Vehicle Scrappage Policy in India Explained

India's Vehicle Scrappage Policy, formally announced in 2021, aims to phase out old, unfit, and polluting vehicles from the roads. Under this policy, personal vehicles older than 20 years and commercial vehicles older than 15 years must pass a mandatory fitness test at authorized Automated Fitness Testing Stations (AFTS). Vehicles that fail the test must be scrapped at registered vehicle scrapping facilities (RVSFs). The policy also offers incentives to encourage voluntary scrapping of old vehicles.

Key Age Limits Under the Policy

The scrappage policy defines different age thresholds for personal and commercial vehicles. These ages are calculated from the date of initial registration. After reaching the threshold, the vehicle must pass a mandatory automated fitness test to continue plying. The ages are not arbitrary — they reflect the typical lifespan after which vehicles become significantly more polluting and less safe.

• Personal vehicles (private cars, two-wheelers): 20 years from registration
• Commercial vehicles (trucks, buses, taxis): 15 years from registration
• Government vehicles: 15 years (being implemented first as a model)
• Vintage/classic vehicles may have exemptions under state-specific rules

Automated Fitness Testing Stations (AFTS)

AFTS are modern testing facilities that evaluate vehicles on multiple parameters using computerized equipment — eliminating human bias from the fitness assessment. Tests cover emissions, braking efficiency, headlight alignment, steering play, noise levels, and structural integrity. The results are generated automatically and cannot be manipulated.

The government has been establishing AFTS across the country, with the first ones operational in states like Uttar Pradesh, Madhya Pradesh, and Maharashtra. Eventually, all fitness testing will shift to these automated centers, replacing the current manual inspection system.

Incentives for Scrapping

The government offers several incentives to encourage vehicle owners to scrap old vehicles voluntarily. These are designed to offset the financial impact and make scrapping attractive compared to keeping an aging vehicle on the road.

• Certificate of Deposit: Tradeable certificate worth 4-6% of new vehicle's ex-showroom price
• Road tax rebate: Up to 25% rebate on road tax for new vehicle (private), 15% for commercial
• Registration fee waiver: For the new vehicle purchased as replacement
• Scrap value: Salvage value of old vehicle's metals and components
• Some manufacturers offer additional exchange bonuses for scrap certificates

What Happens at a Registered Vehicle Scrapping Facility

RVSFs are authorized centers that dismantle end-of-life vehicles in an environmentally compliant manner. They drain all fluids, remove hazardous materials (batteries, airbags, refrigerants), and separate recyclable metals and components. The facility issues a Certificate of Deposit (CoD) to the vehicle owner, which provides financial incentives when purchasing a new vehicle.

Fitness Test and Scrapping Costs

Important Tips

• Check your vehicle's age by looking at the date of registration on the RC
• If your vehicle is nearing the age threshold, start planning for the fitness test
• Maintain your vehicle well — a well-maintained old vehicle can pass the fitness test
• Research the incentives available before deciding to scrap — the CoD can be valuable
• Check for AFTS locations in your state on the MoRTH website

Frequently Asked Questions

Conclusion

The vehicle scrappage policy is designed to improve road safety, reduce pollution, and stimulate the auto industry. While it may seem like a burden for owners of older vehicles, the incentive structure makes the transition financially viable. Plan ahead, maintain your vehicle, and take advantage of the scrapping incentives when the time comes.