Vehicle Scrappage Policy Explained: Everything You Need To Know About Upgrading Your Old Car.

India's Vehicle Scrappage Policy is a way for you to upgrade an old car while enjoying the benefits of a cleaner environment.

What Is the Vehicle Scrappage Policy?

The policy was introduced in 2021 to slowly block out and dispose of old motor vehicles that would pollute. Fitness tests are required for private motor vehicles that are over 20 years old. Commercial vehicles, on the other hand, are supposed to be tested after 15 years. In case any vehicle fails, it must be scrapped.

Benefits Available for Vehicle Owners

Scrap Value: When an old vehicle is scrapped, the owner will get around 4 to 6% of the new vehicle's ex-showroom price.

Tax Rebates: An off-road tax of up to 25% is allowed for personal vehicles and 15% for commercial vehicles.

Registration Fee Waiver: No registration fee will be applicable when purchasing a new vehicle.

Manufacturer's Discount: Automakers may offer a 5% discount on new vehicles against a scrapping certificate.

Environmental and Economic Impact

Apart from pollution, environmental protection enhances the recycling of raw materials like steel and plastic. The policy is stated to take an investment of around ? 10,000 crore and give employment to 35,000 people.

Infrastructure Development

Currently, India has 117 Registered Vehicle Scrapping Facilities (RVSFs), with plans for 50 to 70 more to be set up in the next 4 to 5 years.

Undoubtedly, upgrading your old car under this policy will benefit you financially and help put some green in India.