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New Car Scrap Policy

New Delhi: Union Minister for Transport on Thursday, announced the long-awaited vehicle scrappage policy in the Lok Sabha. According to the minister, rules for fitness tests and scrapping centres are to be applicable from October 1, 2021. But the scrapping of government and PSU vehicles which are older than 15 years are to come into effect from April 1, 2022.

The mandatory fitness testing for heavy commercial vehicles is to be in force from April 1, 2023, and the same will be in place in a phased manner for other categories from June 1, 2024.

In case of failure to get a fitness certificate, commercial vehicles will be de-registered after 15 years. Private vehicles will be de-registered after 20 years if found unfit or in case of failure to renew registration certificates, the Minister said. A vehicle failing the fitness test or failing to get a renewal of its registration certificate is to be declared as ‘End of Life Vehicle’, Gadkari added.

On the financial incentives side, the scrap value for the old vehicle to be given by the scrapping centre will be approximately 4%-6% of ex-showroom price of a new vehicle, the Minister said. He also advised OEMs to provide a 5% discount on the purchase of a new vehicle against the scrapping certificate.There are many online aggregator like which is helping customers to connect them with scrap dealers and helping them in getting better price. Trying to organise, cluttered and highly unorganised scrap business in India. Furthermore, the state governments are advised to offer a road tax rebate of up to 25% for personal vehicles and up to 15% for commercial vehicles.