1002 Views
A simplified guide to India’s 2025 vehicle scrappage policy, covering key state-based incentives, owner benefits, and tips for scrapping your old vehicle for maximum returns.
Key Highlights:
The vehicle scrappage initiative transforms from a national vision into state-specific programs. Launched nationally in 2021 to phase out polluting old vehicles, the policy encourages owners to scrap end-of-life rides in exchange for financial perks, boosting on-road safety and environmental health. In 2025, amid tightening emission norms and rising fuel costs, scrappage incentives vary by state, often including road tax rebates, scrap value payouts, and waivers on penalties.
If you're searching for "vehicle scrappage policy India 2025" or "old car scrap benefits by state," this guide breaks it down simply, drawing from recent government updates and industry insights. We'll explore key policies, incentives, eligibility, and tips to make the process hassle-free, helping you decide if scrapping your 15-year-old sedan or truck makes sense.
Before diving into states, let's clarify the basics. The Central Vehicle Scrappage Policy mandates fitness tests for vehicles over 15 years (private) or 8-10 years (commercial). Failures lead to mandatory scrapping at Registered Vehicle Scrapping Facilities (RVSFs).
Owners receive a Certificate of Deposit (CoD), unlocking incentives like 4-6% of the ex-showroom price as scrap value from the OEM or dealer. Nationally, new vehicle purchases against this certificate qualify for up to a 25% road tax rebate on personal cars and 15% on commercial ones.
This ties into broader goals like reducing emissions and stimulating auto sales, with over 500,000 vehicles targeted for scrapping annually by 2026. However, implementation lags, with states customizing perks to fit local needs—some aggressive, like Haryana, others emerging, like Telangana.
As of October 2025, at least 21 states and UTs have rolled out incentives, as per recent transport ministry data. These focus on tax concessions for new buyers post-scrappage, waivers on dues, and sometimes fixed rebates. Eligibility typically requires vehicles over 15 years (private) or 8-10 years (commercial), scrapped at authorized centers, with the CoD submitted during new registration.
Here's an easy-to-scan table of key states with their "scrappage incentives by state, India, 2025"—note that general national rebates apply where states don't specify extras. The following table illustrates the same information.
State/UT | Key Policy Details & Eligibility | Incentives Available | How To Avail |
Delhi | Automatic deregistration for petrol >15 years and diesel >10 years; mandatory scrap for unfit vehicles. | No direct tax rebates; focus on pollution control. Scrap value 4-6% via OEM | Register at RTO with a fitness certificate; apply via transport.delhi.gov.in for CoD. Valid till policy extension in 2026 |
Haryana | Vehicles >15 years (private), >8 years (commercial); voluntary scrappage encouraged | 10% road tax concession or 50% of scrap value (whichever is lower) for new private vehicles; 15% for commercial vehicles. | Scrap at RVSF, get CoD, and claim during new registration at RTO. Ongoing in 2025 |
Uttarakhand | Over 15 years old; aligns with national fitness norms | 25% road tax rebate or Rs 50,000 (lower amount) for new private cars; 15% for commercial | Submit CoD at RTO for rebate; policy active through 2025-26. |
Karnataka | 15+ years; the state emphasizes eco-friendly replacements | Fixed road tax rebate based on new vehicle price (e.g., Rs 50,000 for cars > Rs 20 lakh); 15% for commercial | Available via RTO with scrap proof; incentives valid indefinitely per notifications |
Puducherry | Similar to national targets for old polluters | 25% road tax concession or Rs 11,000 (lower) for new private vehicles; 15% for commercial | Claim at transport office post-scrappage; ongoing scheme |
Telangana | Voluntary Vehicle Fleet Modernization Policy (VVMP, Oct 2024); >15 years private, >8 years transport. | Tax concessions on new same-category vehicles; full waiver on green tax/penalties if scrapped within 2 years | Scrap at RVSF, obtain CoD, and apply during new purchase; waivers till Oct 2026 |
Himachal Pradesh | Mandates scrapping for >15 years; RCs canceled preemptively | 25% discount on new non-commercial registration; up to 50% off for commercial | Tender-based scrapping centers; claim rebate at RTO with CoD; launched Oct 2025, ongoing. |
Meghalaya | The State Vehicle Scrappage Policy 2025 accepts vehicles from any state for scrapping. | Up to 25% road tax rebate for new private vehicles, 15% for commercial vehicles, and scrap value incentives via RVSF | Apply at registered facilities; CoD for rebates; policy valid till 2030 or revisions. |
Bihar, MP, UP, Maharashtra, Gujarat, Punjab, Kerala | Follow national guidelines; voluntary for >15/8 years. | A general 25% road tax rebate for new private vehicles, 15% for commercial vehicles, and some added scrap value boosts | RTO-based; submit CoD for concessions; active in 2025 with state variations. |
Navigating the process is simpler than it seems, especially with digital portals in 2025. Start by checking your vehicle's age via Parivahan.gov.in. If eligible:
Timelines: Most states offer incentives indefinitely, but waivers (e.g., Telangana) have 2-year windows. National policy runs till 2030, with states aligning.
Pros: Saves on taxes, promotes safer roads, reduces pollution (scrapped vehicles cut emissions by 20-30%), and boosts resale via CoD.
Cons: Limited RVSFs (only 100+ operational), high initial scrap costs for some, and no incentives for EVs yet in many states.
In 2025, with fuel at Rs 100/liter and stricter norms, scrappage offers real savings—potentially Rs 50,000-2 lakh per vehicle. If your old clunker fails fitness, it's a no-brainer; otherwise, weigh repair costs vs. rebates. For "best scrappage deals India 2025," check northern states like Uttarakhand. Consult your local RTO or dealer—going green never hurts the wallet this much. Stay tuned for policy tweaks; India's auto future is cleaner by the mile.
The 2025 vehicle scrappage policy offers a prime opportunity to replace aging, polluting vehicles with safer, eco-friendly models while enjoying financial perks. By understanding state-specific incentives and following an organized process, owners can maximize benefits and contribute to cleaner roads. Whether for savings or sustainability, scrapping an old vehicle today can be a smart, future-ready choice.