Understanding Government Policies on Vehicle Scrapping in India

India’s roads are filled with vehicles of all ages, but did you know that old, unfit vehicles are one of the major contributors to air pollution? To tackle this issue, the Indian government introduced the Vehicle Scrappage Policy to phase out old vehicles and promote cleaner, greener roads. If you’re wondering how this policy affects you, what the rules are, and how to scrap your car legally, this guide has got you covered!

Vehicle Scrapping in India

1. Introduction to Vehicle Scrapping Policy in India

Vehicle scrapping is the process of dismantling old and unfit vehicles in an environmentally safe manner. The Government of India launched the National Vehicle Scrappage Policy in August 2021, aiming to remove End-of-Life Vehicles (ELVs) from the roads. The goal? Reduce pollution, boost the automobile industry, and promote safer, fuel-efficient vehicles.

According to government reports, India has over 1 crore (10 million) vehicles older than 15 years, emitting high levels of pollution. Phasing them out will not only improve air quality but also contribute to the circular economy by recycling valuable materials.

2. What is the Vehicle Scrappage Policy in India?

The Car Scrap Policy India outlines rules for phasing out unfit vehicles based on their age and fitness. Here are the key points:

  • Private vehicles (non-commercial) older than 20 years need to undergo a fitness test. If they fail, they must be scrapped.
  • Commercial vehicles older than 15 years must pass a fitness test to stay on the road.
  • Vehicles that fail the fitness test or pollution test will be deregistered and marked for scrapping.
  • Vehicle owners can get scrappage incentives, including tax benefits and discounts on new car purchases.

The policy aims to reduce India’s carbon footprint while promoting a sustainable Registered Vehicle Scrapping Facility (RVSF) network across the country.

3. Who is Eligible for Vehicle Scrapping?

If you own a vehicle that fits the following criteria, it’s eligible for scrapping:

  • Private vehicles: Over 20 years old
  • Commercial vehicles: Over 15 years old
  • Any vehicle failing fitness or emission tests
  • Accident-damaged or flood-affected vehicles declared as total loss by insurers

Scrapping your old car at an authorized vehicle scrapping company in India ensures that it is dismantled in an eco-friendly way, preventing pollution and illegal reselling of old parts.

4. Mandatory vs. Voluntary Vehicle Scrapping

  • Mandatory Scrapping: If a vehicle fails the fitness test, it must be scrapped.
  • Voluntary Scrapping: Vehicle owners can voluntarily scrap their vehicles for benefits, even if they still run fine.

Vehicles that fail emission tests but continue running pose serious risks to public health. This is why the government is making fitness testing mandatory at Automated Testing Stations (ATS).

5. RTO Rules for Scrapping a Vehicle in India

Before you scrap your car, you must deregister it with the RTO. The steps are:

  1. Visit the RTO where your vehicle is registered
  2. Submit Registration Certificate (RC), insurance papers, and pollution certificate
  3. Get the No Objection Certificate (NOC) from the police to ensure the car isn’t stolen
  4. Handover the car to an authorized Registered Vehicle Scrapping Facility (RVSF)
  5. Receive a Scrappage Certificate, which can be used for tax benefits and discounts on a new vehicle

Without deregistration, your vehicle could still exist in the RTO database, leading to legal issues.

6. Government Incentives for Vehicle Scrapping

To encourage car owners to scrap old vehicles, the government is offering several incentives:

  • Discount of up to 5% on the purchase of a new vehicle
  • Road tax rebate of up to 25% for private vehicles and 15% for commercial vehicles
  • Scrappage certificate benefits, which help in getting discounts from vehicle manufacturers
  • Waiver on registration fees for new vehicles purchased using a scrappage certificate

These incentives make upgrading to a new car more affordable, benefiting both the economy and the environment.

7. Where to Scrap Your Vehicle Legally in India?

To prevent illegal scrapping, the government has set up Registered Vehicle Scrapping Facilities (RVSFs). Some of the authorized vehicle scrapping companies in Indiainclude:

  • Maruti Suzuki Toyotsu Vehicle Scrapping (Noida, Delhi NCR)
  • Cero Recycling (Mahindra MSTC Recycling Pvt. Ltd.) (Mumbai, Pune, Chennai)
  • Tata Motors Registered Vehicle Scrapping Facility (Gujarat)
  • Abhishek K & Co. (Kolkata)

Before scrapping your car, ensure the facility is government-approved to avoid any legal issues.

8. How Vehicle Scrappage Policy Affects Car Owners?

  • Older vehicles will require fitness tests, making ownership more expensive
  • Used car prices for old vehicles will drop, as buyers prefer vehicles eligible for incentives
  • Road tax and penalties will increase for vehicles older than 15-20 years
  • Scrapping incentives make it cheaper to buy a new car, leading to better fuel efficiency and safety

9. Environmental Impact of Vehicle Scrapping in India

Scrapping old vehicles helps:

  • Reduce air pollution: Older cars emit 10-12 times more pollution than newer models
  • Promote recycling: 85-90% of a car’s materials (steel, aluminum, rubber) can be reused
  • Lower carbon emissions: The policy aims to cut down pollution by 25% from vehicular sources

With India struggling with severe air pollution, removing old vehicles is a crucial step towards cleaner air.

10. Future of Vehicle Scrapping in India

The scrap car industry in India is expected to grow due to:

  • Increasing government regulations on pollution control
  • More Registered Vehicle Scrapping Facilities (RVSFs) being set up nationwide
  • Growth in automobile recycling and sustainable practices

By 2025, India is expected to process 50 lakh (5 million) ELVs annually, creating jobs and reducing environmental damage.

11. FAQs on Vehicle Scrappage Policy in India

1. How much can I earn by scrapping my car?

The scrap value depends on the metal weight and market rates. Generally, you can get ₹15,000 – ₹50,000 for a scrap car.

2. Can I scrap my vehicle without an RC (Registration Certificate)?

No, you need an RC to legally scrap a vehicle. If lost, apply for a duplicate from the RTO before scrapping.

3. What should I do if my scrapped vehicle is still active in RTO records?

Ensure you receive a Certificate of Destruction (COD) from the scrapping facility and submit it to the RTO for deregistration.

Conclusion

The Car Scrap Policy India is a game-changer for reducing pollution and modernizing the automobile sector. If you own an old vehicle, it’s time to check if it qualifies for scrapping and take advantage of the government’s incentives. Choose an authorized vehicle scrapping company in India and contribute to a cleaner, greener future!

🚗♻️ Time to say goodbye to your old car and hello to a new beginning!

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