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Vehicle Scrappage Policy – Benefits and Process

Vehicle Scrappage PolicyAll about Govt. Mandatory Scrappage Policy ruleBenefitsProcessOverviewScrapping CentresDocumentsScrapping CertificateCustomer CareContact Details.


In the vehicle scrapping policy, a rule has been made to scrap 15-year-old petrol-diesel cars. At the same time, if a petrol or CNG car is 15 years old in the capital Delhi, it will be considered unfit to drive in NCR. While the lifespan of a diesel vehicle is 10 years…

Scrapping old vehicles has become easy in the country. Till now this sector was unorganized. Recently, Maruti Suzuki and Toyota Tsusho have started a recycling center for used vehicles in Noida. Although Mahindra started the vehicle scrapping center in the year 2018 itself. At the same time, it is expected that after the arrival of Maruti Suzuki, recycling centers will open in other cities of the country. According to Union Transport Minister Nitin Gadkari, the government plans to open three-four scrap centers in every district of the country, the government is tying up with private companies for this. Apart from Maruti and Mahindra, Tata Motors is also preparing to open a scrap center in Gujarat, in which about 36,000 vehicles will be scrapped every year. On the other hand, if you also want to give any of your car in scrap, then we are telling you what is the way to give the vehicle to the scraping center and what are the benefits you will get in return.


Step 1:- If you want to give a used vehicle for scrap, you will have to contact an authorized recycler. You can also contact by visiting the webpage of CERO or MSTI. You will have to make an appointment for this. If your vehicle is in working condition then you can directly take to scrapping center or request them for doorstep pickup but for this you will have to pay pickup charges.

Step 2:- You will have to provide the original documents of the vehicle at the recycling center. Before giving it to the scrapping center, keep the Registration Certificate (RC), Driving License, Insurance, Fitness Certificate with you. Also, before handover the vehicle, an identity card of yours will also be asked. Apart from this, even if the vehicle has any challan, bank loan, accident or any insurance claim, then you will have to complete all the legal procedures first, only then the vehicle will be recycled. Along with this, a copy will have to be submitted to the Authorized Scrap Dealer by filling in the details in Form 2, who will give a certificate as proof of transfer of ownership. The owner of the car will also have to ensure that the chassis number of the vehicle is removed before it is scrapped.

Step 3:- After completing all these paperwork your vehicle will be sent for scrapping. First of all the tires of the vehicle and if the CNG kit is installed, it will be removed. The refrigerant will then be emptied from the battery and the vehicle’s air conditioning system. The essential components/parts of the car are disassembled so that they can be used again. The vehicle will then be sent to the de-pollution station, where all types of liquid, engine oil, transmission oil, brake oil, steering oil, coolant and windshield washer fluid will be removed from the vehicle. The battery, metal, oil, coolant are destroyed according to the global environment standard so that they cannot be used again. Along with this, the fuel tank and silencer of the vehicle are also removed here.

Next comes the manual removal of the body panels and bonnet, boot lid, doors, fenders, bumpers, headlights and tail lights. This is then removed from the steering and dashboard to the seats, floor mats, roof linings and all other interior parts inside the cabin. Also the wiring harness of the car is removed. At the next station, after removing the engine, suspension and brakes from the car, it is finally time to cut off the Vehicle Identification Number (VIN) plate.

After this, the body of the car remains, which is lifted by crane and then put in the crusher. The steel from the car is sold for smelting. At the same time, body panels and parts from the vehicle are also sold. At the Recycle Center, you are assured that during the entire process, no AC gases or oils are released into the ground or air without any adverse effect on the environment.

Step 4:- Once the scrapping is complete, the recycling center will provide you with a ‘Certificate of Destruction’ which can be used at the RTO (Regional Transport Office) to de-register the vehicle. In this certificate, the information related to your vehicle like model and registration number will be written, as well as the appreciation of the scrap is also written. Your vehicle number is removed in RTO so that no one can misuse it. The scrap value of the vehicle can be paid to you online or through cheque.


On discarding the old vehicle and showing the scrapping certificate to the customers, there will be a discount of 5 percent on the ex-showroom price of the new vehicle. Whereas in some states, the registration fee will be waived off at the time of registration of the new vehicle to the customers. Under the new scrap policy, on taking a new vehicle, there will be a rebate of 25 percent in road tax for three years. After the implementation of the new policy, state governments can give up to 25 percent discount on private vehicles and up to 15 percent on commercial vehicles. At the same time, it has to be kept in mind that according to the government, transport vehicles after eight years and non-transport vehicles after 15 years will not get any exemption in motor vehicle tax. That is, if exemption is to be taken from the government under the scrappage policy, then the transport vehicle will have to be scrapped before 8 years and the non-transport vehicle before 15 years.

Scrappage Policy Rule:-

In the recently announced vehicle scrapping policy, a rule has been made to scrap 15 years old diesel car and 15 year old petrol car. On the other hand, in the capital Delhi-NCR, if a petrol or CNG car is 15 years old, it will be considered unfit to drive in NCR. Whereas the age of diesel vehicle is 10 years. However, now the fitness test of the cars will be done across the country. It will be necessary to provide fitness test certificate for car insurance. At the same time, the car which fails in this fitness test will be sent for scrap.

List of Authorized Scrappers of Motor Vehicles in Delhi-NCR.
S.No. License No. Name of Firm Address Contact E-mail Address
1 0001/2018 M/s Mahindra MSTC Recycling Pvt. Ltd. 6th Floor, Mahindra Towers, 2A, Bhicaji Cama Palace, New Delhi-110066 N/A N/A
2 0002/2020 M/s Pineview Technology Pvt. Ltd. C-260, Mayapuri Industrial Area Phase-II, New Delhi-110064 9873345301, 9999996391 [email protected]
3 0003/2020 M/s Bharat Motors 10/4, 1st Floor, Block-D1, Rewari Line, Industrial Area, Phase-II, Mayapuri, New Delhi-110064 8368132192, 8976083364 N/A
4 0004/2020 M/s Bharat Vehicle Scrap F-107, Best Star Mall DDA Complex, Pocket-7, Sector-24, Rohini, Delhi-110085 9711544438 [email protected]
M/s Maruti Suzuki Toyotsu India Pvt. Ltd. A-06, Sector-80, Phase-2, Noida, Uttar Pradesh-201305 0120-6101300 N/A

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Last modified: November 26, 2021