India’s vehicle scrappage policy has moved from a background regulation to something a lot of owners are actively running into – a fitness test notice, a dealer mentioning a tax rebate, or an old car that’s crossed an age threshold nobody was tracking. It’s reasonable once you understand it, but what’s mandatory versus optional isn’t always explained clearly in one place.
What the Policy Actually Says
Announced by MoRTH in 2021 and rolled out progressively since, the policy requires vehicles beyond a certain age to pass a fitness test to stay on the road. A vehicle that fails, or isn’t renewed, is classified as an End-of-Life Vehicle (ELV) in the government’s VAHAN database and must be scrapped through a Registered Vehicle Scrapping Facility (RVSF).
Testing happens at Automated Testing Stations (ATS), assessing braking, suspension, structural safety, and emissions – recorded digitally, removing the manual inspection loophole that existed before.
Private vs Commercial Vehicles
Age thresholds differ by use. Private vehicles face a fitness test at 20 years from registration – a well-maintained vehicle that passes can renew and stay on the road. Commercial vehicles and two-wheelers face a shorter 15-year window. Either way, the fitness test result decides the outcome, not the age number alone.
Did you know? As of April 2023, over 6 crore vehicles in India – about 18% of all registered vehicles – were over 15 years old, per data shared in the Rajya Sabha. The share varies sharply by state: Delhi tops out at roughly 41%, Bihar sits under 3% (source: Factly).
Mandatory or Voluntary?
The core framework is voluntary. For most private owners, scrapping only becomes mandatory once a vehicle fails its fitness test post-threshold. Before that, owners can voluntarily scrap at any time through a registered facility – damaged, unused, or simply not worth maintaining.
Government vehicles differ: central and state vehicles older than 15 years must be scrapped, with non-compliance affecting fitness certification. Private owners face no such cutoff, but incentives encourage voluntary scrapping before it becomes unavoidable.
What You Get: Incentives and Benefits
An authorised RVSF and a valid Certificate of Deposit (CoD) unlocks:
- Road tax rebate up to 25% on a new personal vehicle, in many states
- Road tax rebate up to 15% on a new commercial vehicle
- Registration fee waiver on the new vehicle, typically in full
- An additional manufacturer discount in some cases
These figures vary by state and manufacturer – confirm current terms at purchase.
Recent developments: In January 2025, MoRTH proposed doubling the rebate to up to 50% for owners scrapping older BS-I/BS-II vehicles – still a draft notification, not confirmed policy. Separately, the government has been reviewing a shift from a purely age-based system toward one weighing actual fitness and emissions performance. Neither change is finalised.
Choosing an Authorised Facility
Confirm it’s an RVSF. Only an RVSF can legally scrap your vehicle and issue a CoD. An unregistered dealer can dismantle a vehicle, but can’t close out its registration.
Look for a clear process. Global Scrappage Yards lays out each stage on its how it works page – a reasonable standard for any authorised facility.
Ask about responsible handling. Depollution, safe fluid removal, and proper battery disposal should happen before dismantling – see the environmental impact page.
Paperwork and Process Overview
Documents required: RC, owner ID proof, insurance details, PUC certificate if available, and loan NOC if financed.
Process: verification → valuation by weight, material, and condition → pickup or drop-off → deregistration filing → dismantling, after fluids and hazardous parts are removed → Certificate of Deposit issued.
The full range of services is on the services page, and common questions are answered on the FAQs page.
If you’re in Chandigarh, Mohali, Panchkula, or across Punjab and Haryana, read more about how Global Scrappage Yards operates as a registered facility. Still working out where your vehicle stands? Browse more guides on scrapping, documentation, and eligibility on the blog.
Bottom Line
Know your vehicle’s age threshold, understand that fitness – not just age – decides the outcome, and use a registered facility if scrapping becomes the right call. Understanding these basics before you need them keeps the process from turning into a headache.
FAQs
1. What is the vehicle scrappage policy?
A MoRTH policy requiring vehicles beyond a set age to pass a fitness test to remain registered; those that fail must be scrapped at an RVSF.
2. What’s the policy for private vehicles?
A fitness test after 20 years. Vehicles that fail are classified as End-of-Life Vehicles and must be scrapped.
3. Is scrapping mandatory or voluntary?
Mandatory only after a vehicle fails its fitness test post-threshold. Before that, owners can voluntarily scrap through a registered facility.
4. What is voluntary scrapping?
Scrapping by choice, ahead of any mandatory requirement, to claim available tax rebates and incentives.
5. What benefits do I get?
Typically up to 25% road tax rebate for personal vehicles (15% commercial), a registration fee waiver, and sometimes a manufacturer discount.
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