New Delhi: The Centre provided an important update on the implementation of the Vehicle Scrapping Policy in response to a query raised by Dr. K. Laxman, Member of Parliament, in the Rajya Sabha.

On Wednesday, in his response, the Minister of Road Transport and Highways, Nitin Jairam Gadkari, outlined the framework established to phase out unfit and polluting vehicles through the Voluntary Vehicle Fleet Modernisation Program. This policy combines incentives and disincentives to encourage environmentally responsible disposal of vehicles that do not meet fitness standards.

The policy permits the voluntary scrapping of both commercial and personal vehicles, provided they pass mandatory fitness tests. To facilitate this transition, a series of regulatory notifications have been issued under the Motor Vehicles Act of 1988 and the Central Motor Vehicle Rules of 1989. Additionally, guidelines for Registered Vehicle Scrapping Facilities (RVSFs) were initially introduced via GSR 653(E) and have been amended multiple times, along with similar frameworks for Automated Testing Stations (ATSs) under GSR 652(E).

Tax concessions are now available for vehicles that hold a valid Certificate of Deposit. Different categories of transport vehicles have to undergo mandatory testing through the ATS.

Furthermore, the new policy prohibits the renewal of vehicle registrations for government-owned vehicles that are over 15 years old. A targeted tax concession of up to 50% is also offered for BS-I and BS-II standard vehicles, as detailed in GSR 200(E) dated March 26, 2025.

Minister Gadkari emphasised the government’s commitment to reducing vehicular pollution, modernising India’s vehicle fleet, and encouraging the adoption of cleaner technologies through well-structured policy mechanisms. This scrapping framework aims to enhance sustainable urban mobility while creating economic opportunities through organised recycling and testing infrastructure.