Vehicle Scrappage Policy India: Rules, Process & Benefits

What is the Vehicle Scrappage Policy?

The National Vehicle Scrappage Policy, announced by the Government of India in 2021 and progressively implemented from 2022 onwards, aims to phase out old, unfit, and polluting vehicles from Indian roads. Under this policy, vehicles that fail fitness tests or exceed the prescribed age limit must be scrapped at authorized Vehicle Scrapping Facilities (VSFs).

The policy is administered by the Ministry of Road Transport and Highways (MoRTH) under the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021.

Age Limits for Vehicles

Important: The age is calculated from the date of initial registration, not the date of manufacture.

Who Needs to Scrap Their Vehicle?

• Owners of private vehicles older than 15 years that fail the automated fitness test
• Owners of commercial vehicles older than 20 years
• Government vehicle fleet managers (mandatory scrapping after 15 years)
• Any vehicle owner whose vehicle fails the fitness test, regardless of age
• Vehicles declared unfit by Automated Testing Stations (ATS)

Documents Required

• Vehicle Registration Certificate (RC) — Original
• Owner's identity proof — Aadhaar card, PAN card, or passport
• Address proof — Aadhaar, utility bill, or voter ID
• Insurance documents — Last valid insurance (if available)
• Pollution Under Control (PUC) certificate — If available
• NOC from financer — If the vehicle has an active loan/hypothecation
• Form 26 — Application for Certificate of Deposit (scrapping)

Step-by-Step Process

Step 1: Automated Fitness Test

• Take your vehicle to a government-authorized Automated Testing Station (ATS)
• The vehicle undergoes automated tests for braking, emission levels, headlight alignment, noise, and structural integrity
• Fee: ₹300–₹500 (varies by vehicle type)

Step 2: Receive Fitness Test Result

• If the vehicle passes, the fitness certificate is renewed for 5 years
• If the vehicle fails, you receive a failure report and must either repair and retest or proceed to scrap

Step 3: Choose an Authorized Scrapping Facility

• Find a Registered Vehicle Scrapping Facility (RVSF) near you
• List available on parivahan.gov.in or MoRTH website
• Currently, 80+ authorized scrapping facilities are operational across India

Step 4: Submit Vehicle for Scrapping

• Drive or tow the vehicle to the RVSF
• Submit required documents
• The facility inspects and photographs the vehicle

Step 5: Vehicle Scrapping and Certificate

• The RVSF dismantles the vehicle in an environmentally compliant manner
• Hazardous materials (battery, oil, coolant) are disposed of safely
• You receive a Certificate of Deposit (CoD) — proof that the vehicle has been scrapped

Step 6: Claim Incentives

• Use the Certificate of Deposit to claim incentives when purchasing a new vehicle
• The RTO deregisters the old vehicle from the Vahan database

Scrap Value and Incentives

What You Get for Scrapping

Penalties for Not Scrapping

Automated Testing Stations (ATS)

The government is setting up ATS centres across India for standardized fitness testing. Key features:

• Fully automated — No manual discretion, computer-based pass/fail
• Tests conducted: Braking efficiency, emission levels, headlight aim, noise levels, body structure integrity
• Time: Approximately 20–30 minutes per vehicle
• Cost: ₹300 for two-wheelers, ₹500 for cars, ₹1,000 for commercial vehicles (approximate)

Important Tips

1. Check your vehicle's age — Calculate from the RC registration date, not manufacturing date
2. Get fitness tested before it lapses — Avoid penalties and green tax surcharges
3. Choose authorized RVSFs only — Unauthorized scrapping doesn't qualify for incentives
4. Retain the Certificate of Deposit — You need it for new vehicle purchase incentives
5. Clear hypothecation first — Get NOC from your bank/financer before scrapping

FAQs

Q1: Is the scrappage policy mandatory for all old vehicles?

Not immediately mandatory for private vehicles. However, vehicles that fail the automated fitness test cannot be driven legally. Government vehicles older than 15 years are mandatorily scrapped.

Q2: What is the Certificate of Deposit (CoD)?

The CoD is an official document issued by an authorized scrapping facility confirming your vehicle has been scrapped. It entitles you to incentives on new vehicle purchase and is valid for 2 years.

Q3: Can I scrap my vehicle voluntarily before 15 years?

Yes, you can voluntarily scrap any vehicle at an authorized RVSF regardless of age. You will still receive the scrap value and Certificate of Deposit.

Q4: How much scrap value will I get for my car?

The scrap value is typically 4–6% of the ex-showroom price of an equivalent new vehicle. For example, scrapping an old car equivalent to a ₹8 lakh new car may yield approximately ₹32,000–₹48,000.

Q5: Where can I find authorized scrapping facilities near me?

Visit parivahan.gov.in or the MoRTH website at morth.nic.in for a list of Registered Vehicle Scrapping Facilities across India.

Q6: Will the scrappage policy increase used car prices?

The policy may impact the used vehicle market, but the government's intent is to remove genuinely unfit vehicles. Well-maintained vehicles that pass fitness tests can continue to operate regardless of age.

Disclaimer: CitizenNest is an independent informational platform and is not affiliated with any government department. Information is compiled from official sources and may change. Always verify current rules on the official MoRTH website.