New Vehicle Scrappage Policy Everthing You Need To Know

What is New Vehicle Scrappage Policy, Benifits, Process, Implimentation and Aims

The Government of India has launched its vehicle scrappage policy that is pointed toward eliminating unfit and polluting vehicles in an environmentally friendly way. Automated Testing Stations and Registered Vehicle Scraping facilities across the country will be made as an infrastructure for this initiative. The Policy was disclosed by Prime Minister Narendra Modi in virtually addressing the Gujarat Investor Summit on Friday.

PM Modi said, “The launch of Vehicle Scrappage Policy today is a significant milestone in India’s development journey. Vehicle scrapping will help phase out unfit and polluting vehicles in an environment-friendly manner. Our aim is to create a viable circular economy and bring value for all stakeholders while being environmentally responsible,”.

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As the name suggests, the strategy will help in eliminating old, unfit vehicles. The scrappage policy will become effective following the registration period of a vehicle is finished; it would then need to go through a compulsory fitness test. According to motor vehicle laws in the country, a traveler vehicle has a life of 15 years and business vehicles have a life expectancy of 10 years.

Vehicles on the streets past these terms are considered to contaminate the climate at a more speed compared to with new vehicles. They are likely to feature old technology, making them risky for use on streets. The vehicles likewise customer more fuel contrasted with more up to date vehicles. The policy will help people dump their old vehicles methodicallly and  even offer incentives.

vehicle Scrappage Policy
vehicle Scrappage Policy


The Aim of the Vehicle Scrappage Policy is essentially to eliminate and reuse old vehicles through a systematic interaction. A ultimate goal of the approach is to diminish environmental pollution caused by old vehicles that have outperformed their lifecycle and run without a valid fitness certificate. Reusing old vehicles will help in reusing key materials like steel, plastic and copper. This will bring about decreasing the expense of assembling. The approach likewise expects to give a boost to vehicle sales in the nation, given the incentives offered for purchasing new vehicle.


Actually no, not all vehicles that have run past 15 years will be rejected. After fruition of the cutoff points, vehicles should go through a compulsory wellness test, which would decide whether it is fit to run or not. On the off chance that the vehicle fails a wellness test, it won’t get a restoration declaration and can not handle on streets. In the event that a vehicle passes through the fitness test, it will get a renewal certificate and would need to go through a fitness test at regular intervals. Anytime when the vehicle fails the fitness test, the vehicle will become ineligible to run on the streets as the owner will not get a renewed registration certificate.

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As referenced before, the fitness test will decide whether an old vehicle is fit to run past its life span. Basically, a fitness test is detailed examination that will decide the roadworthiness of a vehicle. It will likewise check whether the vehicle is causing more prominent level of environmental pollution. All fitness tests will be directed at computerized fitness test focuses, which are accepted to make the cycle extra severe. For example, regardless of whether the vehicle has misaligned headlamps or on the other hand if the headlamps are not amazing enough, the PC will give it a ‘Fail’.


Owners who scrap their old vehicle and plan to purchase another one will get incentives as a feature of the Vehicle Scrappage Policy. A value of the ex-Showroom cost of the old vehicle, going from 4% to 6 percent, will be given to the owner when they decide to scrap the vehicle. A discount of up to 25 percent of street duty will be given to an individual when he purchases another individual vehicle in the wake of rejecting an old one; the refund will be up to 15 percent for business vehicles. Furthermore, vehicle makers have been encouraged to give a 5 percent markdown on new vehicle buys to people who produce a scrapping certificate and a waiver on the registration fee.


The policy execution will start with heavy commercial vehicles, which should go through mandatory wellness tests beginning April 1, 2023. Any remaining vehicles, including private ones, will be included for the mandatory fitness test from June 1, 2024, in a staged way.