Before diving in, here’s a quick snapshot: India’s Vehicle Scrappage Policy 2025 mandates fitness tests for cars over 20 years old and commercial vehicles over 15 years, offering owners tax rebates, registration waivers, and manufacturer discounts when they scrap unfit vehicles. Over 70 Registered Vehicle Scrapping Facilities (RVSFs) are live nationwide, making the process streamlined. Beyond individual savings, the policy cuts air pollution, supplies recycled steel to industry, and creates new jobs in recycling and manufacturing.
What Is the Vehicle Scrappage Policy?
India’s Vehicle Scrappage Policy is a government‑backed program to phase out unfit, polluting vehicles and replace them with modern, efficient models. Launched in 2021, its core aim is to reduce vehicular emissions, boost road safety, and foster a circular economy for auto‑parts.
Vehicle Scrappage Policy – Key Highlights
Age & Fitness Criteria
- Commercial vehicles: Must pass a mandatory fitness test after 15 years from registration.
- Private vehicles: Subject to fitness tests after 20 years.
- Government vehicles: Scrapped automatically after 15 years, exempt from fitness tests unless used by defense or security agencies.
Incentives & Rebates
- Non‑transport vehicles: Up to 25% rebate on road tax and registration fees.
- Transport vehicles: Up to 15% rebate on taxes and fees.
- State boosts: Maharashtra offers an extra 15% tax concession on new vehicles when old ones are scrapped.
Step‑by‑Step Scrapping Process
- Locate an RVSF: Over 70 facilities operate across 18 states/UTs; find yours at the Parivahan portal.
- Vehicle Inspection: The center checks identity, outstanding dues, and fitness compliance.
- Handover & Dismantling: Owner agrees on scrap value, then the vehicle is dismantled; materials sorted for recycling and hazardous waste safely disposed.
- Certificate of Deposit (CD): Issued by RVSF; use it at the RTO to deregister the vehicle and claim incentives. CDs can be traded if you don’t buy a new vehicle immediately.
- De‑registration at RTO: Submit the CD and complete deregistration to legally remove the vehicle from records.
Vehicle Scrappage Policy – Who Benefits?
Vehicle Owners
- Cost savings: Tax rebates and fee waivers lower the price of a new replacement.
- Lower maintenance: New cars need fewer repairs than aging vehicles.
- Enhanced safety: Modern models include up‑to‑date safety features.
Environment
- Clean air: Removing high‑emission vehicles cuts pollutants like CO and PM.
- Quiet streets: Newer engines run more quietly, reducing noise pollution.
- Material recycling: Steel, aluminium, rubber, and plastic are recovered for reuse, easing demand on raw‑material mining.
Economy
- Industrial boost: Recycled metals feed steel and auto‑component sectors, while RVSFs spur growth in recycling industries.
- Job creation: From fitness‑test stations to dismantling yards, the policy generates employment across the value chain.
State‑Level Incentives & Variations
- Maharashtra: 15% extra tax concession on new vehicles if you scrap the old one.
- Haryana: Incentive policy for Registered Vehicle Scrapping and Recycling Facilities to set up more RVSFs.
- Meghalaya: Recently approved the state policy, aiming to scrap 13,000 vehicles in phase‑1 to curb pollution.
Challenges in Implementation
- Awareness gap: Many owners still unaware of their eligibility or benefits.
- Limited RVSFs in some regions: Rural areas lack nearby scrapping facilities, raising logistic costs.
- Compliance monitoring: Ensuring only authorized centres operate and eliminating illegal dismantlers remains a hurdle.
Tips for Vehicle Owners
- Check age: Note your vehicle’s registration date; plan testing or scrapping at least six months before the deadline.
- Compare RVSFs: Use the Parivahan portal to find certified centres with transparent pricing.
- Leverage CDs: If you don’t need a new vehicle right away, sell your CD on the RVSF marketplace to another buyer.
- State schemes: Research additional state‑level rebates—these stack on central incentives.
Future forecast on Vehicle Scrappage Policy
Analysts forecast a surge in new vehicle demand as CDs drive replacements, pushing industry growth by 8–10% in the next two years. Meanwhile, recycled steel output could rise by 20 Mt annually, helping India meet its National Steel Policy targets.
Conclusion
India’s Vehicle Scrappage Policy 2025 blends environmental stewardship with economic stimulus. By mandating fitness tests for older vehicles, offering compelling rebates, and streamlining scrapping via RVSFs, the policy makes it easy and rewarding to upgrade to cleaner, safer rides. Whether you’re a private owner or fleet operator, now is the time to check your vehicle’s age, explore incentives, and join the drive toward a greener tomorrow.
All information is collected from Govt of India’s official website. For more details related to the policy please refer to Government official website National Single Window System.
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