In India, vehicle scrapping is regulated by the
National Automobile Scrappage Policy (or Voluntary Vehicle-Fleet Modernization Program), which aims to phase out unfit, polluting vehicles in favor of safer, modern alternatives.
Eligibility & Triggers for Scrapping
The policy primarily determines eligibility based on a vehicle's fitness rather than just its age:
- Mandatory Scrapping: Any vehicle that fails its fitness test at an Automated Testing Station (ATS) is classified as an End-of-Life Vehicle (ELV) and must be scrapped.
- Government Vehicles: All central and state government vehicles older than 15 years must be scrapped.
- Commercial Vehicles: Mandatory fitness testing begins after 15 years. If unfit, they must be scrapped.
- Private Vehicles: Subject to fitness tests after 15 years (renewed every 5 years). While voluntary, the cost of re-registration for vehicles older than 15 years is significantly higher to discourage their continued use.
The Scrapping Process
- Deregistration at RTO: The owner must first apply for deregistration at the Regional Transport Office (RTO) by submitting the original Registration Certificate (RC) and an affidavit.
- Handover to RVSF: The vehicle must be taken to a Registered Vehicle Scrapping Facility (RVSF), which are government-authorised centres listed on the VAHAN database.
- Dismantling: The RVSF removes hazardous materials (liquids, batteries, gases) and cuts out the Chassis Number (VIN) plate to prevent illegal reuse.
- Certificate Issuance:
- Certificate of Deposit (CoD): Issued upon vehicle handover; it is a tradable document used to claim incentives.
- Certificate of Vehicle Scrapping (CVS): Issued after final dismantling as permanent proof of destruction.
Incentives for Owners
Owners who scrap their vehicles through an authorised RVSF are eligible for several benefits:
- Scrap Value: A payment of approximately 4–6% of the new vehicle's ex-showroom price.
- Registration Fee Waiver: Complete waiver of registration fees for a new vehicle purchase.
- Road Tax Rebate: State governments may offer a concession of up to 25% for private vehicles and 15% for commercial vehicles.
- Manufacturer Discount: Automakers are advised to provide an additional 5% discount on new vehicle purchases against a CoD.
Required Documents
- Original Registration Certificate (RC).
- Owner’s ID Proof (Aadhaar, PAN) and Address Proof.
- No Objection Certificate (NOC) from the financier (if the vehicle is on loan).
- Affidavit stating the vehicle is free of legal encumbrances, theft cases, or pending challans.