In a landmark move to reduce vehicular pollution and promote eco-friendly practices, the Ministry of Road Transport and Highways (MoRTH) introduced the Vehicle Scrappage Policy, 2021. This policy aims to encourage vehicle owners to scrap old, unfit, and polluting vehicles through various incentives and regulatory frameworks.
Under the new policy, MoRTH has issued several key notifications. Notably, GSR 720 (E) dated October 5, 2021, offers a Motor Vehicle Tax concession of up to 25% for non-transport vehicles and up to 15% for transport vehicles purchased with a ‘Certificate of Deposit’. Additionally, GSR 714(E) dated October 4, 2021, waives the registration certificate fee for vehicles registered against a ‘Certificate of Deposit’.
The Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021, outlined in GSR 653(E) dated September 23, 2021, provide guidelines for establishing Registered Vehicle Scrapping Facilities (RVSFs). These facilities are mandated to ensure the environmentally sound disposal of hazardous parts from scrapped vehicles, following the Central Pollution Control Board (CPCB) guidelines and AIS-129 standards.
Further stipulations include an annual regulatory and compliance audit, as well as an audit of the mass flow statement of the RVSF, to be conducted by agencies specified under rule 126 of the Central Motor Vehicles Rules, 1989. CPCB’s guidelines for environmentally sound facilities for handling and scrapping End-of-Life vehicles were published in March 2023.
In a related development, the Ministry of Environment, Forest and Climate Change notified the End-of-Life Vehicles (Management) Rules, 2024, via S.O. 367 (E) dated January 30, 2024. These rules establish a framework of Extended Producer Responsibility (EPR), making producers, including importers, responsible for scrapping End-of-Life vehicles at RVSFs.
The policy aims to integrate the unorganized scrapping sector with the formal ecosystem. Out of the 62 RVSFs established so far, 22 have been set up by former informal scrappers, marking significant progress in formalizing the industry.
Union Minister for Road Transport and Highways, Nitin Gadkari, highlighted these developments in a written reply to the Lok Sabha today, emphasizing the policy’s role in reducing pollution through a scientific and environmentally friendly scrapping process.
