PM Modi launches Vehicle Scrappage Policy: Complete Details, Benefits and Clauses

Prime Minister Narendra Modi launched the Vehicle Scrappage Policy whereas just about addressing the Gujarat Investor Summit on Friday.

PM Modi mentioned the policy will help phase out unfit and polluting vehicles in an environment-friendly manner throughout the video handle. He mentioned automobiles won’t simply be scrapped by their age but in addition if they’re discovered to be unfit in automated testing.

“The launch of Vehicle Scrappage Policy today is a significant milestone in India’s development journey. Vehicle scrapping will help phase out unfit and polluting vehicles in an environment-friendly manner. Our aim is to create a viable circular economy and bring value for all stakeholders while being environmentally responsible,” PM Modi mentioned.

Read | Benefits of Vehicle Scrappage Policy


As the title suggests, the coverage will assist in phasing out outdated, unfit automobiles. The scrappage coverage will come into impact instantly after the registration interval of a car is over; it will then need to bear a compulsory health take a look at. As per motorized vehicle legal guidelines within the nation, a passenger car has a lifetime of 15 years and business automobiles have a lifespan of a decade. Vehicles plying on the roads past these durations are thought of to pollute the surroundings at a larger tempo in comparison with newer automobiles. They are more likely to characteristic outdated know-how, making them unsafe for utilization on roads. The automobiles additionally client extra gas in comparison with newer automobiles. The coverage will assist people dump their outdated automobiles systematically and even provide incentives.

Also Read | Rules for setting up Registered Vehicle Scrapping Facility and process for scrapping

It is a vital coverage as older automobiles pollute the surroundings 10-12 instances greater than match automobiles. There are roughly 51 lakh gentle motor automobiles which might be older than 20 years and 34 lakh gentle motor automobiles which might be older than 15 years. In addition, round 17 lakh medium and heavy business automobiles are older than 15 years with out a legitimate health certificates, in response to Union minister Nitin Gadkari.


The goal of the Vehicle Scrappage Policy is just to section out and recycle outdated automobiles by means of a scientific course of. The final purpose of the coverage is to scale back environmental air pollution brought on by outdated automobiles which have surpassed their lifecycle and run with out a legitimate health certificates. At the time of saying the coverage throughout the Union Budget 2021, Finance Minister Nirmala Sitharaman mentioned the scrapping of outdated automobiles would lead to extra advantages than simply decreasing air air pollution. Recycling outdated automobiles will assist in reusing key supplies like metal, plastic and copper. This will lead to decreasing the price of manufacturing. The coverage additionally goals to supply a lift to car gross sales within the nation, given the incentives provided for purchasing a brand new automotive.

Also Read | Vehicle scrapping policy will be ‘win-win’ policy; to reduce pollution: Nitin Gadkari


No, not all automobiles which have run past 15 years — within the case of non-public automobiles — and 10 years — within the case of business automobiles — will probably be scrapped. After completion of the boundaries, automobiles must bear a compulsory health take a look at, which might decide whether it is match to run or not. If the car fails a health take a look at, it won’t get a renewal certificates and won’t be able to ply on roads. If a car passes the health take a look at, it can get a renewal certificates and must bear a health take a look at each 5 years. At any level when the car fails the health take a look at, the automotive will turn into ineligible to run on the roads because the proprietor won’t get a renewed registration certificates.

Also Read | Vehicle Scrappage Policy update: Here is how you can retain your old car


As talked about earlier, the health take a look at will decide if an outdated automotive is match to run past its technical lifespan. Simply put, a health take a look at is detailed examination that can decide the roadworthiness of a car. It may also verify whether or not the car is inflicting larger degree of environmental air pollution. But that’s not all. As a part of the health take a look at, an outdated automotive may also need to bear a sequence of security examinations together with braking, engine efficiency and different checks. All health checks will probably be carried out at automated health take a look at centres, that are believed to make the method additional stringent. For occasion, even when the car has misaligned headlamps or if the headlamps will not be highly effective sufficient, the pc will give it a ‘fail’.


If a car fails the health take a look at, it is going to be deemed ‘EOLV’ or End of Life Vehicle. Simply put, the proprietor will probably be given an choice to scrap the car at RVSFs or Registered Vehicle Scrapping Facilities. It remains to be not clear whether or not the proprietor will get an opportunity to rectify the problems and reappear for the take a look at. But reviews recommend {that a} car will probably be eligible for the health take a look at thrice, following which the car will probably be thought of EOLV.

Also Read | Scrappage Policy update on vintage cars and bikes


Owners who scrap their outdated car and plan to purchase a brand new one will get incentives as a part of the Vehicle Scrappage Policy. A worth of the ex-showroom value of the outdated car, starting from 4 per cent to six per cent, will probably be given to the proprietor once they select to scrap the automotive. A rebate of as much as 25 per cent of street tax will probably be given to an individual when he buys a brand new private car after scrapping an outdated one; the rebate will probably be as much as 15 per cent for business automobiles. In addition, car producers have been suggested to provide a 5 per cent low cost on new car purchases to people who produce a scrapping certificates and a waiver on the registration payment.

While PM Modi launched the Vehicle Scrappage Policy at this time, the implementation will take a while. The tentative date for the implementation of the coverage is October 1, 2021. Meanwhile, scrapping of presidency and PSU automobiles above 15 years will probably be undertaken from April 1, 2022.

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