India Slashes Bus Certification Costs and Time

India has announced a major overhaul in bus body certification rules, reducing costs and speeding up approvals to strengthen road safety and improve manufacturing efficiency. The announcement was made by Road Transport Minister Nitin Gadkari at the Busworld India 2026 Conclave in New Delhi.

Certification process becomes faster and cheaper

The government has reduced certification charges for bus body builders from ₹30–40 lakh to about ₹14 lakh per certification. At the same time, the approval timeline has been cut from nearly four months to six weeks.

The move is aimed at bringing more unorganised bus body builders into the formal testing system introduced under the revised bus body code, which became mandatory from September 1, 2025. Under the new rule, every bus must undergo physical and video inspection before registration.

Focus on road safety and compliance

Authorities highlighted growing safety concerns in the sector, noting 125 deaths and 200 injuries in bus accidents in the last six months. Officials stressed that there will be no compromise on safety standards.

The new system ensures all compliance data is uploaded to the Vahan portal before approval.

Boost for manufacturing capacity

India currently has only two buses per 1,000 people, compared to eight globally. With demand rising, annual production of 70,000 units is not enough. The country also aims to produce 1.5 lakh electric buses in the next three years, requiring faster and more efficient certification processes.