Lok Sabha Question No. 1147 (UNSTARRED), answered on 2026-02-05
Subject: Recycling and Scrapping of Old Vehicles
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: Shri P C Mohan

## GOVERNMENT OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## LOK SABHA UNSTARRED QUESTION NO. 1147 ANSWERED ON 5 th  FEBRUARY, 2026

## RECYCLING AND SCRAPPING OF OLD VEHICLES

1147. SHRI P C MOHAN:

Will the Minister of ROAD TRANSPORT AND HIGHWAYS

सड़क परिवहन औि िाजमार्ग मंत्री

be pleased to state:

- (a)  whether  the  Government  has  implemented  any  policy  for  the recycling and scrapping of old and unfit vehicles, including cars, twowheelers  and  commercial  vehicles,  to  reduce  pollution and  promote resource recovery;
- (b)  if  so,  the  number  of  registered  vehicle  scrapping  and  recycling centres  established  so  far  across  the  country  including  Karnataka, particularly in Bengaluru;
- (c) whether any incentives are being offered to individuals or companies  for  scrapping  old  vehicles  and  purchasing  new  fuelefficient or electric vehicles, if so, the details thereof;
- (d) the estimated environmental and economic benefits expected from large-scale vehicle recycling and scrapping; and
- (e)  the  future  plans  of  the  Government  to  develop  vehicle  scrapping and recycling as an organised industry with strong participation from the private and MSME sector?

## ANSWER

## THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS

(SHRI NITIN JAIRAM GADKARI)

- (a) The  Government  has  formulated  the  Voluntary  Vehicle  Fleet Modernisation  Programme  (VVMP)  to  address  concerns  on  vehicular pollution and envisages voluntary scrapping of old and unfit commercial and personal vehicles.

Under VVMP, a network of Registered Vehicle Scrapping Facilities (RVSFs) is being established for environment friendly scrapping/disposal of vehicles. In order to facilitate establishment of these  facilities,  the  Government  has  notified  the  Motor  Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 vide GSR 653 (E) dated 23.09.2021 (further amended vide GSR 695(E) dated 13.09.2022, GSR 212(E) dated 15.03.2024 and GSR 700(E) dated 19.09.2025).

- (b)    As of 02.02.2026, there are 129 RVSFs operational in the country. The State of Karnataka has 2 operational RVSFs, out of which 1 is in Bengaluru.
- (c)    The following incentives are provided to citizens for scrapping of their vehicles at RVSF: -
- (i)    GSR  714  (E)  dated  04.10.2021  provides  that,  in  case  the vehicle is registered on submission of 'Certificate of Deposit', the fee for issue of certificate of registration shall not be levied.
- (ii)  GSR 720 (E) dated 05.10.2021 provides for concession in the motor  vehicle  tax  (upto  twenty-five  per  cent.,  in  case  of  nontransport vehicles and upto fifteen per cent, in case of transport vehicles) for the vehicle registered against submission of "Certificate  of  deposit".   Provided  that  this  concession  shall  be available upto eight years, in case of transport vehicles, and upto fifteen years, in case of non-transport vehicles.
- (iii)  GSR 200 (E) dated 26.03.2025 provides for concession in the motor vehicle tax of up to fifty percent against such certificate for all transport and non-transport vehicles which are manufactured  as  per  Mass  Emission  Standards  Bharat  Stage  I (BS-I)  norms  and  earlier  Mass  Emission  Standard  norms  and  all medium  and  heavy  goods  motor  vehicles  and  all  medium  and heavy passenger motor vehicles which are manufactured as per Mass Emission Standards Bharat Stage II (BS-II) norms.
- (d)    The following environmental and economic benefits are achieved through large scale vehicle recycling and scrapping: -
- (i)      Scrapping  of  unfit/old  vehicles  is  done  in  an  environment friendly  manner by RVSFs in compliance with guidelines issued by the government.
- (ii)     Promotion  of  circular  economy  as  scrapping  of  vehicles boosts  availability  of  low-cost  raw  materials  (such  as  steel, copper, aluminium, rubber, etc.) for automotive, steel and electronics industry.
- (iii) Scrapping of vehicles encourages  replacement  of  old vehicles with new fuel-efficient and cleaner alternatives including EVs and hybrid models. New vehicles also comply with better  emission  norms  (BS-VI)  and  are  thus  less  polluting  than those complying with older emission norms.

(e)    As per rule 5 of the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021, the RVSF may be owned and operated  by  any  legal  entity,  be  it  a  person,  firm,  society,  Company (including recyclers for ship breaking and recycling, plastic recycling and others) or trust established in accordance with law. Any interested  investor  including  Micro,  Small  and  Medium  Enterprises (MSMEs) complying with the eligibility requirements as stated in these rules can setup an RVSF after receiving a Registration Certificate from the respective State/UT Government. As of 02.02.2026, there are 129 operational RVSFs which are established by private entities (including MSMEs).

- *****