India’s Vehicle Scrappage Policy: All You Need to Know

India’s Vehicle Scrappage Policy, launched in 2021, aims to reduce air pollution and improve road safety by phasing out old, unfit vehicles. The policy targets vehicles by age—15 years for commercial vehicles and 20 years for private ones—offering incentives for scrapping outdated vehicles and purchasing new ones. Alongside environmental benefits, the policy boosts the automotive sector by driving demand for modern, efficient vehicles. Let’s look at India’s Vehicle Scrappage Policy in detail and how it affects you:
 

Key Highlights of India’s Vehicle Scrappage Policy

What is the Vehicle Scrappage Policy in India?

The Vehicle Scrappage Policy has several key objectives:
 

• Reduce vehicular emissions, a primary source of air pollution, particularly in urban areas
   
• Improve overall fuel efficiency, thus reducing our dependence on imported fuel. It also encourages the adoption of greener alternatives
   
• Enhances road safety by removing unfit vehicles from operation, thus reducing accidents caused by mechanical failures and outdated/no safety systems
   
• Stimulates economic growth by boosting demand for new vehicles and creating opportunities in the recycling sector
   
• Encourage efficient resource management with materials like steel, plastic, and rubber from scrapped vehicles being repurposed for other industries

Specific guidelines under the policy vary based on vehicle categories:
 

Guidelines for Government Vehicles

Under India’s Vehicle Scrappage Policy, government vehicles are subject to strict rules to ensure timely phasing out of outdated and polluting vehicles. These guidelines aim to promote environmental sustainability and efficient resource management.

Scrapping After 15 Years:
 

• All government-owned vehicles, including those used by Public Sector Undertakings (PSUs), autonomous bodies, and municipal corporations, must be scrapped after completing 15 years of service.
   
• This rule applies irrespective of the vehicle’s condition or usage history.
   
• These vehicles will no longer be eligible for re-registration.

Exemption from Fitness Tests:
 

• Government vehicles are not mandated to undergo fitness tests, unlike private or commercial vehicles.

Exceptions for Defence and Security Vehicles:
 

• Vehicles used by defence and security agencies in critical roles may be exempted.
   
• Such exemptions are considered case-by-case to ensure that non-critical vehicles are repurposed.
   

Guidelines for Commercial Vehicles

The Vehicle Scrappage Policy ensures that commercial vehicles, which contribute significantly to air pollution, adhere to strict fitness and compliance norms. These guidelines aim to improve road safety, reduce emissions, and encourage the transition to newer, greener vehicles.

Mandatory Fitness Tests after 15 Years:
 

• Required after 15 years from the vehicle's registration date.
   
• Tests assess various parameters, including structural integrity, engine performance, emission levels, and safety compliance.
   
• Vehicles failing the test may be repaired and retested.
   
• Repeated failures lead to deregistration and mandatory scrapping.
   

Incentives for Voluntary Scrapping:
 

• Reduced road taxes, registration fee exemptions, and possible discounts from manufacturers for new vehicle purchases.

Penalties for Non-Compliance:
 

• Heavy fines, vehicle impounding, and mandatory scrapping deter policy violations.

Exceptions:
 

• Vehicles used for essential services (e.g., public transportation) may receive rare exemptions.
   

Guidelines for Private Vehicles

India’s Vehicle Scrappage Policy encourages private vehicle owners to replace outdated models with safer, greener alternatives. These guidelines ensure only roadworthy vehicles continue to operate, while providing incentives for scrapping unfit ones.

Mandatory Fitness Tests after 20 Years:
 

• Required after 20 years from the vehicle's registration date.
   
• Tests should be conducted at Automated Testing Stations (ATS) to evaluate structural integrity, emission levels, and safety compliance. 
   
• ATS ensures accuracy and transparency in test results.
   
• Owners can repair vehicles that fail the test but repeated failures or high repair costs make them ineligible for further tests.

Re-Registration for Fit Vehicles:
 

• Vehicles passing the test can be re-registered but must comply with stricter norms and pay higher registration fees and taxes. Currently, registration for private vehicles in Delhi NCR cannot be renewed after they expire.

