Why Green Certificates Matter in Vehicle Scrapping

Have you been holding on to your old car thinking, “Maybe I’ll get it fixed someday”? If that car is over 15 years old and gathering dust, now is the time to think about scrapping it. And if you’re scrapping it, one thing you should definitely know about is the Green Certificate. Not only is it an official proof of scrapping, but it also comes with a bunch of perks you can’t ignore.

Let’s understand how and why this certificate matters — especially for car owners in India.

1. Understanding the Green Certificate

A Green Certificate is a document issued when you scrap your vehicle through a Registered Vehicle Scrapping Facility (RVSF). It confirms that your car has been legally scrapped as per government rules.

But more than just proof, it acts as a discount voucher, offering benefits when you purchase a new vehicle. It's valid for both private and commercial vehicles.

2. Vehicle Scrappage Policy in India (2021 Onwards)

In 2021, the Indian government launched the Vehicle Scrappage Policy to reduce pollution and promote clean mobility. As per this policy:

• Private vehicles older than 15 years and commercial ones over 10 years must undergo fitness tests.
  
  
• Failing the test? You should scrap it at an RVSF and get a Green Certificate.
  
  
• The goal is to remove over 1 crore unfit vehicles from Indian roads.
  
  

3. Key Benefits of Green Certificate

Let’s be honest — no one wants to give away their old vehicle for nothing. This is where the Green Certificate shines:

• 5% Discount on new vehicle purchase (available at select manufacturers).
  
  
• Up to 25% rebate on road tax (varies by state).
  
  
• Waiver on registration fees for the new vehicle.
  
  
• Avoid legal issues – you won’t be liable for fines or taxes after the scrap.
  
  
• Boost to resale – your certificate can be a deal-breaker at showrooms.
  
  

4. How to Obtain a Green Certificate in India

Here’s a simple step-by-step:

1. Find a Registered Vehicle Scrapping Facility (RVSF) nearby. For example, if you're in Gujarat, you can check with car scrap dealers in Ahmedabad who are certified.
   
   
2. Submit your RC book, Aadhaar, PAN card, and insurance (if available).
   
   
3. Your vehicle is scrapped in an environmentally friendly manner.
   
   
4. You receive the Green Certificate – digitally or in print.
   
   

The entire process takes around 7 to 10 working days.

5. Green Certificate vs Scrap Value – What’s the Difference?

People often confuse both. Let’s clear that up:

• Scrap Value = Money you get for the metal, parts, tyres, etc.
  
  
• Green Certificate = Proof of scrapping + future benefits
  
  

Yes, you can claim both. But only if you scrap at a registered facility. Roadside dealers might give you cash but no Green Certificate – and that’s a risky deal.

6. Where to Use the Green Certificate

Once you get the certificate:

• Present it at vehicle dealerships for discounts
  
  
• Use it to claim road tax rebates
  
  
• Submit it during insurance/loan closure
  
  
• It's also helpful for updating VAHAN records (vehicle de-registration)
  
  

7. Which Vehicles Are Eligible for Green Certificate?

The policy is pretty clear:

• Private Cars – Over 15 years old
  
  
• Commercial Vehicles – Over 10 years old
  
  
• Pollution non-compliant vehicles (BS-III or older in major cities)
  
  
• Failed fitness test vehicles
  
  

8. How Green Certificates Encourage Eco-Friendly Disposal

We’ve all seen those rusted cars dumped in illegal scrapyards. But when you go through an RVSF:

• Your vehicle is dismantled and parts are recycled or safely disposed
  
  
• Fluids like oil and battery acid are not dumped into the environment
  
  
• It contributes to lower carbon emissions and clean air in cities
  
  

According to the MoRTH, scrapping one old vehicle reduces carbon dioxide emissions by up to 28% compared to keeping it on the road.

9. Green Certificate and Electric Vehicles (EVs)

Thinking of switching to an EV?

Good news! Several states offer extra incentives on EVs if you present a Green Certificate.

For example:

• Delhi: ₹5,000–₹7,500 additional discount
  
  
• Gujarat: ₹10,000 subsidy on EV two-wheelers and cars
  
  

10. Common Myths Around Green Certificates

Let’s bust a few:

❌ “It’s too much paperwork” – Not true. Most RVSFs help you handle the documents.
❌ “Only very old vehicles get it” – Nope. Even 10-year-old commercial vehicles qualify.
❌ “It doesn’t add value” – You could save ₹30,000 to ₹60,000 depending on the vehicle.

11. State-Wise Incentives on Green Certificate

Here’s a quick comparison:

State	Road Tax Rebate	Registration Fee Waiver
Gujarat	Up to 25%	Yes
Maharashtra	15%–20%	Yes
Delhi	25% for EVs	Yes
Tamil Nadu	15%	No

Always check the latest notifications from your local RTO.

12. Green Certificate Fraud or Cautionary Points

⚠ Be aware of shady scrap dealers offering cash but no certification.

• Always scrap at a Registered Vehicle Scrapping Facility.
  
  
• Verify the RVSF on the VAHAN portal.
  
  
• Do not hand over your RC without official acknowledgment.
  
  

In Ahmedabad, for example, several certified car scrap dealers are listed online — choose wisely.

13. Future of Green Certificates in India

The Green Certificate is expected to be integrated with:

• VAHAN 4.0 digital database
  
  
• Pollution control tracking
  
  
• EV subsidy schemes
  
  

It could soon be mandatory to have one if you want to avoid traffic challans or renew registration.

Conclusion

Absolutely! If you want to:

✅ Scrap your old car legally
✅ Get cash + new vehicle discounts
✅ Help the environment
✅ Avoid future legal or financial problems

Then getting a Green Certificate is the smart move. Find a registered car scrap dealer in Ahmedabad or your local city and begin the process.