MoRTH Proposes Waiving off Registration And Renewing Charges For Electric Vehicles

In a bid to encourage e-mobility in India, the Ministry of Road Transport and Highways (MoRTH) today proposed to exempt battery-operated vehicles from payment of fees for issuing and renewing registration certificates. The new draft notification states that any electric vehicle (EV) buyer will be exempted from paying a registration fee for a new EV or a fee for renewal of registration as well. Now to give you an idea, the registration fee for a vehicle ranges from Rs. 300 to Rs 1500 only. So the more substantial thing would be a subsidy in road tax which varies in different states.

MoRT&H has issued a draft notification proposing to exempt Battery Operated Vehicles from payment of fees for the purpose of issue or renewal of Registration Certificate and assignment of new registration mark. This has been notified to encourage e-mobility. pic.twitter.com/rStGcgjYHQ

— MORTHINDIA (@MORTHIndia) June 1, 2021

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The registration fee for a vehicle ranges from Rs. 300 to Rs 1500 only.

MoRTH took to twitter sharing this information. The tweet read, "MoRTH has issued a draft notification proposing to exempt Battery Operated Vehicles from payment of fees for the purpose of issue or renewal of Registration Certificate and assignment of new registration mark. This has been notified to encourage e-mobility."

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The proposal will cover all segments.

Speaking on the announcement, Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV) said, "We welcome the move by the ministry. In the recent past, many States have already waived of the registration charges, while a few are still left. We need such measures to create an effective ecosystem for EVs."

Vinkesh Gulati, President- Federation of Automobile Dealers Associations (FADA) said, "MoRTH under the able leadership of Gadkari ji has always been very progressive and FADA wholeheartedly welcomes this move. Electric Mobility is one category where both the Central as well as State Governments have incentivized the use of electric vehicles through subsidies, allowance, tax rebates, etc. The recent initiative by MoRTH proposing a draft notification on exempting battery-operated vehicles from payment of fees for issuing and renewing registration certificates is a step in the right direction. This will encourage the use of EVs and also reaffirm confidence among the buyers as there will be a substantial decrease in purchase price. The move clearly demonstrates the intention of the Indian government to transform the Indian mobility space and create a clean and greener future." 

Earlier, MoRTH had also proposed a concession of 25 per cent on road tax for personal vehicles and 15 per cent for transport vehicles against a scrapping certificate. The new scrappage policy is expected to come into effect from October 1 this year. According to the new proposal, if the vehicle is registered against submission of "Certificate of vehicle scrapping", the concession in the motor vehicle tax will be up to 25 percent, for non-transport vehicles and up to 15 percent for transport vehicles. A similar concession for EVs too could help in expediting EV adoption in our market.