How to use the Vehicle Scrappage Policy — complete 2026 guide

By Q1 2026, India had 97 operational RVSFs across 22 states (MoRTH press note, January 2026). Around 2.4 lakh vehicles had been scrapped under the policy since launch in April 2022 — the bulk in the last 18 months after the 15-year unfit-vehicle deregistration of central and state government vehicles became compulsory in April 2023.

The Vehicle Scrappage Policy is a Central Government scheme notified through the following overlapping rules:

• Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 — set up the RVSF licence regime under §52 of MV Act.
• Motor Vehicles (Vehicle Scrapping Facility) Amendment Rules, 2022 — formalised the Certificate of Deposit (CoD) and incentives.
• Notification S.O. 3273(E) dated 25 July 2022 (MoRTH) — set the road-tax concession at 25% private / 15% commercial; OEM 5% rebate via voluntary undertakings.
• Notification S.O. 5394(E) dated 17 November 2023 — made fitness-test failure for vehicles older than the age cap (15 years private petrol in some states, 10 years diesel in NCR per NGT order) trigger automatic deregistration.

You are eligible to scrap if you own a vehicle that is:

• A private petrol / CNG / electric car/two-wheeler older than 15-20 years (state-specific cap; Karnataka and Delhi have moved to 15 years; most other states retain 20 years).
• A private diesel vehicle older than 10-15 years (Delhi-NCR per NGT order: 10 years).
• A commercial / transport vehicle older than 15 years (uniform across India under MV Rules 1989 read with §39).
• A government-owned vehicle older than 15 years — mandatory scrappage since April 2023.
• A vehicle that has failed automated fitness test at an Automated Testing Station (ATS).
• A vehicle whose RC has been cancelled / suspended for any reason and you do not wish to revive it.

You are not required to scrap if your fitness test passes — for private vehicles, fitness can be re-tested every 5 years even after the age cap (subject to state notification).

• Open https://vahan.parivahan.gov.in → “Know Your Vehicle Details” → enter RC number → check “Date of Registration”.
• Add the relevant cap (15/20 years private; 15 years commercial). If older than the cap and fitness has lapsed/failed, you're inside the scrappage window.
• If still within fitness validity, decide whether the resale market or the scrap value will give better return — for old small cars, scrap value + tax concession + OEM rebate usually wins.

• Go to https://vahan.parivahan.gov.in/vahan/scrappolicy → “List of RVSF”.
• Filter by state and city. As of April 2026, 97 RVSFs are operational — major operators include Mahindra MSTC Recycling, Maruti Suzuki Toyotsu, Tata Motors-Re.Wi.Re, CERO (MMR Group) and several state-PSU joint ventures (e.g., DEKM in Tamil Nadu, IL&FS Environmental in Maharashtra).
• Compare scrap-value offers — RVSFs publish their per-kg LME-linked rates monthly. Two-wheelers ~₹40-60/kg, small cars ~₹35-50/kg, SUVs/trucks ~₹30-45/kg of net body weight.

• On the RVSF's portal (or the Vahan scrap module) → “Book Appointment” → upload RC + Aadhaar + PAN → choose date + pickup option.
• Most RVSFs offer free or paid pickup within a 100-150 km radius (₹1,500-₹3,500 depending on distance and vehicle weight).
• If your vehicle is mobile, you can drive it to the RVSF (carry RC, valid PUC if available, last insurance copy).

• On arrival, the RVSF runs a brief inspection — odometer, identification, weight on platform scale, missing parts (engine, gearbox, catalytic converter all increase value; missing parts reduce).
• They generate a written valuation offer in your presence — accept or walk away.
• On acceptance, sign Form CRC (Certificate of Vehicle Scrapping) + a no-objection declaration.

• The RVSF cancels your RC on the Vahan portal in front of you — Form 23B “Certificate of Deposit application” auto-flows to your jurisdictional RTO.
• Within 24-72 hours, the RTO marks the RC as “Scrapped” — you can verify on vahan.parivahan.gov.in.
• Once RC is “Scrapped”, no fitness, no road tax, no insurance liability continues — important for stopping insurance auto-renewal premiums.

• The RVSF credits the scrap value to your bank account in 3-7 working days (some pay cash up to ₹10,000 if you prefer; UPI/NEFT for higher amounts).
• The Certificate of Deposit (CoD) is issued in your name with a unique 16-digit number, valid for 2 years from issue.
• The CoD is transferable once to a family member (spouse, parent, child, sibling) by writing to the RVSF + Form CD-T.

• Go to any car/two-wheeler dealer of any OEM. Tell them you have a CoD.
• They enter the CoD number on their Vahan dealer portal — system auto-applies:
  • 25% road-tax concession (private vehicle) or 15% (commercial) at registration of new vehicle.
  • 5% manufacturer discount (most OEMs — Maruti, Hyundai, Tata, Mahindra, Honda, Bajaj, TVS, Hero, Ola Electric have signed MoUs).
  • Many states add registration fee waiver (₹600-₹1,500) on top.
  • Optional ₹10,000-₹50,000 cash incentive depending on OEM and model.

