What Does the Government Offer for Scrapping Old Vehicles?

If your car or truck has served you for over a decade and is now costing more in repairs than it's worth, you’ve probably thought about scrapping it. But here's some good news — the Government of India is actually offering incentives and benefits for scrapping your old vehicle under its new Vehicle Scrappage Policy 2025.

At MKP Kataria, one of the trusted vehicle scrap companies in India, we’re here to explain in the simplest terms what this policy means for you, what benefits you can expect, and how to claim them properly.

What is the Vehicle Scrappage Policy 2025?

Announced by Union Minister Nitin Gadkari and implemented by the Ministry of Road Transport and Highways (MoRTH), the Vehicle Scrappage Policy aims to phase out old and unfit vehicles that pollute more and are unsafe on roads.

It covers:

• Private vehicles older than 20 years
  
  

• Commercial vehicles older than 15 years
  
  

• Government vehicles older than 15 years (from April 2023)
  
  

The goal? To reduce pollution, boost the auto and recycling sectors, and promote cleaner, fuel-efficient vehicles.

Why is the Government Promoting Vehicle Scrapping?

Let’s face it — old vehicles are a major contributor to India’s urban pollution. A pre-BS4 diesel vehicle can emit 10–12 times more pollutants than a new BS6 vehicle. As per MoRTH, over 1 crore vehicles are currently eligible for scrapping across India!

By offering benefits, the government wants to:

• Cut down vehicular emissions
  
  

• Promote safe and eco-friendly transportation
  
  

• Support the recycling ecosystem (like us at MKP Kataria!)
  
  

• Generate jobs in the vehicle dismantling industry
  
  

Government Incentives for Scrapping Old Vehicles

Now let’s come to the part you’re most curious about — what do you actually get when you scrap your old vehicle?

🪙 1. Scrap Value for Your Vehicle

You get approximately 4% to 6% of your vehicle’s ex-showroom price as scrap value.

At MKP Kataria, we evaluate your vehicle fairly and provide competitive scrap rates — because your old car still has value in its metal, tyres, batteries, and parts.

🚗 2. Road Tax Rebate

When you purchase a new vehicle after scrapping the old one, many states offer:

• Up to 25% rebate on road tax for private vehicles
  
  

• Up to 15% rebate for commercial vehicles
  
  

This depends on your state’s implementation. For example, Gujarat and Maharashtra have already adopted this rebate model.

🆓 3. Waiver on Registration Charges

You don’t need to pay registration fees for your new vehicle if it replaces a scrapped one — as long as you have a Certificate of Vehicle Scrapping from an authorised centre like ours.

💰 4. Discount on New Vehicle Purchase

Automobile manufacturers have been requested to provide 5–15% discount when a buyer submits a valid scrapping certificate. Brands like Tata Motors, Maruti Suzuki, and Mahindra are already offering such discounts.

Eligibility for Getting These Benefits

To avail these benefits, your vehicle must:

• Be older than 15 or 20 years (depending on the type)
  
  

• Fail the automated fitness test (conducted at an ATS)
  
  

• Be scrapped at a Registered Vehicle Scrapping Facility (RVSF) like MKP Kataria
  
  

• Be properly deregistered on the VAHAN portal
  
  

Note: Only vehicles scrapped at authorised RVSFs are eligible for benefits. Local kabadiwalas won’t give you the government perks.

Documents Required to Scrap and Claim Benefits

Before bringing in your vehicle, make sure you have:

• Original RC (Registration Certificate)
  
  

• Owner ID proof (Aadhar or PAN)
  
  

• Fitness certificate (if available)
  
  

• Insurance copy (optional)
  
  

• Authorisation to deregister (if under loan)
  
  

Once we scrap your vehicle, we issue a Certificate of Vehicle Scrapping within 7 working days.

How and Where to Scrap Your Vehicle

If you’re in Ahmedabad or anywhere in Gujarat, MKP Kataria is your go-to option. As one of the recognised vehicle scrap companies in India, we follow all government norms and provide:

• Free pickup facility for scrappable vehicles
  
  

• Proper dismantling and eco-friendly processing
  
  

• Real-time updates and transparent pricing
  
  

• Instant documentation and scrapping certificate
  
  

You can also visit the VAHAN portal or the official state transport site to locate nearby RVSFs.

State-Wise Support & Progress

The scrappage incentives also vary depending on your state. Here's a quick view:

Stay updated with your local RTO to know more.

Why Choose an Authorised Scrapping Company Like MKP Kataria?

We’re not just any scrapping dealer — we’re certified, professional, and environmentally responsible.

• Our process ensures zero pollution while scrapping
  
  

• We reuse, recycle and recover 95% of vehicle materials
  
  

• We provide fair market scrap value with no middlemen
  
  

• Our team assists in RTO paperwork and deregistration
  
  

• We also help customers searching for scrap vehicles for sale legally
  
  

So whether you're scrapping an old car or buying salvaged parts, we make the process simple and compliant.

Challenges with the Scrappage Scheme

Let’s be honest — while the policy is great, some hiccups remain:

• Not all states have implemented full benefits yet
  
  

• Lack of awareness in rural regions
  
  

• Informal sector still dominates in some cities
  
  

• Limited availability of Automated Testing Stations (ATS)
  
  

That said, with growing awareness and reliable partners like MKP Kataria, more vehicle owners are switching to responsible scrapping.

Conclusion

Scrapping your old vehicle isn't just about letting go of an old ride — it's about contributing to a cleaner environment, getting financial perks, and supporting India’s circular economy.

The government is offering strong incentives, and MKP Kataria is here to make the process seamless. As one of the leading vehicle scrap companies in India, we invite you to join the movement towards smarter, safer, and greener mobility.