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Vehicle Scrapping Policy in India: Rules, Benefits & How to Scrap Your Car

Online vehicle ownership transfer process on Parivahan portal - RC transfer and Form 29 Form 30

The automobile industry is growing at an unprecedented rate in India, and the number of outdated, pollution-causing vehicles on the roads has also increased. The Government of India introduced the Vehicle Scrapping Policy in 2021 to tackle this challenge and promote sustainability. The policy aims to phase out old, polluting vehicles and promote greener, safer roads. The policy, introduced by the Government of India in 2021, aims to reduce vehicular pollution, improve road safety, and promote the use of fuel-efficient and electric vehicles. In this guide, we explain the eligibility criteria, scrapping process, incentives, and how vehicle owners can benefit.

What Is the Vehicle Scrapping Policy in India?

The Vehicle Scrapping Policy, officially called the Voluntary Vehicle-Fleet Modernization Program (VVMP), encourages owners to voluntarily scrap old and unfit vehicles after they fail fitness tests. It promotes cleaner mobility by replacing high-emission vehicles with newer, environmentally compliant models.
Core Objectives of the Scrappage Policy

  • Since older vehicles contribute to air pollution, scrapping or dumping them helps reduce harmful emissions.
  • Aged vehicles are mechanically unsafe, increasing the risk of accidents. We can improve road safety by eliminating the number of aged cars on roads.
  • Encourages commuters to purchase new, environment-friendly, fuel-efficient vehicles.
  • Supports recycling industries by reusing metal, plastic, and other vehicle components.

Why Was This Policy Introduced?

Studies show that a significant number of vehicles in India are over 15 years old and contribute disproportionately to air pollution. These vehicles consume more fuel, emit higher levels of pollutants, and are unsafe for everyone on the road.
This policy showcases India’s proactive approach to addressing these challenges, ensuring they align with global sustainability goals and fight climate change.
Key Benefits of the Scrappage Policy

  • Age Limit: Sets limits for vehicle’s age; Private vehicles require fitness tests after 15 years of registration and commercial vehicles require the same after 8 years (renewed annually).
  • Automated Fitness Tests: To make sure that there are no biased evaluations, traditional checks have been replaced with Automated Testing Stations (ATS).
  • All government and public sector vehicles should be scrapped and decommissioned if they are older than 15 years.
  • Incentives for Vehicle Owners: When purchasing a new vehicle, private vehicles are offered a 25% tax rebate, whereas commercial vehicles are offered 15%. In addition to this perk, the registration fee is waived for new cars, and you also get an extra 5% discount when you approach Upride.
  • Certificate of Vehicle Scrapping (CVS): Upon scrapping, a legal document is issued, essential for claiming tax rebates and discounts on new vehicles.

Step-By-Step Guide to Scrapping Your Vehicle in India

  • Private vehicles: Fitness test after 15 years
  • Commercial vehicles: Fitness test after 8 years
  1. Original Registration Certificate (RC)
  2. Owner’s ID Proof (Aadhaar, Passport, etc.)
  3. Pollution Under Control (PUC) Certificate
  4. Insurance Documents (if applicable)
  5. Address Proof
  6. Bank Account Details for receiving the scrap value.
  • The next step involves finding an Authorized Vehicle Scrapping Facility (AVSF). For this, you can visit the Parivahan Sewa Portal at (Parivahan Sewa Portal). Once familiar with the AVSFs, you can start applying for the Scrapping procedure.
  • Navigate to the website given above i.e., (Parivahan Sewa Portal) and select the state and RTO where the vehicle has been registered.
Vehicle Scrapping Policy in India
  • Enter the details, as asked, and log in to the portal by authenticating your identity after entering an OTP.
  • On the next page, select the "Scrap Your Vehicle” option, and in the next tab enter the last five digits of your chassis number or engine number.
Vehicle Scrapping Policy in IndiaVehicle Scrapping Policy in India
  • Select the state and select your available and convenient AVSF.
  • Upload all the required documents and wait for the AVSF center to contact you.
  • Once the selected AVSF center contacts you and schedules your inspection to verify the eligibility, if approved, the center dismantles the vehicle as per the environmental norms. Notable point is, valuable materials are recycled and hazardous waste is disposed off safely contributing to a safe environment.
  • After dismantling, the AVSF issues a CVS (Certificate of Vehicle Scrapping), which is crucial for:
    • Deregistering your vehicle from the RTO.
    • Claiming tax benefits
    • Claiming Discounts
    • Buying the next vehicle

How Upride Helps in this Process

  • Consulting Upride in this process helps you with gaining end-to-end support primarily by helping you access certified scrapping centers certified in compliance with all legal rules.
  • Scrapping through Upride helps you gain an extra 5% discount on your next purchase
  • Upride also helps you choose the next perfect car, and also helps in teaching you how to drive at your flexibility.

It is obvious, after scrapping your old car you will look for a new one. Let Upride help you here.

How Upride Helps:

  • Personalized Recommendations: Based on your budget, lifestyle, and preferences.
  • Comparative Analysis: Compare models, features, and fuel efficiency.
  • Eco-Friendly Options: Explore electric vehicles and hybrid models.
  • Insurance Certificate: Proof of active insurance policy
  • PUC Certificate: A valid and active PUC (Pollution Under Control) Certificate.
  • Exclusive Offers: Enjoy special deals, financing options, and that 5% discount after scrapping.

Upride is your one-stop solution from handling paperwork to helping you choose your next car. So why wait, visit our website at (Upride) or contact us by dialing 9429691034.

What Happens If You Don’t Scrap an Unfit Vehicle?

If a vehicle fails the mandatory fitness test and is declared unfit, it cannot be legally driven or re-registered. Continued use may result in penalties under motor vehicle regulations.

Frequently Asked Questions (FAQs)

  • Is scrapping mandatory for all old vehicles?No, scrapping is voluntary unless your vehicle fails the fitness test (For more information, visit our blog for the Vehicle Fitness Certificate). However, government vehicles older than 15 years must be scrapped.
  • What happens if my vehicle fails the fitness test?If your vehicle fails the test and cannot be repaired to meet the standards, it must be scrapped without further delay.
  • Can I scrap my vehicle without the original RC?No, the original Registration Certificate (RC) is required. If lost, you must apply for a duplicate RC before scrapping. And Upride can help you in this process.
  • How much money will I get for scrapping my car?The scrap value depends on the weight and condition of the vehicle. Upride ensures you get the best market value.
  • Can Upride help me choose my next car?Upride offers expert consultation to help you find your next car based on your needs and budget.

Conclusion: Is It Time to Scrap Your Old Vehicle?

India’s Vehicle Scrapping Policy is a significant step toward reducing pollution and modernizing the automobile sector. If your vehicle is over 15 years old and struggling to meet emission standards, scrapping it may not only benefit the environment but also offer financial incentives on your next purchase. Evaluating your vehicle’s condition and understanding the scrapping process ensures a smooth and legally compliant transition.