An Overall Guide To Government Vehicle Scrap Policy

An Overall Guide To Government Vehicle Scrap Policy

Scrap vehicles hold much importance in terms of the development of the company. However, it has not been an issue for so long. But, now the government has come across its worth. The government has launched a vehicle scrap policy. With the aid of this government vehicle scrap policy, the development of the automotive industry is in full-fledge.

In this article, we’ll explore all about the government vehicle scrap policy.

What Does The Government Vehicle Scrap Policy States?

The vehicle scrappage policy will assist in identifying automobiles that are unfit for use on public roads. As the name implies, under the new scrappage policy, outdated and unfit automobiles that pollute the environment and do other harm will be destroyed. As soon as the car registration period is over, the policy will start.

The car will go through a fitness test after a predetermined amount of time. A car is only regarded as suitable for 15 years, according to national motor vehicle laws. When a car is above 15 years old, it starts to pollute the environment more than a brand-new car. When they fail the fitness test, commercial and passenger vehicles older than 15 years will be immediately scrapped.

Categorization of Vehicles

There are several vehicles driving at a time on Indian highways. Due to variety, there has to be different policies for different vehicles. So, when it comes to executing the government vehicle scrap policy, categorization of automobiles is necessary.

  • Commercial vehicles

Commercial vehicles include all automobiles used for business, including buses and other transport vehicles. The car must pass a fitness test after 15 years. If the vehicle is unfit, it will be scrapped in accordance with the guidelines of the government vehicle scrap policy.

  • Government vehicles

The central and state governments’ vehicles that are more than 15 years old shall be scrap.

  • Private vehicles

Private automobiles are currently in frequent use by most of the people to commuting from one location to another. If the private vehicles are unfit or fail to renew the RC after 15-20 years, they have to be de-register. However starting 15 years after the vehicle’s initial registration date, higher re-registration fees shall be as a disincentive.

  • Vintage Vehicles

Vintage vehicles are much older than the cars today. The vintage cars, however, are properly kept and driven less frequently. Although, many of them are just for the sake of showing-off. Overall, it is a distinct category, and the guidelines for discarding such cars will take into account the characteristics of such vehicles.

Benefits of Government Vehicle Scrap Policy for the Owners

The new scrappage policy’s main goal is to identify such defective automobiles and carefully recycle them. The policy’s ultimate goal is to reduce environmental pollution brought on by these cars.

The progress of the nation depends on the unsuitable vehicles that produce pollution. In addition to reducing emissions, this strategy on automobile scrapping has other advantages. This implies that it will make it possible to recycle materials like steel, plastic, and other metals. Moreover, the cost of production will go down. It is anticipated that the car sale would grow now that the policy is in effect.

Also read: The Ultimate Guide to Car Scrap Metal Recycling

Most significantly, with the proper implementation of the policy, recycling the old automobile will result in receiving incentives for purchasing a new vehicle.

Let’s now discuss the benefits of the policy to vehicle owners:

  1. Scrap value 4-6%

The owners can make up to 4-6% of the total price of the vehicle if you scrap it. This amount may adjust further in buying your new vehicle. Thus, if you willingly scrap your vehicle you’ll get some value or else it will entail no value.

  1. Tax rebate

If in case your tax liabilities are exceeding then giving your vehicle for scrap under government vehicle scrap policy will help in tax rebate.

  1. Discount on brand-new vehicle

Since, you follow the scrap policy. You may attain discounts on purchase of a new car.

  1. No registration fees

If you provide the scrap certificate while purchasing a new vehicle. Further, you don’t have to pay registration fees for the same.


According to the government vehicle scrap policy, RTO will examine the papers and advise on next measures. The data will reflect in the RTO database making it more effective for owners to access government schemes for automobiles. If you’re looking to gather more information about government vehicle scrap policy then please contact us.

Open chat
Hello 👋
How can we help you?