New scrappage policy – Since 2019, the automobile industry’s sales have been declining. And the covid-19 outbreak has made matters even more difficult. So, in order to bring back this on track, the government has implemented a new vehicle scrappage policy. Let us begin with what Nitin Gadkari revealed about car scrap policy or the vehicle scrap policy. (Nitin Gadkari vehicle scrappage policy)

car scrap policy

Old Vehicle Scrap Policy

The new scrappage policy was launched on August 13, 2021. It is government-funded initiative to replace old vehicles on Indian roads with modern and new vehicles. The policy is expected to reduce pollution, create job opportunities, and increase demand for new vehicles.

The vehicle scrappage policy, implemented by PM Modi, is a significant new scrappage policy. He urged startups and young people to join this mission of old vehicle scrap policy to combat pollution. As well as, to reduce the impact of the covid- 19 pandemic on the Indian automobile industry.

If you have a vehicle nearing end of life, then this article is important to you. If your vehicle has been running for several years, you may wish to renew it or replace the parts in order to get it back on the road. Have you considered scrapping it? Without further ado, let’s get started on the car scrap policy or the old vehicle scrap policy.

What is Vehicle Scrappage Policy all about?

According to the new scrappage policy, commercial vehicles aged above 15 years and passenger vehicles aged above 20 years will have to be mandatorily scrapped if they do not pass the fitness and emission tests. Fitness exams are required to understand the quality of the vehicle if it is still fit to run on the road and how much effect will it have on the environment. Nitin Gadkari’s vehicle scrappage policy(Nitin Gadkari vehicle scrappage policy) does not consider scrap just because of its age but considers other factors such as quality of brakes, engine performance and others. As per the motor vehicle law, renewal of fitness certificates annually is mandatory for a commercial vehicle once it is older than eight years. For the first eight years, such vehicles will need to undergo the test after every two years.

also readFitness Certificate for Commercial Vehicles, Transport Vehicle

Vehicle Fitness Certificate Online

Re-Registration of Vehicle after 15 Years

What if your vehicle doesn’t pass fitness test?

The term unfit vehicle refers to those who fail to pass a fitness test. They might have been damaged in the fire, riot, natural disaster or beyond economic repair. A vehicle that does not pass the fitness test is considered unfit from plying on the roads and their registration certificate is no more renewed. However, a single re-examination is allowed after the required repair, rectification and re-inspection- if at all allowed by the appellate authority.

If a vehicle passes the fitness test then it will have to repeat the same after every 5 years to keep a check. A valid fitness certificate will be necessary for the renewal of registration certificates after 15 years. The renewed certificate will be issued for a period of 5 years in the case of private vehicles.

Several countries including the US, Germany, Canada and China have introduced vehicle scrappage policies to boost their respective automotive industries and curtail vehicular pollution.



Large automakers are onboarding this Nitin Gadkari’s vehicle scrappage policy(Nitin Gadkari vehicle scrappage policy or the car scrap policy ) by launching scrappage centres including CERO by Mahindra & Mahindra (2018) and Maruti Suzuki Toyotsu by Maruti Suzuki and Tokoyo (2019). This policy also supports India’s ‘Green India’ mission, as it creates space for a cleaner fleet of vehicles.

Under what conditions are the vehicle liable to be scrapped?

Under the old vehicle scrap policy, your vehicle is liable to be scrapped if your car’s registration certificate is expired. Your car fails inspection/or the fitness test at one of the registered inspection centres.  Your car is irreparably damaged in a natural calamity or accident. Other than these conditions, decommissioned government vehicles and abandoned cars will also be scrapped. The scrapping of a car is completely voluntary, but a car can’t be driven on public roads if it fails inspection. So, as per Nitin Gadkari’s vehicle scrappage policy(Nitin Gadkari vehicle scrappage policy), If your vehicle fails the fitness test and is deemed unfit to be driven on public roads, it will be scrapped.

Benefits of new scrappage policy

The car scrap policy or the old vehicle scrap policy extends many obvious benefits, besides pollution control and improved road safety factors. Union Minister Mr. Nitin Gadkari has highlighted that raw materials derived from scrapped vehicles such as copper, rubber, steel, aluminium and plastic can be reused in new vehicles which can help reduce the price of new vehicles and subsequently, boost sales.

  • Manufacturers can give up to a 5% discount for buying new vehicles
  • Zero registration fee for new vehicle purchase
  • Owners can receive scrap value equivalent of 4-6% of ex- showroom price of new vehicles
  • States can give up to 25% and 15% rebates on road tax for personal and commercial vehicles, respectively.
  • Nitin Gadkari’s vehicle scrappage policy(Nitin Gadkari vehicle scrappage policy)

Disincentives for holding old vehicles

Holding on to vehicles older than 15 years will become an expensive affair for owners as the cost for renewal of fitness certificates might go up to 62 times for commercial vehicles and by 8 times for private vehicles.

In addition, states will impose a green tax over and above the road tax that every vehicle owner needs to pay.

When will the new scrappage policy come into effect?

New scrappage policy will come into effect from April 2022, starting with government owned vehicles and allied entities. After this, the Government of India will consider necessary examination for heavy commercial vehicles starting from April 2023.

Lastly, the fitness test will also include vehicles belonging to the rest of the categories, effective from June 2024.

From October 21, all government vehicles need to undergo physical testing.

Interestingly enough, the car scrap policy is already in existence in Delhi since 2018. Any diesel vehicles above 10 years and any petrol vehicles above 15 years have to be stopped.