India's vehicle scrappage framework sets out how certain vehicles are tested for fitness, identified for end-of-life processing and scrapped through authorised facilities. It also connects the vehicle's registration record with its scrapping and recycling records, creating a formal process for vehicles that can no longer continue under the applicable requirements.
The framework does not prescribe one scrapping age for every vehicle. Transport and non-transport vehicles are subject to different fitness requirements, while other categories can have separate rules. Understanding which requirement applies to a vehicle is therefore the starting point for understanding when scrapping becomes relevant.
The Voluntary Vehicle-Fleet Modernization Program (V-VMP) brings several parts of the vehicle lifecycle into one regulated system. It covers vehicle fitness testing, identification of End-of-Life Vehicles (ELVs), authorised scrapping and the incentives associated with replacing a scrapped vehicle.
Entity | Role |
Ministry of Road Transport and Highways (MoRTH) | Frames the national vehicle scrappage framework |
Automated Testing Station (ATS) | Conducts prescribed fitness testing |
Registered Vehicle Scrapping Facility (RVSF) | Accepts and dismantles eligible vehicles |
VAHAN | Maintains vehicle registration and related status records |
State Transport Authority (STA) | Implements applicable registration and scrapping requirements |
The important point for an owner is that an ordinary scrap dealer is not equivalent to a Registered Vehicle Scrapping Facility (RVSF). An RVSF operates within the authorised framework and can issue the Certificate of Deposit (CD) and Certificate of Vehicle Scrapping (CVS) required under the process.
Selling an old vehicle to an informal dismantler therefore does not provide the same documented scrapping route or CD-linked benefits.
Age and fitness should not be treated as the same test. Age determines when certain vehicles become subject to mandatory fitness testing, while the fitness result determines whether the vehicle can continue under the applicable registration framework.
Vehicle type | Fitness test due after | Outcome on failure |
Private (personal) vehicles | 20 years | Re-registration denied; vehicle must be scrapped |
Commercial (transport) vehicles | 15 years | Fitness renewal denied; vehicle must be scrapped |
Government vehicles | 15 years | Deregistered and scrapped |
A private car reaching 15 years should therefore not be described simply as a vehicle that “must be scrapped”. Its registration and renewal requirements need to be considered separately under the applicable Central Motor Vehicles Rules (CMVR) and local implementation.
Thecar scrapping policy rules explain how this works for passenger vehicles.
A vehicle can also enter the End-of-Life Vehicle (ELV) process following an applicable fitness or registration outcome. Government-owned vehicles have separate scrapping requirements, including the prescribed 15-year limit for eligible government vehicles.
Scrapping runs through four recorded stages, from the fitness test to the certificate. You start the process yourself, usually after failing a fitness test or deciding not to renew. Each stage creates a record that the next stage checks, which is what makes the final certificate legally valid.
An Automated Testing Station (ATS) assesses vehicles that are required to undergo fitness testing under the applicable rules. The test evaluates prescribed roadworthiness, safety and emission parameters.
A vehicle declared unfit can enter the applicable End-of-Life Vehicle (ELV) scrapping process. However, fitness testing is not a prerequisite for every voluntary scrapping transaction.
Vehicle owners can apply online at the Vahan Voluntary Vehicle Scrapper portal, which MoRTH runs through the National Informatics Centre. The application identifies the vehicle and sends it to an authorised facility. Applying through theVSCRAP portal application keeps the scrappage record attached to the concerned registration number at every stage.
The RVSF verifies the vehicle and ownership details before accepting the vehicle. Once the vehicle is transferred to the authorised facility, the Certificate of Deposit (CD) records that transfer. The facility can then proceed with depollution and dismantling under the prescribed requirements. After dismantling, the facility removes the vehicle from active registration records.
The Certificate of Deposit (CD) can create value in two ways: the Registered Vehicle Scrapping Facility (RVSF) pays you for the scrapped vehicle, while the CD can unlock additional benefits when you purchase an eligible replacement vehicle. These benefits are governed separately, so the amount you receive from the RVSF should not be combined with future tax or manufacturer concessions.
The Registered Vehicle Scrapping Facility (RVSF) pays the agreed scrap value when you hand over the vehicle. The policy has used an indicative range of 4% to 6% of the ex-showroom price of a new vehicle as a reference for scrap value, but this is not a guaranteed payout. The actual amount depends on the vehicle and the RVSF's valuation.
