Representational photo
TFP Bureau, New Delhi, August 9, 2024: The Government of India is intensifying efforts to reduce pollution and encourage the removal of old, unfit vehicles from the roads through the Vehicle Scrappage Policy, 2021. The Ministry of Road Transport and Highways (MoRTH) has introduced several incentives to encourage vehicle owners to scrap their End-of-Life Vehicles (ELVs) in an environmentally responsible manner.
As part of the policy, MoRTH issued GSR 720(E) on October 5, 2021, which provides a concession in Motor Vehicle Tax of up to 25% for non-transport vehicles and up to 15% for transport vehicles purchased against a ‘Certificate of Deposit’—a document provided when an old vehicle is scrapped. Furthermore, GSR 714(E) dated October 4, 2021, states that vehicles registered with a ‘Certificate of Deposit’ will not be charged a fee for the issuance of a new registration certificate.
The policy also establishes a formal framework for scrapping facilities. The Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021, outlined in GSR 653(E) on September 23, 2021, detail the criteria for setting up Registered Vehicle Scrapping Facilities (RVSFs). These facilities must adhere to stringent guidelines issued by the Central Pollution Control Board (CPCB) for the safe recycling and disposal of hazardous materials from scrapped vehicles.
RVSFs are required to undergo annual regulatory and compliance audits, as well as audits of their mass flow statements, ensuring accountability and adherence to environmental standards.
The Central Pollution Control Board has published guidelines for the environmentally sound handling and scrapping of ELVs, released in March 2023. Additionally, the Ministry of Environment, Forest, and Climate Change has introduced the End-of-Life Vehicles (Management) Rules, 2024, which establish an Extended Producer Responsibility (EPR) framework. This framework mandates that vehicle producers, including importers, are responsible for ensuring that their vehicles are scrapped at RVSFs.
The Vehicle Scrappage Policy aims not only to reduce pollution from outdated vehicles but also to formalize and integrate the previously unorganized scrapping sector into the official ecosystem. As of now, 62 RVSFs have been established across India, with 22 of them set up by former informal scrappers.
This information was provided by Union Minister for Road Transport and Highways, Shri Nitin Gadkari, in a written reply to the Lok Sabha today.