• If your old vehicle had a running insurance policy, claim pro-rata premium refund by filing Form CR + scrap certificate to insurer (refund usually ₹500-₹3,000 depending on remaining months).
• Cancel the FASTag linked to the old vehicle — see Apply FASTag 2026 for the cancellation process.
• If the old vehicle had an open hypothecation (rare for 15+ year old vehicles but possible), get an NOC from financier before scrap appointment — RVSF will not scrap a hypothecated vehicle without NOC.

+----------------------------------+---------------------------------------+
| Scrap value (paid by RVSF to you)| Two-wheeler:  ₹3,000  - ₹8,000        |
|                                  | Small car:    ₹15,000 - ₹35,000       |
|                                  | Sedan/SUV:    ₹35,000 - ₹70,000       |
|                                  | LCV/Truck:    ₹50,000 - ₹2,50,000     |
|                                  | (LME-linked, varies monthly)          |
+----------------------------------+---------------------------------------+
| Certificate of Deposit (CoD)     | NIL fee. Valid 2 years.               |
| issuance                         | Transferable once to family.          |
+----------------------------------+---------------------------------------+
| Road-tax concession on NEW       | Private vehicle:    25% off           |
| vehicle (against CoD)            | Commercial vehicle: 15% off           |
|                                  | (One-time, life-time tax)             |
+----------------------------------+---------------------------------------+
| OEM (manufacturer) rebate        | 5% of ex-showroom (most OEMs)         |
|                                  | + ₹10,000 - ₹50,000 cash discount     |
|                                  | on selected models                    |
+----------------------------------+---------------------------------------+
| Registration fee waiver on new   | ₹600 - ₹1,500 (state-specific)        |
| vehicle                          |                                       |
+----------------------------------+---------------------------------------+
| Pickup / transport of old        | ₹1,500 - ₹3,500 (RVSF charge,         |
| vehicle to RVSF                  | sometimes free within 50 km)          |
+----------------------------------+---------------------------------------+
| Insurance pro-rata refund        | Depends on remaining months;          |
| after scrap                      | typically ₹500 - ₹3,000               |
+----------------------------------+---------------------------------------+
| RC cancellation (Form 23B)       | NIL fee on Vahan.                     |
+----------------------------------+---------------------------------------+
| RTI on RVSF / scrap delay        | ₹10 by IPO. BPL = free.               |
+----------------------------------+---------------------------------------+

• No RVSF in your district. Many states (especially in the North-East) still have only 1-2 RVSFs in the entire state. You either travel or pay a higher pickup charge.
• Vehicle hypothecation not closed — if your 18-year-old car still shows a financier on RC (because the bank closure NOC was never updated on Vahan), the RVSF cannot scrap. Get the closure noted on RC first via Form 35.
• Vehicle not in the name of the person at the RVSF. Owner mismatch (e.g., father is dead, son turns up) requires legal heir transfer first under Form 31.
• CoD not generating because the RVSF has not uploaded the scrapping certificate on Vahan within the 24-hour SLA. Push the RVSF; if silent, write to the State Transport Department.
• Dealer says “OEM rebate not in our system” — most OEMs run the rebate via a quarterly reimbursement. Insist on the dealer entering your CoD on the Vahan dealer portal — the road-tax discount applies even if OEM rebate is delayed.
• Road-tax concession not applied at new RC stage — happens if the dealer enters the CoD after RC has been generated. Insist on entry before registration.
• Old insurance auto-renewed because you forgot to flag the scrap — write to insurer with Form CRC + Vahan “Scrapped” status and demand cancellation + premium refund.
• Two-wheeler scrap value too low — the policy applies but two-wheelers genuinely fetch ₹3,000-₹8,000 because of light metal weight. The CoD value (road-tax concession on a new bike) is often more than the scrap cash itself.
• State has not adopted the road-tax concession — Tamil Nadu, Telangana and West Bengal were late adopters. Check your state's MV Tax notification before relying on the 25% benefit.

• Every RVSF must publish a grievance officer name + phone + email on its premises and website. Mahindra MSTC: 1800-419-1330; Maruti Toyotsu: 1800-102-2222; CERO: 1800-419-2376.
• Best for: pickup delay, payment delay, valuation dispute.

• Each State Transport Department has a Scrappage Cell since 2023. Usually reachable at scrap@<state>transport.gov.in.
• Best for: Vahan flag not updated, CoD number not generated, dealer not honouring road-tax concession.

• https://pgportal.gov.in → “Ministry of Road Transport and Highways” → “Vehicle Scrappage Policy”.
• 30-day SLA. Visibility at MoRTH level — useful for cross-state issues (CoD issued in MP, vehicle being bought in Karnataka).

