India's Vehicle Scrappage Policy — explained simply.
Everything you need to know about the government's scrappage rules, what they mean for your car, and how to make the most of the incentives available to you.
The Vehicle Scrappage Policy was notified by the Ministry of Road Transport and Highways (MoRTH) in 2021. Its core objective is to retire India's aging, high-polluting vehicle fleet in an organised, environmentally responsible way.
Does the policy apply to your vehicle?
Petrol cars — mandatory fitness test required after 15 years from date of first registration.
Diesel cars — mandatory fitness test required after 10 years.
Government vehicles — registration cannot be renewed beyond 15 years. Mandatory from April 2022.
What is a Certificate of Deposit?
The Certificate of Deposit (CD) is issued by the RVSF when your vehicle is accepted for scrapping. It is the document that unlocks every government incentive — manufacturer discount, road tax rebate, registration fee waiver — and the instrument through which RC deregistration is processed.
Why does scrapping through an RVSF matter?
An informal buyer cannot issue a Certificate of Deposit. Without it, you cannot claim any incentives — and your RC remains in your name indefinitely. Scrapping through an authorised facility is the only path to complete legal closure on your vehicle.