India’s transport ministry has now fully rolled out the updated scrap policy India regulations in 2025. Designed to reduce pollution, phase out old vehicles, and promote a cleaner and safer environment, the new policy has brought a clear structure for the voluntary and mandatory scrapping of old cars and commercial vehicles.
This policy is part of India’s broader commitment to sustainability and aligns with the National Vehicle Scrappage Program. By offering tax concessions and rebates, the policy encourages owners to deregister their old vehicles and invest in safer, fuel-efficient alternatives.
Who Needs to Scrap Their Vehicle in 2025?
Under the scrap policy India, vehicles are eligible for scrapping if:
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Private vehicles are older than 20 years and fail the automated fitness test.
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Commercial vehicles are older than 15 years and do not pass fitness or emission norms.
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Vehicles are registered as unfit or unsafe by the RTO-authorized fitness testing stations.
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Vehicles are deregistered voluntarily by the owner for financial or environmental reasons.
RTOs across India are issuing digital scrap certificates which owners can use to avail tax benefits while purchasing new vehicles.
Key Benefits of India’s Vehicle Scrappage Policy 2025
The government has introduced several incentives for people opting into the scrap policy India this year:
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Up to 25% rebate on road tax for new vehicle purchases
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5% discount from auto manufacturers on the new vehicle’s ex-showroom price
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Full waiver on registration fees
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Value of scrap metal and parts based on vehicle weight and condition
These benefits make scrapping old vehicles a financially wise choice and help reduce India’s carbon footprint.
Step-by-Step Process to Scrap a Vehicle in India 2025
| Step | Process Description |
|---|---|
| 1 | Visit authorized scrapping center or apply online via state RTO portal |
| 2 | Submit vehicle details and documents (RC, insurance, Aadhaar) |
| 3 | Vehicle inspection and fitness check by scrapping center |
| 4 | Receive Vehicle Scrapping Certificate and deregistration notice |
| 5 | Use the certificate to claim tax and manufacturer benefits |
Only authorized vehicle scrapping facilities (RVSFs) are permitted to carry out the process, and digital records are maintained via the VAHAN portal.
How to Locate Registered Scrapping Facilities?
To comply with the scrap policy India, use these official methods:
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Visit the Ministry of Road Transport and Highways (MoRTH) site to find state-wise authorized scrapping facilities
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Call the local RTO office for updated information
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Look for government-affiliated scrap yards that issue legal scrap certificates
Using unauthorized junkyards can result in vehicle theft allegations, environmental fines, or denial of government benefits.
FAQs
Is scrapping mandatory for vehicles older than 15 years?
It is mandatory for commercial vehicles older than 15 years if they fail fitness tests. For private vehicles older than 20 years, scrapping is required if declared unfit.
Can I sell my old car instead of scrapping it?
Only if it passes a fitness test. If declared unfit, it must be deregistered under the scrap policy India.
What documents are needed for vehicle scrapping?
You’ll need the RC (Registration Certificate), valid ID proof (Aadhaar), and a copy of insurance or fitness test result.
How long does the scrapping process take?
Once applied, the vehicle inspection and certificate issuance usually take 2–5 business days.
Can I scrap my vehicle in a different state?
Yes, provided the scrapping center is authorized and connected to the VAHAN portal. Cross-state scrapping is allowed with NOC.
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