India's Vehicle Scrapping Policy

📋 What is India's Vehicle Scrappage Policy?

India's National Vehicle Scrappage Policy is a government initiative to phase out old, unfit, and polluting vehicles from Indian roads. The policy was announced by the Union Budget 2021–22 and implemented in phases by MoRTH.

The twin objectives are environmental (reducing air pollution and fuel inefficiency) and economic (boosting new vehicle sales and domestic recycled material supply chains).

🚗 Which Vehicles Are Covered?

The policy covers a wide range of vehicles. Here's a quick breakdown:

• Government / PSU Vehicles: 15+ year old government-owned vehicles were the first phase — mandatory scrapping began April 2022.
• Private Vehicles: Petrol vehicles over 15 years old and diesel vehicles over 10 years old require a fitness re-test or must be scrapped.
• Commercial Vehicles: Subject to mandatory Automated Fitness Testing (AFT). Vehicles that fail must be scrapped.
• Two-Wheelers: Also covered under the policy — older two-wheelers can be voluntarily scrapped for benefits.
• Three-Wheelers & Tractors: Included in the framework with applicable age and fitness criteria.

🔬 Automated Fitness Test (AFT)

The policy introduced Automated Testing Stations (ATS) — computerized, non-invasive vehicle fitness testing centers that assess your vehicle against a standardized set of parameters.

• Emission levels (exhaust gases)
• Braking performance and system integrity
• Headlights, taillights, and indicator alignment
• Speedometer accuracy
• Structural integrity of the chassis and body
• Windshield and mirror condition
• Overall roadworthiness

Vehicles that fail the AFT cannot be re-registered and must be scrapped at a registered RVSF. Certificates of Roadworthiness are issued for passing vehicles, valid for 5 years for private vehicles and 2 years for commercial vehicles.

📅 End-of-Life Vehicle (ELV) Age Rules

• Private Petrol Vehicles: Registration renewal requires AFT after 15 years of age.
• Private Diesel Vehicles: Registration renewal requires AFT after 10 years of age (and some states/courts enforce stricter bans).
• Commercial Vehicles (all fuel types): Mandatory AFT every 2 years from the 8th year of registration.
• Government Vehicles: Mandatory scrapping after 15 years — no fitness test option.
• Two-Wheelers: Voluntary scrapping with benefits; age limits under phased rollout.

💰 Financial Benefits of Scrapping Your Vehicle

This is where the real value lies. Scrapping through an authorized RVSF like Vehicle Scrapping India unlocks a stack of financial benefits:

• Scrap Value Payment: You receive the market-rate scrap value of your vehicle's material weight — paid directly to you, immediately on pickup.
• Road Tax Rebate: Up to 25% rebate on Road Tax when you purchase a new vehicle. Present your Certificate of Deposit at the time of new vehicle registration.
• Registration Fee Waiver: The full registration fee for the new vehicle is waived entirely on presentation of your Certificate of Deposit.
• OEM / Manufacturer Discount: Most major vehicle manufacturers (Maruti, Tata, Hyundai, Honda, Hero, Bajaj, etc.) offer an additional exchange bonus of ₹5,000–₹25,000+ when you scrap through an authorized facility.
• Insurance Benefit: Some insurers offer discounts on new vehicle insurance when transitioning from an officially scrapped vehicle.

📜 Certificate of Deposit (CoD) — Your Key Document

The Certificate of Deposit (CoD) is the most important document you receive from us after scrapping your vehicle. It is issued exclusively by government-authorized RVSFs and is required to claim all scrapping benefits.

• Issued in your name (vehicle owner's name)
• Contains the vehicle registration number, chassis number, and scrapping date
• Valid for the purpose of claiming road tax rebate at any RTO in India
• Accepted by all new vehicle dealers for OEM bonus claims
• Serves as legal proof that your vehicle has been officially deregistered

⚙️ Our Scrapping Process — Step by Step

• Step 1 — Inquiry & Quote: You fill in our form or call us. We assess your vehicle details and give you a firm price within 1 hour.
• Step 2 — Document Verification: We verify your RC, identity documents, and ownership. Our team guides you through any missing documentation.
• Step 3 — Pickup: Our team arrives at your location (free of charge) to inspect and collect the vehicle. You hand over the keys and documents.
• Step 4 — De-Pollution: At our facility, all fluids (oil, coolant, battery acid), airbags, and hazardous materials are safely removed and disposed of per regulatory guidelines.
• Step 5 — Dismantling: Reusable parts are catalogued. The vehicle body is shredded and sent to authorized steel mills for recycling.
• Step 6 — Payment: Immediate payment to your bank account or in cash.
• Step 7 — Certificate Issuance: Official Certificate of Deposit issued in your name, digitally and in physical form.
• Step 8 — RTO Intimation: We handle the deregistration intimation to the relevant RTO so the vehicle is officially struck off the national vehicle database.

🌿 Environmental Impact — Why This Policy Matters

Old vehicles contribute disproportionately to India's air quality crisis. A 15-year-old vehicle typically emits 10–40 times more pollutants than a modern BS6-compliant vehicle. India's vehicle scrappage policy aims to:

• Remove approximately 3.7 crore unfit commercial vehicles from Indian roads
• Significantly reduce particulate matter (PM2.5) and NOx emissions in major cities
• Increase fuel efficiency across the fleet — reducing India's oil import bill
• Recover millions of tonnes of high-grade steel, aluminum, and copper annually through regulated recycling
• Eliminate illegal dumping and informal scrapping that contaminates soil and groundwater

By choosing to scrap your vehicle through Vehicle Scrapping India, you are contributing directly to a cleaner Delhi NCR and a more sustainable automotive future for India.

❓ Quick Policy FAQ