlier, on 12th March 2021, the Road Transport ministry, issued a notification about draft rules for non-renewal of certificate of registration of government vehicles older than 15 years. This will rule come into force on 1st April 2022.
It proposes old vehicles owned by the Central government and its departments, State or UT governments and their departments, local government institutions (Municipal Corporation, Municipalities and Panchayats), State Transport Undertakings, Public Sector Undertakings and autonomous bodies with the Central and State governments will not be offered a renewed certificate of registration.
