Scrappage Policy Approved in India


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350Z

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A welcome move for the Indian auto industry. Govt. has approved vehicle scrappage policy for old and unfit vehicles. This initiative is expected to bring investment of Rs.10,000 crores and create 35,000+ job opportunities.

Scrappage Policy Highlights:
  • This policy will be in effect from April 2022 for government owned vehicles and allied entities.
  • However, for commercial and passenger vehicles it'll begin from April 2023 and June 2024 respectively.
  • Vintage car owners need not be concerned as they’re exempted and separate guidelines will be formulated for them.
  • Passenger Vehicles (20+ Years) and Commercial Vehicles (15+ Years) will be “seized and destroyed” upon failing the fitness test.
Scrappage Policy Incentives:
  • Discount of upto 5% by manufacturers on new vehicle.
  • Scrap value of old vehicle around 4-6% of its Ex.Showroom price.
  • Waiver on registration charges on the of purchase of a new vehicle.
  • Rebate on road-tax of new vehicle upto 25% for private vehicles and 15% for commercial vehicles.
Tata Motors has already announced setting up of a scrapping facility in Ahmedabad which will annually recycle upto 36,000 vehicles.

Press Release:
Tata Motors, India’s largest commercial vehicle manufacturer, has entered into a Memorandum of Understanding (MoU), as a part of the Investment Promotion Activity, with the Government of Gujarat, through the Ports and Transport Department, to support setting up a Registered Vehicle Scrapping Facility (RVSF) in Ahmedabad, for end-of-life passenger and commercial vehicles. The scrappage centre will have the capacity of recycling up to 36,000 vehicles a year. The MoU was signed at the Investor Summit in Gandhinagar, Gujarat, in presence of Hon'ble Minister of Road Transport and Highways, Government of India, Mr. Nitin Gadkari, Hon'ble Chief Minister of Gujarat, Mr. Vijay Rupani, and other delegates from Government of Gujarat and Government of India.

Ports and Transport Department will support in facilitating the necessary approvals as per the rules and regulations of the State Government of Gujarat and the draft vehicle scrappage policy released by the Ministry of Road Transport and Highways (MoRTH) for setting up of the RVSF. It will address the intent of all stakeholders with benefits such as low import bill for scrap and crude oil, job opportunities for MSMEs, the possibility of upside in new vehicle sales for OEMs, low operation cost for vehicle owners, safer and cleaner vehicles for consumers and a sustainable environment for all. Tata Motors will set up the scrapping centre in association with a partner.

Commenting on the partnership, Mr. Girish Wagh, Executive Director & President – Commercial Vehicle Business Unit, Tata Motors, said, “We are delighted to support this initiative through a partner for the setting up of the scrapping facility (RVSF) in Ahmedabad. It is indeed a historic step for Tata Motors as the company announces its participation in the vehicle scrapping space. Appropriate scrapping of end-of-life vehicles will have sustained benefits for the ecosystem stakeholders and the environment alike. The scrappage policy by the MoRTH is a welcome move and a step in the right direction to promote safer and cleaner vehicles in India, and it is a crucial step in building a circular economy. As a responsible corporate, Tata Motors is committed to a sustainable future and look forward to support this initiative through this association with the Government of Gujarat.”
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Nairrk

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MoRTH announces rules for registered vehicle scrapping systems and automated test stations


The Ministry of Road Transport and Highways has announced procedures for the establishment of a registered vehicle scrapping facility (RVSF) in accordance with the regulations for motor vehicles (registration and functions of the vehicle scrapping facility). These standards apply to all car collection points, car dismantling, scrapping and recycling companies and recyclers of all types of car waste. The Voluntary Vehicle Fleet Modernization Program (VVMP), or auto scrapping policy, was launched by Prime Minister Narendra Modi at the Gujarat Investor Summit last month. Under the directive, the government intends to set up 450 to 500 Automated Test Stations (ATS) and around 60 to 70 Registered Vehicle Scrapping Facilities (RVSF) across the country.

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Thread Starter #4

350Z

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Maruti Suzuki Toyotsu India (Joint Venture between Maruti Suzuki and Toyota Tsusho Group) has inaugurated its first government approved vehicle scrapping & recycling unit in Noida.