Motor Vehicle Tax Concession
A valid Certificate of Deposit (CD) can make a replacement vehicle eligible for a motor vehicle tax concession. The central framework provides for up to 25% for non-transport vehicles and up to 15% for transport vehicles. The actual concession depends on the State or Union Territory (UT) rules, including any applicable monetary caps.
A replacement vehicle registered against a valid Certificate of Deposit (CD) can qualify for a registration fee waiver under the central scrappage framework. The applicable process and documentation are handled through the relevant transport authority when the replacement vehicle is registered.
Participating Original Equipment Manufacturers (OEMs) may offer an additional discount when you purchase an eligible replacement vehicle using a Certificate of Deposit (CD). The amount and conditions vary by manufacturer. Current Ministry of Road Transport and Highways (MoRTH) figures report discounts of up to 3% for participating commercial vehicle manufacturers and the lower of 1.5% or ₹20,000 for participating passenger vehicle manufacturers.
Several states add a further condition. They require the replacement vehicle to be of the same category and class as the one you scrapped, so a scrapped four wheeler cannot fund a two wheeler purchase. How you present thevehicle scrapping certificate also differs between state transport departments.
Scrapping a vehicle does not require you to immediately purchase another one. You still receive the Registered Vehicle Scrapping Facility (RVSF) payment, while the Certificate of Deposit (CD) can either be used later for an eligible replacement vehicle or transferred through the prescribed electronic process.
A Certificate of Deposit (CD) is currently valid for 3 years from its date of issue. If you do not plan to purchase a replacement vehicle yourself, you can explore transferring the certificate instead of leaving its benefits unused.
The Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Amendment Rules, 2022 introduced electronic trading of Certificates of Deposit. When a CD is transferred, the prescribed process generates a Transfer Certificate of Deposit in Form 2D for the recipient. The certificate can then be used by an eligible buyer for applicable benefits.
This can be useful for owners who scrap a vehicle but do not plan to replace it, as well as fleet operators retiring vehicles without purchasing qualifying replacements. Instead of treating the CD as part of the scrap payment, owners can consider its separate transfer value.
The value of a transferable CD depends on its remaining validity and the benefits available to the eventual buyer. Before deciding what to do, check the CD issue date, applicable State or Union Territory (UT) concessions and whether you are likely to purchase a replacement vehicle yourself.
The vehicle scrappage framework is easiest to understand when fitness, scrapping and incentives are kept separate. Reaching a particular age does not automatically mean that every vehicle must be scrapped; the applicable testing and registration rules determine what happens next. The same framework also applies when understanding the two-wheeler scrappage process, where eligibility and applicable incentives depend on the vehicle and registration rules.
For an owner choosing the scrapping route, the Registered Vehicle Scrapping Facility (RVSF) payment is only one part of the calculation. The Certificate of Deposit (CD) can provide additional value through applicable tax, registration and manufacturer benefits, either when used for a replacement vehicle or transferred through the prescribed process.
The Voluntary Vehicle-Fleet Modernization Program (V-VMP) provides a regulated framework for vehicle fitness testing, End-of-Life Vehicle (ELV) identification, authorised scrapping and recycling, along with incentives linked to eligible replacement vehicles.
Age alone should not be described as an automatic scrapping requirement for every vehicle. Under the V-VMP framework, transport vehicles generally face mandatory fitness testing at 15 years and non-transport vehicles at 20 years, subject to the applicable rules.
A vehicle declared unfit through the applicable fitness process can enter the End-of-Life Vehicle (ELV) scrapping framework. It must follow the applicable registration and scrapping requirements rather than being treated as an ordinary roadworthy vehicle.
You generally need the Registration Certificate (RC), owner identity and ownership documents, along with any additional documents required for the vehicle's circumstances. A financier's clearance may also be required where a hypothecation remains recorded.
There is no single nationwide processing time that should be presented as guaranteed. The timeline depends on vehicle verification, documentation, Registered Vehicle Scrapping Facility (RVSF) workload, dismantling and completion of the registration-cancellation process.
Yes. The Ministry of Road Transport and Highways (MoRTH) states that vehicles registered in one State can be fitness tested and scrapped at authorised facilities elsewhere in India, subject to the prescribed process and verification through VAHAN.
You can retain or electronically transfer the Certificate of Deposit (CD). The CD is currently valid for 3 years and can be transferred through the prescribed electronic trading mechanism if you do not intend to use it for your own replacement vehicle.