Vehicle Scrappage Policy, 2021

In order to incentivize the vehicle owners to scrap old, unfit and polluting (End of Life vehicles) vehicles, under the Vehicle Scrapping Policy, MoRTH has issued GSR 720 (E) dated 5th October 2021 to provide concession in the Motor Vehicle Tax of up to 25% in case of non-transport vehicles and up to 15% in case of transport vehicles which are purchased against the ‘Certificate of Deposit’.

GSR 714(E) dated 04.10.2021 provides that, in case the vehicle is registered against submission of ‘Certificate of Deposit’, the fee for issue of certificate of registration shall not be levied.

The Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 issued vide GSR 653(E) dated 23.09.2021 (as amended from time to time) provides the rules to establish Registered Vehicle Scrapping Facilities (RVSFs).

Sub-rule (xix) of rule 10 of the aforementioned rules provides that the RVSF shall ensure the removal or re-cycling or disposal of hazardous parts of the scrapped vehicle is done as per the guidelines issued by the Central Pollution Control Board (CPCB) for environmentally sound management of End-of-Life Vehicles and AIS-129.

As per rule 14 of these rules, the Registered Scrapper is required to conduct annual regulatory and compliance audit, and audit of the mass flow statement of the RVSF, by any of the agencies specified under rule 126 of the Central Motor Vehicles Rules, 1989.

CPCB has published the Guidelines for environmentally sound facilities for handling and scrapping of End-of-Life vehicles in March, 2023.

Ministry of Environment, Forest and Climate Change has notified the End-of-Life Vehicles (Management) Rules, 2024 vide S.O. 367 (E) dated 30.01.2024. These rules provides a framework of Extended Producer Responsibility (EPR) where the producers (including importers) of vehicles are responsible for scrapping of End-of-Life vehicles at RVSFs.

The Vehicle Scrapping policy aims to reduce pollution from old and unfit vehicles in an environment friendly manner through a scientific scrapping process. The notification issued vide GSR 653(E) (as amended from time to time) provides for the integration of unorganised/informal sector with the formal scrapping ecosystem. Out of the 62 RVSFs established so far, 22 Nos have been established by the former informal scrappers.

This information was given by the Union Minister for Road Transport and Highways, Shri Nitin Gadkari in a written reply in the Lok Sabha today.