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Government Scrappage Policy Explained

The Indian Government’s Vehicle Scrappage Policy is designed to phase out old, unsafe, and polluting vehicles while promoting eco-friendly practices and boosting the auto industry.

Eligibility

Private vehicles older than 20 years and commercial vehicles older than 15 years must undergo fitness tests. Failure results in deregistration.

Benefits

Get scrap value for old vehicles, tax rebates, and discounts on new vehicle purchases, along with lower maintenance & fuel costs.

Objectives

Reduce air pollution, increase road safety, promote recycling, and boost demand for new, eco-friendly vehicles.

Implementation

Authorized scrapping centers will provide Certificate of Deposit, which can be used to avail benefits while purchasing new vehicles.

Frequently Asked Questions

1. Why was the Scrappage Policy introduced?

To reduce pollution from old vehicles, improve road safety, and encourage the use of modern, fuel-efficient cars.

2. What do I get after scrapping my vehicle?

You receive a government-recognized Certificate of Deposit, which gives you eligibility for tax concessions and discounts on new vehicles.

3. Is the scrapping process mandatory?

Yes, if your vehicle fails the mandatory fitness test or exceeds the age limit as defined under the policy.