Vehicle Scrapping Policy In India Explained
Team CARS24
Est. Reading Time:
4 mins

Vehicle Scrapping Policy In India Explained

Team CARS24

One of the few things that have been discussed in great detail about our auto industry is the vehicle scrappage policy that took a long time to get formulated and put into force but has finally been released. Across the globe, the governments have implemented various scrappage schemes in collaboration with the carmakers. India, however, has been late to the party, and it’s only now that a full-fledged scrappage scheme has been put into force.

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What is Vehicle Scrapping Policy?

In order to fight pollution, the Indian Government’s car scrappage policy targets the replacement of old vehicles with new, cleaner ones. On the expiry of the registration of any vehicle, the owner can go to a government-authorised scrapping center and surrender the vehicle.

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Benefits of Vehicle Scrapping Policy in India?

There are many benefits of vehicle scrapping. These include –

  • The biggest benefit of the vehicle scrappage policy is the reduction in pollution. Once vehicles with high emissions are taken off the road, the air pollution will come down.
  • The removal of old vehicles from the road will lead to a boost in the purchase of new vehicles.
  • As new vehicles come with many more safety features than the older ones, the user even benefits from a higher safety.
  • The vehicle scrappage centers set by the government will create huge employment opportunities.
  • The scrapping of old cars will create a lot of raw materials through recycling, thereby supporting both raw and precious metal recycling industries.

What will the owner of the old car that gets scrapped get in return for surrendering his vehicle?

One might believe that the returns from scrapping a vehicle will be pretty small as compared to the convenience and emotions that come associated with, here’s exactly what one would get for his car-

  • The scrap rate of sheet metal of the car will be predefined in the vehicle scrappage policy.
  • The market rate of usable parts of the car (Example- In case your car has 4 usable tyres, the dealer will get some money from selling in the market.)
  • In case an owner scraps his old car, they will be eligible for benefits from tax rebates and even a proposed discount of up to 15% on buying a new car.

The Society of Automobile Manufacturing (SIAM) has recommended the government to offer incentives in all possible forms to those who plan to scrap their 15-year-old vehicles. 

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How to Scrap a Car in India?

In order to make the entire process of scrapping a car hassle-free, the Government of India has joined hands with Mahindra Accelo to make sure the scrapping of vehicles is easy and efficient. Below are the steps to follow to scrap a car in India-

  • A car owner will require to go to an authorised car scrapping center who then inspects as well as evaluates the vehicle based on some pre-defined factors.
  • The car owner who wishes to scrap his will need to provide a Xerox copy of the car’s registration certificate. Using this, the scrap dealer makes sure that the vehicle is eligible to be scrapped.
  • Next, the dealer segregates the car parts into categories such as metal, rubber, and plastic.
  • After all the evaluation, the dealer quotes a price based on the value of the materials extracted for resale and reuse.
  • The working parts of the car will be sold, and the owner will be given the best possible price of them.
  • The owner will be issued a “certificate of destruction” against the vehicle.
  • The section of chassis that carries the chassis no. will be cut out and submitted to the RTO.
  • Lastly, the owner of the car is asked to take pictures of the vehicle to make sure it’s scrapped and not used illegally.

What are RTO Rules For Car Scrapping and Deregistering?

Below are some simple rules for scrapping an old car-

  • Write a letter to the RTO about your decision to scrap the vehicle.
  • Surrender the registration certificate (RC) and the chassis number by cutting the metal out of the chassis while scrapping.
  • Submit an affidavit that the car is not under loan, insurance claims, or pending case court.
  • The affidavit should even state that the car isn’t involved in any criminal activity.
  • The concerned insurance company should also be notified about the scrapping

Once the above steps have been followed, the RTO scrutinizes the submitted document and issues a no-objection certificate (NOC) from the police and the National Crime Records Bureau (NCRB). Once all the paperwork is cleared in accordance with the rules of the vehicle scrapping policy, the vehicle is deregistered by the RTO.

How is a car evaluated for scrapping in India? 

Once the registration certificate of a vehicle has expired, the car is eligible for scrapping. Also, vehicles that don’t adhere to the minimum emission requirements are eligible for scrapping. A detailed set of guidelines will be issued in the months to come.

What if you want to get your vehicle re-registered in another state?

In case your vehicle is not registered in Delhi-NCR, and you don’t want to get it scrapped, you can re-register it in another state. However, in such a case, you might end up having to pay a huge sum of money for the re-registration fee (Rs 600 to Rs 15,000). For commercial four-wheels, the re-registration fee will be increased from Rs 1,000 to Rs 20,000. Also, the registration validity will be increased for just 5 years.

Are you planning to purchase a second-hand diesel car? If so, we, at CARS24, can not only provide you with a wide range of used Ford cars to choose from but also sort out all the documentation, including the RC transfer, totally free of cost. What’s more, you can also use our free used car value calculator to find out the correct value of any car on sale in the country.

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