Scrapping and Recycling:
 

• Declared unfit vehicles cannot be re-registered or operated on the road and must be scrapped at a Registered Vehicle Scrapping Facility (RVSF).

Incentives for Voluntary Scrapping:
 

• Benefits include discounts on road tax, exemption from registration fees, and potential savings from manufacturers or dealers on new vehicle purchases.

Exceptions for Vintage/Classic Cars:
 

• Vehicles with cultural or historical value are exempt and follow separate guidelines. These are as follows:
   

Guidelines for Vintage and Classic Vehicles

Recognising the cultural and historical significance of vintage and classic vehicles, India’s Vehicle Scrappage Policy provides special exemptions for their preservation. These guidelines ensure responsible ownership and promotion of heritage conservation.

Definition of Vintage and Classic Vehicles:
 

• Vintage Vehicles: Vehicles over 50 years from the date of manufacture that retain their original engine, body, and design.
   
• Classic Vehicles: Vehicles of significant historical importance, as recognised by authorities, regardless of age.
   

Exemption from Scrappage Policy:
 

• Vehicles with cultural, historical, and aesthetic value are exempt from mandatory scrapping.
   
• Vintage and classic vehicles do not require mandatory fitness tests or age-based registration renewals.

Special Registration and Restricted Usage:
 

• These vehicles must be registered under their respective categories and issued a unique registration number plate.
   
• Usage is limited to exhibitions, parades, and cultural or heritage events. Regular road use is not permitted.

Scrapping Allowed in Special Cases:
 

• Vehicles can only be scrapped if irreparably damaged or if preservation is deemed unfeasible.
   

Benefits of the Vehicle Scrappage Policy

The benefits of India’s vehicle scrappage policy are manifold; let’s take a close look at who it benefits and how:
 

For Vehicle Owners:

1. Monetary Benefits: Owners receive incentives such as discounts on new vehicles, tax rebates, and registration fee exemptions when they scrap old vehicles, reducing the cost of upgrading to a new car.

2. Reduced Maintenance Costs: Replacing old vehicles with newer models eliminates frequent repair costs, offering better reliability and long-term savings. 

3. Improved Safety: Modern vehicles offer improved, up-to-date safety features - for everyone on the road.
 

For the Environment

1. Lower Air Pollution: Phasing out old, high-emission vehicles reduces harmful pollutants like carbon monoxide and particulate matter, improving air quality.

2. Lower Noise Pollution: Newer vehicles with advanced technologies produce less noise than older models, contributing to quieter urban environments.

3. Sustainable Recycling of Automotive Materials: The policy promotes the recycling of materials like steel, aluminium, and plastic from scrapped vehicles, reducing the need for raw materials for many industries and minimising environmental degradation.
 

For the Economy

1. Stimulus for Various Industries: The policy supports sectors like steel, rubber, aluminium, and plastics by recycling scrapped vehicle parts. Industries manufacturing batteries, tyres, and electronic components also benefit from salvaged materials.

2. Creation of New Job Opportunities: Jobs are generated in sectors like automobile manufacturing, recycling, transportation, and logistics. Certified scrapping centres also create employment in dismantling, sorting, and recycling operations.
 

Process of Scrapping a Vehicle

Scrapping a vehicle under India’s Vehicle Scrappage Policy is a structured and eco-friendly process aimed at phasing out old, unfit vehicles. It involves deregistering the vehicle, safely dismantling it, and recycling its components at an RSVF. The process ensures that vehicle owners can responsibly dispose of their end-of-life vehicles while receiving incentives like tax rebates and discounts on new vehicle purchases. Once a vehicle is bound for scrappage, the following steps are required:

Steps in Scrapping a Vehicle Under India's Scrappage Policy

1. Locate a Registered Vehicle Scrapping Facility (RVSF)
   
   According to the Ministry of Road Transport’s RSVF website, over 70 operational facilities exist in 18 Indian states and Union Territories. The website can help you locate the nearest one.
    
