Scrappage Policy India 2025-26

Scrappage Policy India 2025-26: Rules, Incentives, Penalties & Vehicle Age Limits Explained

Introduction

India’s vehicle scrappage policy has taken center stage in 2025 as the government pushes for cleaner mobility, safer roads, and lower carbon emissions. With nearly 1 crore old and unfit vehicles still running on Indian roads, pollution levels and safety risks have risen sharply.

To address this issue, the government introduced the Vehicle Scrappage Policy, encouraging owners to scrap old, polluting vehicles and replace them with new, fuel-efficient models.

Whether you own a personal car, two-wheeler, commercial vehicle, taxi, or bus, this updated 2025 guide explains everything you need to know about rules, age limits, incentives, penalties, and how to scrap your vehicle legally.

Why the Scrappage Policy Matters

The scrappage policy is not only a government mandate, but also a shift toward cleaner, safer mobility. Here’s why it matters in 2025:

✔ Reduces pollution

Old vehicles contribute up to 10–12% of total vehicular pollution. Scrapping them cuts toxic emissions drastically.

✔ Improves road safety

Old vehicles often lack structural safety, ABS, airbags, and modern braking systems — increasing accident risks.

✔ Boosts fuel efficiency

Newer vehicles deliver better mileage, saving money in the long run.

✔ Supports the economy

Scrappage centers, recycling plants, and new vehicle sales generate jobs and investments.

✔ Reduces landfill waste

Recycling helps recover metals like steel, aluminum, and copper — lowering the burden on landfills.

In short, the policy ensures cleaner air, safer roads, and stronger economic activity.

Documents Required for Scrapping a Vehicle in 2025

To scrap a vehicle legally, you must carry:

1. Original RC (Registration Certificate)
2. Owner’s Aadhaar or PAN card
3. Passport-size photos
4. Bank account details for receiving incentives/refunds
5. Signed consent if the vehicle is financed

An authorization letter if the owner cannot be physically present

1. Insurance copy (if available)
2. PUC certificate (optional)

Once verified, the RTO and scrappage center issue two crucial documents:

1. Certificate of Vehicle Scrapping (CVS)
2. Certificate of Deposit (CoD) — needed to claim incentives and rebates on your next vehicle purchase.

Step-by-Step Process: How Vehicle Scrapping Works in India (2025)

Step 1: Find a Registered Scrappage Centre

Locate an authorized Vehicle Scrapping Facility (RVSF) in your state. Centers must be government-approved under MoRTH rules.

Step 2: Schedule a Vehicle Inspection

The scrappage center checks the vehicle’s identity, engine number, chassis number, and documents.

Step 3: Submit the Required Documents

Submit RC, ID proofs, and authorization papers.

Step 4: Vehicle Deregistration at RTO

The scrapping center initiates RC cancellation with the RTO.

The RTO checks for challans, theft records, hypothecation, or legal issues.

Step 5: Vehicle Dismantling

After approval, the center dismantles the vehicle in an eco-friendly manner — extracting reusable metals, plastics, tyres, and batteries.

Step 6: Receive Scrappage Certificates

You receive two documents:

1. Certificate of Vehicle Scrapping (CVS)
2. Certificate of Deposit (CoD) — gives discounts on new vehicle purchases

These documents are essential to claim state and central incentives.

Rules, Age Limits & Penalties Under Scrappage Policy 2025

The scrappage policy introduces clear age limits, fitness rules, and penalties for unfit vehicles.

A. Vehicle Age Limits in 2025

Personal Vehicles (Cars & Bikes)

1. Mandatory scrapping at 20 years if the vehicle fails the fitness test or emission test.
2. A vehicle can run for only 20 years if it passes the Automated Fitness Test (AFC).

Commercial Vehicles

1. Mandatory scrapping at 15 years if they fail fitness tests.
2. Fitness renewal every year after 15 years.

Government Vehicles

1. All government, PSU, and municipal vehicles over 15 years must be scrapped (no exceptions).

B. Penalties for Non-Compliance in 2025

Driving an unfit or old vehicle now has strict penalties:

1. ₹5,000 fine for driving without a fitness certificate
2. Higher road tax for older vehicles
3. Higher green tax during FC renewal
4. Seizure of the vehicle in case of extreme emission violations
5. Denial of renewal of RC for vehicles crossing age limits

Many states have also mandated:

1. No-entry zones for old diesel vehicles
2. Automatic challans for high-emission vehicles arrested by ANPR/camera systems

Incentives for Scrapping a Vehicle (2025)

The government provides attractive benefits to encourage owners to scrap old vehicles:

1. 15% Discount on New Car Purchase

Dealers must offer 15% discount on the ex-showroom price of a new vehicle (commercial: up to 20%).

2. Scrap Value (4%–6% of Ex-Showroom Price)

Paid by scrap centers based on weight and metal recovery.

3. Waived Registration Fees

New vehicle registration charges are completely waived.

4. Reduced Road Tax

States offer up to 25% rebate on road tax for new vehicles.

5.Higher Mileage & Lower Maintenance

Switching to a newer vehicle means long-term savings.

These incentives make scrapping an old vehicle financially attractive in 2025.

Common Errors & Their Solutions

Error 1: Vehicle has pending challans

Solution:

Clear challans online (Parivahan/MotoInfo) before visiting the scrappage center.

Error 2: Hypothecation not removed

If the vehicle was insured/financed, hypothecation may still show.

Solution:

Submit NOC from the bank + Form 35 to the RTO before scrapping.

Error 3: RC is lost or damaged

Solution:

Apply for a duplicate RC before initiating scrapping.

Error 4: Vehicle ownership mismatch

Documents must match the owner’s ID.

Solution:

Provide a sale affidavit, succession certificate, or legal NOC.

Error 5: RTO delays in issuing the Scrappage Certificate

Solution:

Use registered centers only; they handle the RTO process on your behalf.

Summary Table: Scrappage Policy India 2025

Conclusion

The Scrappage Policy India 2025 is a major push toward a cleaner, safer, and more efficient transport ecosystem.

For vehicle owners, this policy is not just about compliance — it’s an opportunity:

1. Save money
2. Reduce pollution
3. Improve road safety
4. Upgrade to a more efficient vehicle.

Before your vehicle reaches its age limit, check its fitness, RC status, insurance, and challans to avoid penalties or last-minute surprises.

Smart owners plan early, and scrapping responsibly makes the roads better for everyone.

FAQs

Q1. Is vehicle scrapping mandatory in India?

Yes, for 15-year-old government vehicles, and for vehicles failing fitness tests after 15/20 years.

Q2. What happens if I don’t scrap my old car?

You may face fines, denial of RC renewal, higher taxes, and even vehicle seizure.

Q3. Can I scrap a car without an RC?

You must first get a duplicate RC from the RTO.

Q4. How long does scrapping take?

1–3 working days at authorized centers.

Q5. Can I resell my old car instead of scrapping it?

Yes — unless it fails fitness tests or crosses the government age limit.