Skip to main content
Nikita Sharma
Business News Expert
Asked a question last year

What is vehicle scrappage policy?

Where am I?

In Safejob Community you can ask and answer questions and share your experience with others!

The vehicle scrappage policy takes aim at old polluting vehicles on Indian roads and looks at confining them to the scrapyard. With resale value of vehicles beyond 15 years being extremely low, these vehicles can be sent to scrapyards with some sort of monetary compensation to owners which could ensure two benefits - incentive for owners to get rid of such vehicles and putting these polluting vehicles out to help the environment. There could, however, be other equally important benefits like such owners then going to the market for new vehicles which could boost demand, and re-using the scrap materials like steel and aluminum for manufacturing new vehicles.

Sujai Adithya
Business Development and Banking & Financial Services Expert

An average car owner rarely gets any value for his old vehicle. Moreover, according to a Central Pollution Control Board (CPCB) study, there are about nine million vehicles plying on Indian roads that are more than 15-years old and often emit 10 times more tailpipe emission than the current norms. Even though the recent BS-VI emission norms are expected to lead the greenway, this number is anticipated to reach 20 million by as early as 2025.

Scrappage is the process in which ELV (End of Life Vehicle) is disposed off. This may be done using shredders that tear them down into tiny pieces of metal which can then be recycled too. Other non-metal parts of the vehicle are then disposed off in a sustainable process.