The Newly Launched Vehicle Scrapping Policy Explained In Detail

  • Aug 13, 2021
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The main motive behind this policy is to phase out old, polluting and unfit vehicles. Allow us to explain


Ahead of the 75th Independence day on August 15, Prime Minister Narendra Modi has rolled out the new Vehicle Scrapping Policy for the country. The main motive behind this new policy is to get rid of old and polluting vehicles, which emit more pollutants and have less efficiency, to reduce overall pollution in the country. 

Commenting on the launch of the new policy, the Prime Minister said, “Vehicle scrapping will help phase out unfit & polluting vehicles in an environment friendly manner. Our aim is to create a viable #circulareconomy & bring value for all stakeholders while being environmentally responsible.”

The launch of this policy will bring the auto and metal related industries into the circular economy where they will get to reuse the scrapped metal as raw materials. To ensure our citizens get a hang of it, the government has rolled out some guidelines and rules.

During the renewal of its fitness certificate, a vehicle has to pass a fitness test. If it fails to pass, the vehicle has to be mandatorily scrapped. At present, more than one crore vehicles are either unfit or haven’t been applied for re registration. So the amount of pollution savings from these vehicles would be substantial if they are scrapped. 

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For successful implementation of this policy, the Government believes it would need at least 450 to 500 automated testing stations and 60 to 70 vehicle scrapping facilities for an investment of Rs 10,000 crore. This would also generate more employment in the automobile industry. 

Heavy commercial vehicles will need to undergo mandatory testing from April 2023 while private vehicles are proposed to be mandated from July 2024 in a phased manner. To promote scrapping in the country, the government has welcomed recognised organisations and even small-level business people. The latter who are already in this industry will be greatly benefited. 


Customers scraping their vehicles will get a certificate and need not pay registration fees while buying a new vehicle. They will also be eligible for road tax concessions and discounts from manufacturers as well as the government. The government also believes that precious lives could be saved as old vehicles aren’t as safe as newer models. 

At present, Mahindra is one of the mainstream car brands that has started an in-house scrapping service. In its case, it is called CERO and will take care of all the procedures involved, including providing an estimate, deregistering the model from the RTO, as well as all the formalities regarding scrapping. Renault has also tied up with Mahindra to offer its own in-house service, R.E.L.I.E.V.E. Also, post the unveiling of this policy, Tata has announced it will set up its own scrapping plant in Gujarat that’s capable of recycling 36,000 vehicles per year. 

Also Read: Union Budget 2021-22: Highlights For The Automobile Industry

At present, the Government’s latest scrappage policy has been launched in Gujarat before it’s rolled out to the rest of India. Would you scrap your old vehicle in lieu of a new one? Let us know in the comments section below. 

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