It can scrap 24,000 vehicles per annum and is setup with a cost of over Rs.44 crores. MSTI aims to open more such facilities across India depending on the demand.

More details including the procedure is available on their official website. The facility address is: A-06, Sector-80, Phase-2, Noida, Uttar Pradesh, 201305.

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Thread Starter #5

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Tata Motors has signed MoU with Government of Maharashtra to setup a Registered Vehicle Scrapping Facility (RVSF) in the state. It'll have the capacity to recycle upto 35,000 vehicles a year.

The scrapping centre will be setup in association with a partner. Tata had earlier signed a MoU with the Govt. of Gujarat for RVSF in Ahmedabad and intends to support more initiatives for vehicle scrappage policy.

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Thread Starter #6

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Cero (Mahindra MSTC Recycling Pvt. Ltd.) has signed MoU with Govt. of Maharashtra to setup scrapping facilities with planned annual capacity of 40,000 vehicles.

In addition to current recycling centres at Pune, Cero to operate four more scrapping facilities in Maharashtra at Mumbai, Nagpur, Aurangabad and Nashik.

Presently, Cero operates in 11 locations including Greater Noida, Chennai, Pune, Bangalore, Mumbai, Ahmedabad, Jaipur, Chandigarh, Indore, Hyderabad and Kolkata.

Scrap-Car-Padmini.jpg

Press Release:
Government of Maharashtra through the Industries, Energy and Labour Department has signed an MoU with Cero (Mahindra MSTC Recycling Pvt. Ltd.), India’s 1st government authorized vehicle recycler to set up additional world class vehicle scrapping centres in Maharashtra. The proposed scrappage centres will have the capacity of recycling end-of-life 2/ 3- wheelers, passenger/commercial vehicles in accordance with all the legal and environmental norms prescribed by CPCB and guidelines provided by MoRTH.

The MoU was signed in the presence of Hon. Minister for Road, Transport & Highways (MoRTH) Shri. Nitin Gadkari, who has been the driving force behind announcement of a much awaited ‘Vehicle scrappage policy’ in India. Currently in Maharashtra, Cero already has a state-of-the-art recycling facility at Pune and is looking to set up 4 additional facilities in the cities of Mumbai, Nagpur, Aurangabad and Nashik.

The MoU was signed on the background of the Conference on Investment Opportunities in Highway, Transport and Logistics held in Mumbai, Maharashtra. The Industries, Energy and Labour Department will facilitate the necessary approvals as per the rules and regulations of the State Government and the draft vehicle scrappage policy released by MoRTH for setting up of the RVSF. Cero’s recycling centres will provide a hassle-free option for customers to scrap their vehicles. All you have to do is give a missed call on 1800-267-6000 or log on to cerorecycling.com and register an enquiry. From there on, the entire process will be handled by the Cero team.

Speaking on the MoU, Sumit Issar, Managing Director of Mahindra Accelo said, “We are delighted to sign an MoU with Government of Maharashtra and would like to acknowledge the proactive efforts being taken by the Government. Cero aims to create a network of world-class facilities across Maharashtra and India. Our centres will provide a platform for customers to scrap their vehicles in environment friendly manner and avail the benefits on purchase of newer vehicles which will be linked to Certificate of deposit – to be provided by Cero. From sustainability point of view, through recycling of old vehicle, we aim to reduce India’s dependence on Steel scrap imports and conservation of natural resources which go into production of steel.”
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Thread Starter #7

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Honda Cars India has signed an agreement with Maruti Suzuki Toyotsu India Private Limited (MSTI) to offer its customers, an end-to-end solution for scrapping their End of Life Vehicles (ELVs).

Under this scheme, Honda Car India dealerships in association with MSTI will offer their customers:
  • Vehicle Evaluation
  • Arrange Quote For Vehicle Scrappage Value
  • Provide End-To-End Services: Vehicle Pick-up, Transportation, and Dismantling
  • Issue Certificate of Deposit / Destruction from MSTI
The Certificate of Deposit / Destruction will enable customers claim eligible benefits under Vehicle Scrappage Policy notified by Government of India and adopted by various State Governments.

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