National Automobile Scrappage Policy

• Integrity Education, Delhi
• 14, Aug 2021

Why we need scrappage: Older vehicles pollute the environment 10 to 12 times more than fit vehicles and pose a risk to road safety

The objectives of the policy are:

• To reduce population of old and defective vehicles
• Achieve reduction in vehicular air pollutants to fulfil India’s climate commitments
• Improve road and vehicular safety
• Achieve better fuel efficiency
• Formalize the currently informal vehicle scrapping industry
• Boost availability of low-cost raw materials for automotive, steel and electronics industry.

The Policy proposes the following:

• Commercial vehicles to be de-registered after 15 years in case of failure to get the fitness certificate.
• Private Vehicles to be de-registered after 20 years if found unfit or in case of a failure to renew registration certificate. 
• All vehicles of the Central Government, State Government, Municipal Corporation, Panchayats, State Transport Undertakings, Public Sector Undertakings and autonomous bodies with the Union and State Governments may be de-registered and scrapped after 15 years from the date of registration.

Incentives to owners of old vehicles to scrap old and unfit vehicles through registered scrapping centres
(A) Scrap Value for the old vehicle given by the scrapping centre, which is approximately 4-6% of ex-showroom price of a new vehicle.

(B) The state governments may be advised to offer a road- tax rebate of up to 25% for personal vehicles and up to 15% for commercial vehicles

(C) The vehicle manufacturers are also advised for providing a discount of 5% on purchase of new vehicle against the scrapping certificate.

(D) In addition, the registration fees may also be waived for purchase of new vehicle against the scrapping certificate.