• https://nssvscappolicy.parivahan.gov.in — one-stop tracking of scrappage applications. Login with mobile + Aadhaar; status visible end-to-end.

The Transport Department, MoRTH and the RVSF (only insofar as it acts as a delegated authority cancelling RCs on Vahan) come within the RTI Act 2005's reach. Note: a privately-owned RVSF is not itself a “public authority”, but the State Transport Authority is — and that's where information about your file actually sits.

RTI helps here when:

• Your CoD has not been generated despite scrapping completed weeks ago — RTI to the PIO, State Transport Authority for the file movement of CoD application.
• The 25% road-tax concession was not applied at new RC — RTI to the PIO of the RTO that registered the new vehicle asking for the basis of tax computation.
• Your old vehicle's RC is still showing “Active” on Vahan despite scrap — RTI for the date of cancellation entry + officer responsible.
• You suspect an RVSF undervalued your vehicle relative to the published LME-linked tariff — RTI to the State Transport Department for the RVSF's monthly tariff filing.
• Insurance refund denied citing “no scrap proof” — RTI to RTO for certified copy of Form 23B + Vahan cancellation log to send to insurer.

See the dedicated guide: RTI for vehicle RC / NOC / scrap delay — copy-ready template.

RTI does NOT help here when:

• You disagree with the RVSF's valuation — that's a private contract; you're free to walk to another RVSF before signing CRC.
• The OEM has not given the 5% rebate — that's a voluntary commercial offer between you, dealer, and OEM. RTI cannot enforce a private discount.
• You want a higher scrap rate than market — RTI cannot change LME prices.
• You want to scrap a vehicle that has a pending court case / theft FIR — clear the legal status first; RVSF cannot scrap a vehicle with active police hold.

Q. My car is 17 years old but still drives well — must I scrap?
Not necessarily. Take the vehicle for automated fitness test at a registered ATS. If it passes the emission, brake, suspension and CO/HC tests, you get a fresh fitness certificate (5 years for private; 1-2 years for commercial). Scrappage is voluntary unless your state has issued a deregistration order for vehicles above the age cap.

Q. I sold my old car to a scrap dealer years ago — can I still claim the CoD now?
No. The CoD is issued only by an RVSF licensed under MV Rules 2021. A street scrap dealer (kabadi) cannot issue a CoD. If your old RC is still “Active” on Vahan even after physical scrap, you have a separate problem — apply to the RTO under Form 28 for cancellation.

Q. What about diesel vehicles in Delhi-NCR? Different rule?
Yes. Per NGT Order 21 July 2016 + Supreme Court IA 345/2018, diesel vehicles older than 10 years and petrol older than 15 years are not allowed in Delhi-NCR roads. Such vehicles are auto-deregistered if not transferred out. Scrappage policy benefits apply.

Q. Can I transfer my CoD to my son who is buying a new car?
Yes — once. Family members defined as spouse, parents, children, siblings. Apply to the RVSF with Form CD-T and ID proof of transferee. The 2-year validity continues from the original date of issue (does not reset).

Q. Is the OEM rebate available on EVs / hybrids?
Yes. All OEMs that have signed scrappage MoUs (including Tata Motors, Mahindra Electric, Ola Electric, Ather, TVS, Hero) extend the 5% rebate on EVs too — usually as ex-showroom discount. EVs additionally get state EV policy incentives (Maharashtra, Delhi, Karnataka, TN have separate EV subsidies).

Q. The road-tax concession of 25% — is that on new vehicle's lifetime tax, or annual?
It is on the one-time lifetime tax that you pay at time of new RC registration. Most states levy this between 6% and 18% of ex-showroom price. A 25% concession on a ₹6 lakh car at 8% lifetime tax = ₹12,000 saved.

Q. What if my old vehicle is registered in one state and I want to scrap it in another state where I now live?
Allowed under the policy. Carry the RC and a recent address proof. The CoD is portable across India; you can use it for a new vehicle in any state.

Q. Are tractors or construction equipment covered?
Currently passenger vehicles, two/three-wheelers, light/medium/heavy commercial vehicles are covered. Tractors, harvesters, and construction equipment are notified separately under the 2024 amendment for goods carriers; agricultural tractors remain outside the policy as of April 2026 — there is a draft notification under consultation.

• RTI for vehicle RC / NOC / scrap delay — full template
• How to register a new vehicle (RC) — 2026 guide
• How to transfer vehicle ownership (RC) — 2026 guide
• How to apply for FASTag — 2026 guide
• RTI in 12 simple steps — for first-time filers
• All Indian government helplines — one master directory

Last reviewed: 26 April 2026 by RTI Wiki editorial team. Scrap valuation is LME-linked and changes monthly; RVSF list expands quarterly. Verify on vahan.parivahan.gov.in/vahan/scrappolicy or write to admin@bighelpers.in if you spot a stale figure.