National Automobile Scrappage Policy — Complete Overview
India's National Vehicle Scrappage Policy, announced in 2021 and progressively implemented since 2022, aims to phase out old, polluting vehicles from Indian roads. The policy uses a fitness-based approach rather than a blanket age ban — vehicles must pass automated fitness tests to continue operating. Those that fail can be voluntarily scrapped in exchange for incentives including road tax rebates, registration fee discounts, and scrap value certificates.
How the Scrappage Policy Works
The policy mandates automated fitness testing for vehicles that reach a certain age: 15 years for personal vehicles and 20 years for commercial vehicles. Vehicles must pass this test at government-authorized Automated Testing Stations (ATS) to renew their registration. Vehicles that fail the fitness test, or whose owners choose not to test them, can be scrapped at Registered Vehicle Scrapping Facilities (RVSFs) in exchange for a Certificate of Deposit and incentives.
- Personal vehicles: fitness test after 15 years from registration
- Commercial vehicles: fitness test after 20 years
- Testing at Automated Testing Stations (ATS) — not manual inspection
- Vehicles that fail fitness test cannot renew registration
- Voluntary scrapping available at Registered Vehicle Scrapping Facilities
- Certificate of Deposit issued for scrapped vehicles
Incentives for Scrapping Old Vehicles
The government offers several incentives to encourage voluntary scrapping. Vehicle owners who scrap their old vehicle and buy a new one receive a road tax rebate of up to 25% (for personal vehicles) and up to 15% (for commercial vehicles). Registration fee for the new vehicle is waived. Additionally, vehicle manufacturers may offer discounts of 5% on new vehicle purchase against the scrap certificate.
- Road tax rebate: up to 25% on new personal vehicle, 15% on commercial
- Registration fee waiver for new vehicle purchased against scrap certificate
- Manufacturer discount: up to 5% on new vehicle (voluntary by OEM)
- Scrap value: 4-6% of ex-showroom price of a new equivalent vehicle
- No re-registration fee if fitness test is passed
- Green tax exemption for vehicles that pass fitness test
Impact on Old Vehicle Owners
If your vehicle is approaching 15 years (personal) or 20 years (commercial), you have options. You can get it tested at an ATS — if it passes, you can continue driving it after paying a green tax and renewal fee. If it fails, you can get it repaired and re-tested. If you choose not to test or the vehicle cannot be made roadworthy, scrapping at an RVSF gives you the certificate and incentives for buying a new vehicle.
The government has clarified that no vehicle will be forcibly scrapped — the policy is fitness-based, not age-based. A well-maintained 20-year-old car that passes the automated fitness test can continue operating legally.
Scrappage Policy Key Numbers
| Parameter | Personal Vehicle | Commercial Vehicle |
|---|---|---|
| Fitness test age | After 15 years | After 20 years |
| Road tax rebate (new vehicle) | Up to 25% | Up to 15% |
| Registration fee (new vehicle) | Waived | Waived |
| Scrap value | 4-6% of new equivalent price | 4-6% of new equivalent price |
| Green tax (if fitness passed) | 10-25% of road tax | 10-25% of road tax |
| Re-registration fee (fitness passed) | ₹5,000 | ₹12,500-15,000 |
Key Takeaways
- The scrappage policy is fitness-based, not a blanket age ban — pass the test and keep driving
- Personal vehicles face automated fitness testing after 15 years of registration
- Scrapping incentives include up to 25% road tax rebate and registration fee waiver on new vehicle
- Automated Testing Stations (ATS) are being set up across India for standardized fitness checks
- No vehicle will be forcibly scrapped — owners have the choice to repair, test, or voluntarily scrap
Frequently Asked Questions
Will my 15-year-old car be forcibly taken away?
No. The policy requires a fitness test after 15 years for personal vehicles. If your car passes the automated test, you can continue driving it by paying a green tax and renewal fee. Only vehicles that fail the test and cannot be repaired need to be scrapped.
Where are the Automated Testing Stations?
ATS facilities are being set up in phases across India. As of 2025, several states including Uttar Pradesh, Gujarat, and Maharashtra have operational ATS centres. The MoRTH portal lists authorized testing stations by state. The number is expected to grow significantly in the coming years.
What documents do I need for scrapping my vehicle?
You need the original RC, insurance papers (if any), pollution certificate (if any), identity proof, and address proof. The RVSF will process the scrapping and issue a Certificate of Deposit. This certificate can be used to claim incentives when purchasing a new vehicle within 2 years.
Conclusion
India's scrappage policy takes a balanced approach — encouraging the phase-out of polluting vehicles through incentives rather than force. Vehicle owners should plan ahead as their vehicles approach the testing age, either investing in maintenance to pass the fitness test or taking advantage of scrapping incentives to upgrade to a cleaner, safer vehicle.
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