There are millions of cars on the Indian roads, and for the longest time, one issue faced by every Indian was how to get rid of old, polluting vehicles. With no proper system in place, no one had a idea what to do with their cars.
But this changed in 2021 when the government introduced the New Vehicle Scrappage Policy. A policy that provides a way for everyone to scrap their old cars, enjoy financial benefits, and contribute to cleaner air.
Different Terminology
The government uses some specific terms in this policy. Here’s what they mean in plain English:
- RVSF: RVSF is a short form for Registered Vehicle Scrapping Facility, and it is a place where your car gets scrapped legally.
- ELV: ELV is a short form for End-of-Life Vehicle, which means cars that are declared unfit to drive. Which includes cars damaged by accident, floods or disasters, or cars whose registration has been cancelled.
- CoD: CoD is a short form for Certificate of Deposit and is a type of digital document that proves you have transferred the ownership of your car to the scrapping facility. This document also makes you eligible to claim all the financial benefits from the government.
- Certificate of Vehicle Scrapping: The final document that confirms your vehicle has been completely and permanently disposed of.
- Final Disposal: The last step, where the vehicle is physically destroyed – the chassis number is cut out, and the engine and hazardous fluids are properly disposed of according to environmental rules.
Step 1: Visiting the Scraping Facility
First, you need to visit a scrapping facility such as Recycle City and fill out a simple application form (called Form-2). Then the dealer will verify your identity and check whether you are a registered owner.
Once everything checks out, you will be provided with a digital receipt by the dealer. This receipt is linked directly to the government databases, so your records are updated right away.
Step 2: Paperwork
You’ll also need to submit the following documents, as listed below:
- RC
- PAN card copy
- Proof of identity and address (like your Aadhar card, driving license, or utility bills)
- NOC – A written statement confirming your vehicle has no legal issues or criminal cases attached to it
If the vehicle belongs to an owner who has passed away, then in this case, we’ll need additional documents like a death certificate.
Once everything is verified and confirmed, the dealer will transfer the scrap payment directly to your bank account.
Step 3: Certificate of Deposit
A Certificate of Deposit is one of the most important documents, as it is proof that you have officially transferred the ownership of your car to the scrapping facility.
Also, it makes you eligible for all the benefits under the government’s scrappage policy, such as tax rebates and registration fee waivers when you buy a new vehicle. The certificate is valid for one year from when it’s issued, and it works across the entire country.
Step 4: Scraping and Recycling
Before we dismantle the car, we remove all the hazardous materials. This includes draining all the fluids – engine oil, coolant, antifreeze, and any gases that can affect the environment. We follow strict environmental guidelines set by the Central Pollution Control Board.
Once extracted, these fluids are stored in closed containers so that they don’t contaminate soil or groundwater. As physical proof, the dealer might cut out the piece of metal with your vehicle’s chassis number on it and keep it for at least three months.
Finally, the dealer will issue you a Certificate of Vehicle Scrapping, which officially marks the end of your vehicle’s life. All legal and environmental procedures are complete.