The New Vehicle Scrappage Policy has been implemented to reduce pollution by removing old vehicles from the roads and encouraging the purchase of new, environmentally friendly vehicles.

Policy Details:

  • Incentives:
    • For personal vehicles, owners can receive up to a 25% discount on vehicle price or road tax after selling their old vehicles for scrap.
    • For commercial vehicles, the discount is set at 15%.
  • Participating States:
    • Multiple states, including Bihar, Madhya Pradesh, Uttar Pradesh, Haryana, Karnataka, Maharashtra, Gujarat, Punjab, and Kerala, have adopted these incentives to phase out old and environmentally harmful vehicles.

Fitness Testing & Rules:

  • Testing Requirements:
    • Commercial vehicles older than 15 years and passenger vehicles older than 20 years must undergo fitness and emission tests to determine roadworthiness.
    • Automated testing stations and scrapping facilities will be introduced in phases.
  • Vehicle Age Rules:
    • Motorcycles: Seven-year or 120,000 km lifespan.
    • Light Commercial Vehicles (LCVs): Six and a half years or 150,000 km lifespan.
    • Heavy Commercial Vehicles (HCVs): 10 years or 400,000 km lifespan.
    • Other vehicles have a maximum age limit of 15 years, beyond which they must be scrapped.


Current Implementation Status:

  • Since the policy was introduced in 2021, about 70,000 old vehicles (many owned by government agencies) have been voluntarily scrapped.
  • In Delhi, vehicles older than 10 years (diesel) and 15 years (petrol) are automatically deregistered and scrapped, following the state’s strict regulations.


State-Level Incentives:

  • Karnataka:
    • Fixed discount on road tax based on vehicle price.
    • Vehicles costing over Rs. 20 lakh receive Rs. 50,000 off.


  • Uttarakhand:
    • Offers a 25% concession or Rs. 50,000, whichever is lower, on private vehicles.
  • Puducherry:
    • Offers a 25% concession or Rs. 11,000, whichever is lower.


  • Haryana:
    • Provides a 10% discount or 50% of scrap value for private vehicles.


Conclusion: In addition to tax incentives, vehicle owners participating in the scrappage program receive a scrap value equivalent to 4-6% of the new vehicle’s ex-showroom price. These measures aim to facilitate a smooth transition to newer, cost-effective vehicles while significantly reducing environmental impact.

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