Government’s big gift to owners of commercial EV, CNG and hydrogen vehicles, age limit may increase by 5 years under National Permit

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The Central Government has taken a historic and far-reaching policy step to promote environment-friendly and pollution-free green mobility in the country. The Ministry of Road Transport and Highways (MoRTH) has revised the prescribed operational age limit for battery-powered electric vehicles (EVs), hydrogen fuel-based vehicles and commercial vehicles running on natural gas (CNG) operating under the National Permit System. 5 year additional increase Has made an official proposal. The ministry has released the draft amendments to the Central Motor Vehicles Rules (CMVR), 1989. This revolutionary decision of the government will provide huge economic relief to lakhs of transporters, truck-bus fleet operators and logistics companies across the country, as it will reduce the operating cost (TCO) of clean fuel vehicles and their initial huge investment will be recouped in the long run.

Increase from 12 to 17 and 15 to 20 years: Know what is the age limit formula in the new draft?

of Central Motor Vehicle Rules Rule 88 The main change proposed in this is the maximum operating age of heavy and medium commercial vehicles covered under the national permit system. Under the existing rules, the age limit for obtaining National Permit for commercial vehicles running on conventional diesel and petrol is fixed at 12 years and 15 years, depending on the categories.

According to the new draft released by the ministry, this limit is being extended to 5 years for vehicles running only on green and clean fuels:

  • Vehicles with 12 year limit: In categories where the maximum operating age of vehicles was 12 years, it has now been increased for environment friendly fuels (EV, Hydrogen, CNG). 17 years It is proposed to do.

  • Vehicles with 15 year limit: Multi-axle or specific commercial vehicles, for which the time limit of 15 years is currently applicable, will now be 20 years A provision has been made to allow running on national permit.

The Ministry has clarified that this additional benefit of 5 years will be available only to pollution-free and alternative fuel based vehicles, while the same strict time limit and vehicle scrappage rules will remain applicable to old vehicles running on conventional fossil fuels (diesel/petrol).

The hassle of renewal every year is over: 5 years national permit will be available in one go, digital system will be connected to VAHAN

To strengthen the ‘Ease of Doing Business’ in the transport sector, the government has also proposed a major reform in the system of issuing national permits. At present, vehicle owners had to undergo annual renewal of the National Permit every year, which resulted in heavy paperwork, visits to offices and wastage of time.

  • 5 year lump sum permit: Now transporters and vehicle owners can directly register at one time as per their convenience. National Permit Authorization for a period of up to 5 years Will be able to choose the option to achieve.

  • Fee Structure: Annual National Permit Fee Undone ₹16,500 per year Will remain the same. If an applicant chooses a lump sum permit for 5 years, he will have to pay a total of Rs. ₹82,500 Payment will have to be made through electronic means.

  • Eliminate Paperwork, Digital Integration: The entire process of permit application (Form 46) and authorization (Form 47) will be made 100 percent digital. central ‘Vehicle’ (VAHAN) As soon as the vehicle registration number is entered through the database, the data of registration, fitness certificate, insurance, PUC and tax will be automatically fetched, which will prevent fraud.

Major changes in temporary registration and chassis rules: What will be the benefit to transporters?

The Ministry has also made practical changes in the rules for Temporary Registration keeping in mind the body manufacturing and delivery process of new heavy vehicles:

  • 6 months validity for unbodied chassis: If a transporter purchases only the chassis (chassis without body) and sends it to the workshop for body manufacturing, then from the date of issue of his temporary registration Valid for 6 months Will remain. If there is a delay in construction due to any unforeseen circumstances, its validity will be verified by applying to the concerned RTO and charging fees. 30-30 days ahead Will be able to increase.

  • Vehicles that are customized and registered in other states: Validity of temporary registration of completely manufactured vehicles which require special customization or which are to be permanently registered in another state. 45 days is being done.

  • Aadhaar-linked mobile number mandatory in Form-20: For the safety of vehicle owners and dealers, it will be made mandatory to enter Aadhaar linked mobile number and account number of hypothecation (loan/finance) agreement in the registration form.

Strategy to accelerate green mobility and electric trucks

According to reports from Niti Aayog and industry experts, the adoption of electric and alternative fuels in the heavy commercial vehicles sector has still been quite slow. The upfront cost of electric trucks and buses is two to three times higher than that of conventional diesel vehicles.

In such a limited age of 12 or 15 years, it was challenging for the operators to repay the loan and earn profit. Increasing the age limit by 5 years from 17 to 20 years will provide better returns on investment (ROI) to fleet owners and make it safer for banks to provide long-term soft loans to these green vehicles.

Suggestions sought in 30 days: Final gazette notification will be issued soon

The Ministry of Road Transport and Highways has placed this draft of CMVR amendments in the public domain for consultation with all stakeholders, transport unions, automobile manufacturers (SIAM) and general citizens. Suggestions & Objections within 30 days Have been invited. After reviewing the suggestions received, the Ministry will publish the final rules in the official Gazette of India, after which this historic arrangement will be effectively implemented across the country.

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