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How is Domestic Vehicle Scrapping in India Beneficial for the Nation

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The future of Vehicle Scrapping in India looks promising from where we look. The New Vehicle Scrappage Policy is a boon that has its fair share of benefits. It will not only uplift the auto sector but also provide incentives to citizens of India and protect the environment. There are so many positives on the table, and hence the government looks forward to creating a feasible circular economy, amongst other things.

It is no secret that Vehicle Scrapping in India was unorganized for a long time. The auto industry was going through a downfall, and the emission from unfit scrap vehicles added to the problems. So, to curb environmental pollution and help the auto industry, the government has introduced a funded car scrapping policy. Narendra Modi, the PM of the nation, has even urged start-ups and young entrepreneurs to join this program. 

First, we would like to put some basic facts forward. Later, we will briefly talk about how Vehicle Scrapping in India will benefit the nation.

FAQs – New Vehicle Scrappage Policy

Q: How is your car evaluated for scrapping in India?

A: A couple of reasons are as follows – Expiry of your car’s Registration Certificate. Failure to meet the minimum emission requirement. Failure in the fitness test. For such reasons, your car will be considered a scrap vehicle.

Q: Will your scrap vehicle be mandatorily scrapped over and above the provided time limit?

A: Well, the scheme of Vehicle Scrapping in India is voluntary and not mandatory. However, the catch is that if your scrap vehicle fails the fitness test, your registration will not be renewed. It implies that you will not be able to run it on the road.

Q: What is the best option to deal with a Scrap Vehicle if it fails the fitness test?

A: Since you won’t be able to ride your scrap vehicle, the best option would be to sell it to car scrap yard owners. Based on the condition of your old car, you will get money in return. You will also get a rebate on road tax, discount on purchasing a new car with other added incentives.

Q: Will the New Vehicle Scrappage Policy really benefit the environment?

A: Yes, this is true. The first and the foremost advantage is cleaner air. Secondly, the scientific dismantling of a scrap vehicle will not pollute the soil. Thirdly, scrap car recycling will help produce more metals and reduce the dependence on natural resources. An unfit scrap vehicle will also attract hefty “Green Tax.” 

Q: Who will be involved in the scrap car recycling process?

A: The Indian government has planned to set up numerous automated test centers all across the nation. Private players have been asked to invest in the policy to speed up the process. Such RVSFs (Registered Vehicle Scrapping Facilities) will look after the scrap car recycling process. It will be all done by following the necessary environmental laws.

We hope that you have some clarity at this point. Further, let’s know about the overall benefits that New Vehicle Scrappage Policy has for the nation.

Domestic Vehicle Scrapping in India – Boon/Benefits 

Curbing Pollution

Many old scrap vehicles are still plying on Indian roads. After a scrap vehicle reaches the end of its useful life, they become obsolete and start polluting mother nature at a greater intensity. Pulling out such harmful cars off the roads will help India reduce its carbon footprint. This, in turn, will help in saving billions of dollars invested into such integral initiatives to reduce emissions. Also, such vehicles are unsafe for vulnerable pedestrians as well as passengers. 

Through appropriate scrap car recycling, the metal industry will be benefited after the long-awaited breakthrough. As per an estimate, continuous scrap car recycling will help India recover 99% of the materials. This, in turn, will lead to a 40% cost reduction of raw materials for the metal industry.

Nowadays, every authorized car scrapyard in India ensures that the scrap is recycled, keeping in mind the environmental laws and the notifications from the legal authorities. All these efforts are a small price that the citizens of India need to pay for conservation of mother nature. For a better future, pollution caused by scrap vehicles needs to be curbed. This is only possible when strict action is taken on such polluting cars. The New Vehicle Scrappage Policy is a powerful weapon that will do the needful.

Circular Economy

The New Vehicle Scrappage Policy in India has been drafted and put forth with an aim to create a circular economy. It aims to facilitate the effective recovery of key materials used in manufacturing new vehicles. These materials include components like Aluminium, Steel, Plastic, etc. By leveraging advanced scientific processes for scrap vehicle recycling, the recovered materials can be reused by different industries, including the auto manufacturing industry in India. Once there are enough authorized/registered vehicle scrapping facilities all across the nation, the cost of these key materials is likely to get lower. In the end, such efforts will help create a circular economy in India.

Employment Opportunities

Earlier, Vehicle Scrapping in India was a highly unorganized sector with a few big players dominating the market. However, the New Vehicle Scrappage Policy will turn the tables. In addition to improving road safety and reducing vehicle pollution, this policy will attract huge investments. Employment opportunities will be generated through RVSFs (Registered Vehicle Scrapping Facilities.) 

The government has already planned to set up multiple vehicle scrapping centers all across the nation. Small and medium-sized enterprises will get a fair chance to set up scrap vehicle testing centers. These centers will be set up at district levels as well. They will be well equipped to carry out safe, environment-friendly vehicle scrapping processes.

Boost in Sale of New Vehicles

By getting rid of unfit scrap vehicles, greater space for new cars will be generated. The incentive plan has also been laid to encourage vehicle owners in India to purchase a better, technologically advanced car for themselves. People who opt to say goodbye to their scrap vehicles by approaching any car scrap yard are eligible to get attractive incentives. This includes reduced road taxes, waiver on vehicle registration charges, considerable discount on the purchase of new vehicles, etc.

Such a plan will eventually boost the sales of the bruised and battered Indian auto industry. In this way, the automobile industry in India will benefit from the New Vehicle Scrappage Policy.

Boost in State’s Economy

 No doubt that the New Vehicle Scrappage Policy is the right step in the right direction. But its effective implementation will depend a lot on the states in India who will have to formulate supporting policies in the following areas – 

  • Financial incentives for scrap vehicle replacement (rebate on road taxes, fair waiver on registration charges, etc.)
  • Facilitating and supporting the development of industrial infrastructure and a suitable ecosystem for setting up fully equipped RVSFs.

The states who will adopt such policies earlier will be able to grab a higher share of investments as well as economic benefits.

To sum it up, we will say that modernity in mobility will definitely reduce the burden on travel and transportation. Additionally, it will prove to be a powerful weapon for the economic development of India.

About Scrap Yard India

Our team doesn’t just focus on extending a helping hand to scrap vehicle owners. We firmly believe in educating the citizens of India who are not much aware of the initiatives taken by the government. Such policies will not benefit a specific group of people but the entire nation through various touchpoints. 

It is often said that responsibilities make people feel burdened. However, if you become a responsible citizen, you will be rewarded. Not only that, you will make your little contribution towards mother nature, which actually means a lot. SYI aims to educate and encourage people to do their part. 

Stay tuned with Scrap Yard India for such informative articles. For inquiries relating to your scrap vehicle, contact us today and get instant guidance.

A message from SYI’s team – Reduce, Recycle, Repeat!


– Vehicle Scrapping in India 

– New Vehicle Scrappage Policy 

– Scrap Vehicle 

– Scrap Car Recycling 

– Car Scrap Yard 



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