RTO Rules for Scrapping Vehicle: Vehicle Scrapping Policy

The Prime Minister of India Shri Narendra Modi in an investor submit unveiled a new Vehicle Scrappage Policy which will be a game changer for the green growth target as per the commitment made by India to the Global Community.

Now, you might ask how this policy is connected to Green Development, but it is not only connected to green development, it is connected to almost every sector in India.

The reason behind this is simple, an old vehicle is a big liability for the state as this emits a high amount of greenhouse gases into the environment.

Also, the vehicle owner owning an old vehicle would not purchase a new vehicle hence, not contributing to the GDP of the country.

With the new Vehicle Scrapping Policy, the Government has addressed both these issues by scrapping the old vehicle.

The owner of the old vehicle would need a new vehicle hence this policy also incentivizes the owner by offering numerous benefits which we will discuss in detail in this article.

But, let’s understand what is the new Vehicle Scrappage Policy.

What is the New Vehicle Scrappage Policy or Aim of the Voluntary Vehicle Fleet Modernization Program (V-VMP)?

Officially called Voluntary Vehicle Fleet Modernization Program (V-VMP), the new vehicle Scrappage Policy is aimed at creating an ecosystem such that it removes all the unfit vehicles from Indian Roads.

This is done by introducing various Incentives and disincentives for owning a new vehicle or old vehicle respectively. The following is the detailed new Vehicle Scrappage policy explained-

  • In this policy, the government aims to reduce more than 1Cr vehicles that are unfit to drive to be scrapped
  • Improving road safety and environmental health is prioritized in this policy
  • Improve Fuel Efficiency and reduce the vehicle maintenance cost
  • Formalize the Vehicle scrapping sector in India
  • Boost the auto sector, steal the industry sector along with other sectors by creating a circular economic demand for a new vehicle
  • Promoting the adoption of Electric vehicles in India and improving the EV infrastructure in the country
  • Reducing pollution and other harmful emissions

Here is what Our Prime Minister has to say about the Voluntary Vehicle Fleet Modernization Program (V-VMP)

“Voluntary Vehicle Fleet Modernisation Program is a significant step towards modern mobility with green growth. It will create a robust ecosystem for safer roads and a structured scrappage sector. “
-Shri Narendra Modi, Prime Minister of India

Here is what Union Minister of Road Transport and Highways has to say about the new vehicle scrapping policy

VVMP is a transformative step to introduce a regime of fitter automobiles on Indian roads. The policy is a perfect blend of incentives and disincentives, directly making the roads safer and the air cleaner.
 -Shri Nitin Gadkari Union Minister of Road Transport and Highways

To understand the vehicle Scrap policy of India, we should focus on the entire ecosystem of the scrapping industry to ensure we understand the inside out of this policy.

The ecosystem involves various steps like scrapping an old vehicle, getting a vehicle scrapping certificate, and purchasing a new vehicle.

Scrapping Old Vehicle

After a defined period, the vehicle becomes unfit for the roads which are 15 years for a Petrol vehicle and 10 years for a diesel vehicle.

After this period the validity of the registration becomes void however, the owner may renew his RC and extend it to at max 5 years. The 5-year extension is also provided under certain restrictions like passing a fitness test to reduce the impact of an old car.

If you have a vehicle that falls under this category then you’ll have to get your vehicle scrapped and receive a vehicle scrapping certificate.

Getting A Vehicle Scrapping Certificate

Getting a Vehicle Scrapping Certificate is important as this helps you claim various incentives provided by the Government while purchasing a new vehicle.

You can get your vehicle scrapping certificate from a government-authorized scrap dealer. You’ll have to visit the dealer with your car and submit your vehicle details along with the form.

After reviewing the form, you’ll be provided with a quotation for your vehicle scrappage and documentation will be prepared for you If you agree.

You can negotiate a good deal from the dealer and receive the money in your bank account along with the Vehicle Scrapping Certificate.

Purchasing A New Vehicle

At the time of purchasing a new vehicle, you can show this certificate and claim attractive offers and discounts for purchasing the new vehicle.

List of authorized vehicle scrapping facilities in Delhi

The following are the list of authorized Vehicle Scrapping Facility in Delhi-

Mahindra MSTC Recycling Pvt Ltd

Address- 6th floor, Mahindra Tower, 2A, Bhikaji Cama Place, New Delhi, 110066

Pineview Technology Pvt Ltd

Address- C-260, Mayapuri Industrial Area Phase-II, New Delhi 110064

Ph. No- 9873345301, 9999996351

[email protected]

Bharat Motors

Address- 10/4, 1st floor, block D-1, Rewari Line, Industrial Area Phase-II, Mayapuri, Delhi-110064

Ph. No- 8368132192, 8976083364

Bharat Vehicle Scrap

Address-F-107, Best Star Mall DDA Complex, Sector-24, Rohini, Delhi 110085

Ph. No- 9711544438


What are the RTO Rules for Scrapping two-wheeler in India?

According to the new Vehicle Scrapping Policy, you’ll have to scrap your vehicle after the completion of 20 years for the two-wheelers. After 20 years, the motor insurance validity of your vehicle is also expired and you’ll not be able to get your insurance.

How long does the Vehicle Scrapping certificate be valid?

The vehicle scrapping certificate does not come with validity, as soon as your purchase a new vehicle by claiming discounts and other offers by showing the certificate, your scrapping certificate will become invalid.

What are the RTO rules for scrapping a vehicle in Maharashtra?

Private cars over 20 years old and commercial cars over 15 years old will be scrapped in a voluntary form. However, after the set time limit, no insurance or registration is valid for the vehicle, hence, the only option left is to sell it in scrap.