VEHICLE SCRAPPAGE POLICY IN INDIA

The Ministry of Road Transport and Highways launched “The Voluntary Vehicle-Fleet Modernization Program (V-VMP)" or "Vehicle Scrappage Policy" with the aim of ruling out old unfit and polluting vehicles from the system.

Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs) will help the Government in ruling out privately owned commercial and passenger vehicles.

 

 

Importance of Vehicle Scrapping Policy

Every vehicle has a certain time limit to use it for driving. The fuel that comes out of old vehicles pollutes the environment. Using older vehicles multiplies the accidental damages as well. Therefore, after a limited period of time, there is no other alternative left than scrapping old cars or bikes and replacing them with new ones.  

In a nutshell, the bike scrappage policy is a plan of action to preserve the economy. Due to this, retired vehicles can prepare a way for a greener future. 

The Vehicle Scrapping Policy Contributes in

• Minimizing the pollution by 20% and so the nation can be climate positive.
• Boosts employment by launching various Automated Testing Stations
• Enhances road safety with newer vehicles
• Replacing old vehicles may pollute the environment less.
• Buying new cars consuming less fuel protects the environment and boosts automobile sales.

But, how would you identify whether the vehicle needs to get scrapped or not?

The Government of India has provided Automated Testing Stations (ATS) across the country. Fitness tests conducted at ATS verifies your vehicle’s roadworthiness and safety standards.

A fitness certificate is delivered mentioning your vehicle’s condition. A failed vehicle is considered as unsuitable to drive and must be scrapped.

Vehicles that are older than 15 and 20 years are declared as End-Of-Life vehicles. It means, you cannot drive those vehicles more in future and need to get scrapped.

As per the Ministry of Road Transport, more than 1,45,000 vehicles have been scrapped by the end of 2023. 

 

What is Car Scrappage Scheme 2024?

In 2024, the manufacturers have decided to provide a discount up to 20,000 on purchase of a new car if you scrapped your old one.

Before you get excited, you must know following certain conditions as-

• Private, Commercial, vintage, and government vehicles must undergo the fitness test. 
• The old vehicle must be scrapped 6 months before buying a new car. If it is scrapped earlier, then there will be no discount on the new vehicle.
• The discount offer will be in favor of shoppers for one year.
• Apart from this, there is a possibility to expand Automated Testing Stations across different states.  The State Government also offers 25% concessions on motor vehicle tax for private vehicles as well.

Benefits of Car Scrappage Policy

Scrapping is advantageous for the vehicle owner, automobile industry, environment, and others. Here are the car scrapping benefits-

• People can get clean and fresh air instead of polluted air.
• The automobile companies sales rise when buyers complete the purchase for a new vehicle after scrapping the old one.
• Expansion of Automated Testing Stations can create job opportunities.
• Newer vehicles can run with advanced technology that aligns safety standards.

A scrap certificate benefits vehicle owners. They can receive a 4-6% discount on purchase of new expensive cars from manufacturers. Only private vehicles older than 15 years can get this benefit.

Indian roads are accessible to numerous types of vehicles. Owing to this, similar rules can not apply for all vehicles. So, there are different categories made for scrappage. In this, commercial, private, vintage, or government vehicles are included.

Fitness test under the Vehicle Scrappage Policy involves in depth inspection to all these vehicles.   

 

Procedure of Car/Bike Scrapping in India

Before scrapping cars, you need to make your vehicle pass through a fitness test. So, get your vehicle to ATS in your region first. A fitness/ End-of-Life vehicle certificate will be issued to you.

Next, you need to follow the guidelines under Vehicle Scrap Policy.  Let’s understand how to scrap a car in detail.

Step 1: Search and reach out to scrapping centres through their websites.

Step 2: Get your vehicle to them, or request them to collect your vehicle from your place. For this, you need to pay towing charges.

Step 3: Finish the documentation with

- PAN Card

- Vehicle Registration Certificate

- End-of-Life vehicle certificate that ATS has issued

- Cancelled cheque

- Identity proof

- Digital Photograph

- Vehicle owner’s undertaking form

Step 4: Permit to start scrappage

Primarily, recyclers remove fluids from the vehicle, tyres and battery. Then headlights and other body parts get removed manually. One by one the whole vehicles get disassembled.

Step 5: Remaining body shell picked up by the crane and dropped into a crushing unit.

Step 6: Other remaining parts get sold. The recycler ensures the oil leakages from the vehicle to protect the environment.

Step 7: Once the vehicle gets scrapped, you can receive a certificate of destruction.

Step 8:  You may show and submit it to the RTO and receive a scrap value.

Additionally, the scrap certificate benefits the owner to get a new vehicle with discounted rates. But car insurance gets affected by the scrapping.   

 

RTO Rules for Scrapping Old Vehicles in India

Below are the RTO rules vehicle owner need to follow to scrap old vehicle-

• Convey the respective RTO about scrapping your old vehicle.
• Surrender the documents along with the original RC and chassis number plate.
• Make an affidavit mentioning that your vehicle is loan free and doesn’t have an insurance claim.
• RTO will assess these documents and verify the records they have for vehicle sale.

If they find everything settled, they can proceed with the scrapping old vehicle.

 

Vehicle Scrap Policy FAQs

Can I Cancel My Car Insurance While Scrapping It?

Yes you can cancel car insurance once you scrap your car, and the insurance company will refund any paid premium. If a claim is raised during the year you cannot cancel the insurance.

Can We Use a Car After 20 Years in India?

Yes, you can, but it is mandatory to do a car fitness test every 5 years. If it is roadworthy, you can drive, but failing the fitness test means you need to scrap that car.

What are RTO Rules for Car Scrapage?

For car scrapage you must have an affidavit stating the vehicle is not under any loan. Also you may get asked for vehicle related original documents before scrapping your car.

Can I Scrap an Old Car While Buying a New One?

Yes, you can scrap your old car to get liable for a number of benefits and can save money on a new car purchase.

What documents are required for vehicle scrapping?

The vehicle owner’s undertaking form and affidavit are the obligatory documents. Other than this, vehicle registration certificate, end-of-life vehicle certificate is required.

What are the tax benefits for scrapping an old vehicle?

By scrapping old vehicles, the government can provide up to 25% discount on vehicle tax while buying new cars.

Disclaimer:

The information provided in the above blog is for informational purposes only. We recommend consulting with an expert before making any decisions. Quickinsure assumes no responsibility for any actions taken based on the information provided.