Scrapping Policy
Scrapping Policy
Scrapping Policy implemented from 23/09/2012 through Government Order G.S.R. 653 (E). As last update in January 2022, India has been through various changes in its scrapping policy, particularly in the automobile sector. The Indian government has been actively promoting the scrapping of old vehicles to encourage the adoption of newer, more fuel-efficient and environmentally friendly vehicles.
Proposal to phase out old polluting vehicles and improve road safety. The policy aimed to create an ecosystem for the phased scrapping of old and unfit vehicles through voluntary scrapping centers. Under this policy, vehicle owners would be incentivized to scrap their old vehicles, and it also included measures to boost the automotive sector by encouraging the purchase of new vehicles.
- Proposal to phase out old polluting vehicles and improve road safety.
- Incentivizes vehicle recycling with policy perks.
- Falls under Voluntary Vehicle-Fleet Modernization Program(V-VMP).
What is a Registered Vehicle Scrapping Facility (RVSF)?
A Registered Vehicle Scrapping Facility (RVSF) is a specialized facility licensed and regulated by government authorities to dismantle & recycle end-of-life vehicles (ELVs). Recycle City is a distinguished Registered Vehicle Scrapping Facility.
Established Year: Such vehicles are to be scrapped at Registered Vehicles Scrapping Facilities (RVSFs) Established In! accordance with GSR 653(E) dated 23th September, 2021.
Important Points of RVSF
- Organized Market for End of Life Vehicles recycling
- Employment generation
- Scrapping policy benefits
- Increased Road Safety
- Promotion of Circular Economy
- One Stop Solution for Vehicle Recycling.
Benefits of Recycling your Vehicle:
1. Get benefits upto 2-3 lakhs on scrapping your vehicle.
2. Get Certificate of Deposit
3. State governments will offer concession on motor vehicle tax:
(a) Up to 25% for non-transport vehicles.
(b) Up to 15% for transport vehicles.
Certificate of Deposit
Certificate of Deposit is a Government authorized certificate that can be issued by Recycle City. This certificate helps avail benefits such as:
1. Scrap value of old vehicle now approx., 4-6% of ex-showroom price of a new vehicle.
2. Registration fees to be waived-off on new vehicles.
3. Get 5% discount on new vehicles from Auto OEM.
What is a Voluntary Vehicle Fleet Modernization Program(VVMP)?
The Voluntary Vehicle Fleet Modernization Program of fers incentives for upgrading vehicles,promoting efficiency, safety & environmental sustainability in transportation systems.
- Reduce pollution by scrapping ~1 Cr vehicles without valid fitness and registration
- Improve road, passenger and vehicular safety
- Boost auto sector sales and generate employment
- Improve fuel efficiency and reduce maintenance cost for vehicle owners
- Formalize the currently informal vehicle scrappage industry
- Boost availability of low-cost raw materials for automotive, steel and electronics industry
Comparison of emissions from Pre-BS and BS VI vehicles and the impact on reduction in pollution due to scrapping of existing ELVs