2. Vehicle Inspection
   
   The scrapping centre inspects the vehicle to verify its identity and ensure compliance with scrapping regulations - this includes determining there are no pending dues or any criminal records against the vehicle.
    
3. Handover and Scrapping
   
   After agreeing on the car's scrap value, the owner takes the vehicle to the scrapping centre, where it is dismantled. Components like steel, plastic, and aluminium are separated for recycling, while hazardous materials are safely disposed of.
    
4. Certificate of Deposit
   
   The RSVF issues a Certificate of Deposit, which should be submitted at the RTO to de-register the vehicle from their records. The CD can also be used to avail discounts on purchasing a new vehicle and get rebates on registration charges and road tax. The CD can also be traded on the RSVF website if you do not plan on buying a new vehicle; others can use those benefits after paying you for the certificate.
    
5. De-register the car at the relevant RTO
   
   Apply to the Regional Transport Office (RTO) to deregister the vehicle. Provide necessary documents such as the vehicle's registration certificate, insurance copy, owner’s ID proof and the CD.
    

Challenges in Implementing India’s Vehicle Scrappage Policy

While promising, India’s Vehicle Scrappage Policy faces several challenges in its implementation.

1. Limited Scrapping Infrastructure:
   
   Registered Vehicle Scrapping Facilities (RVSFs) are still limited; as stated above, only over 70 RVSFs are currently operational in India, while they are unavailable in many states and union territories.
    
2. High Initial Costs:
   
   The financial burden of purchasing a new vehicle, even with incentives, may deter owners.
    
3. Inefficiencies in Enforcement:
   
   Ensuring strict adherence to fitness tests and deregistration processes requires robust mechanisms, which are currently underdeveloped.
    
4. Lack of Awareness:
   
   Many vehicle owners remain unaware of the policy, its benefits, and the scrapping process, leading to slow adoption.
    

Tips for Vehicle Owners

India’s Vehicle Scrappage Policy allows owners to retire old vehicles responsibly while availing many benefits, but proper preparation is key.
 

1. Check Eligibility:
   Verify your vehicle’s age and fitness status to determine if it qualifies for scrapping under the policy. For accurate details, use RTO records or the VAHAN portal.
    
2. Maintaining Records:
   
   Keep fitness certificates, pollution control documents, and other records updated. Proper documentation ensures a hassle-free deregistration and scrapping process.
    
3. Availing Incentives:
   
   Ensure all necessary documentation, including the Certificate of Deposit (CD) and proof of deregistration, is complete. These documents are essential to claim benefits like tax rebates and discounts on new vehicle purchases.
    

The Future of the Vehicle Scrappage Policy in India

India’s Vehicle Scrappage Policy is poised to transform the automotive and recycling sectors, fostering a sustainable future. By increasing awareness and expanding Registered Vehicle Scrapping Facilities (RVSFs), the policy aims to phase out old, polluting vehicles, reduce carbon emissions, and improve air quality.
 

The growth of RRVSFs and advancements in recycling technology will promote resource efficiency, enabling better recovery of materials like steel, aluminium, and plastics. The policy also supports India’s commitment to the United Nations’ Sustainable Development Goals (SDGs) by addressing pollution and resource conservation.  

Future iterations of the scrappage policy may include enhanced awareness campaigns, increased financial incentives, and stronger enforcement mechanisms to ensure wider adoption. This comprehensive approach promises India's cleaner, greener, and more sustainable transportation ecosystem.  
 

Conclusion

India's Vehicle Scrappage Policy is a forward-looking initiative addressing critical pollution, road safety, and resource efficiency issues while boosting the economy and supporting sustainable development. For individuals, it offers monetary incentives, reduced maintenance costs, and improved safety by encouraging replacing outdated vehicles with modern, efficient ones. The policy ensures lower air and noise pollution for the environment while promoting sustainable recycling of materials. Economically, it stimulates industries such as manufacturing and recycling, creates new job opportunities, and reduces dependency on imported fuels. By phasing out outdated vehicles and fostering sustainable practices, the policy paves the way for India's cleaner, safer, and more prosperous future.