Frequently Asked Questions
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What are the criteria for vehicle scrapping in India?
One can offer the following types of vehicles to the Authorised Scrapper for scrapping;
- Vehicles damaged because of riot, fire, accident, natural disaster or any calamity, after which the registered owner self-certifies the same as scrap.
- Vehicles not having a certificate of fitness according to Section 62 of the Act.
- Vehicles not having renewed Original Certificate of Registration according to Rule 52 of the CMVR.
- Vehicles bought by any agency, including AVSF, in an auction for scrapping the vehicles.
- Vehicles declared surplus/obsolete/beyond economical repair by the Central/State agencies of the Government and have been brought for scrapping.
- Impounded, auctioned and abandoned vehicles by any Enforcement Agency.
- Test vehicles and manufacturing reject as may be declared by the Vehicle OEM
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How is vehicle scrapping done in India?
The scrapping process involves the following steps –
- Only an Authorised Scrapper (AS) is liable to carry out the scrapping of vehicles as prescribed for all ELVs, except impounded/ abandoned vehicles.
- The authorised representative or the registered owner must submit the automobile and an application as per FORM -2 in two originals to the designated collection centre or the Authorised Scrapper for deposit/treatment.
- If the MV has no valid registration, the designated centre or the AS must verify the identity according to the VAHAN. The Scrapper must then issue a receipt through a digital platform linked to the VAHAN database.
- The AS must get the vehicles impounded by an Enforcement Agency according to the procedure duly prescribed by the State/UT.
- The AS must get the FORM-2 and the following applicable original documents from the owner:
- Original Fitness Certificate after the vehicle has been declared unfit for use, if applicable
- Original Certificate of Registration
- Authorisation from the registered owner
- Order or certificate validating the sale of the vehicle in a public auction in his favour duly signed by the person conducting the auction.
- Besides, the AS must get the self-certified copies through an authorised representative or from the owner of the following documents: -
- Crossed cheque from the owner’s bank account
- Copy of owner’s PAN Card
- Id proof of the authorised representative
- Digital photograph
- Address proof of the owner
- The Authorised Scrapper will then return the second FORM-2 duly signed to the authorised representative or the owner. The AS then must issue the Certificate of Deposit.
- The owner then gets the decided amount and subsequently hand over a receipt to the Scrapper.
- Additionally, the Authorised Scrapper is responsible for the safe custody of the cut piece of the Chassis Number for at least six months.
- Moreover, the Authorised Scrapper must retain a physical and computerised scanned copy of all documents. These documents must be digitally certified by the designated officer of the AVSF and must be produced during Inspection. The records must be maintained for a period as stated in the Company's Act (2013) and its subsequent amendments.
- Vehicles must not be scrapped until the oil, fuel, antifreeze, other fluids, gases, etc., are drained and collected in certified standard containers.
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Which Act/Rules apply to AVSF in India?
Provisions of the following Act/ Rules ads their subsequent amendments apply to Vehicle Scrapping in India: -
- The Central Motor Vehicles Rules, 1989
- The Motor Vehicle Act, 1988
- Various State and UT Motor Vehicles Rules, 1993
- Indian Penal Code, 1860
- The Ozone Depleting Substances (Regulation & Control) Rules, 2000
- The Hazardous Waste (Management, Handling and Transboundary Movement) Rules, 2008
- The Batteries (Management and Handling) Rules, 2011
- The E-waste (Management and Handling) Rules 2016
- The Plastic Waste (Management & Handling) Rules, 2011
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How is GOI promoting vehicle Scrapping?
The Government is actively offering incentives and rewards for scrapping old vehicles. Some of these are as follows -
- Zero new registration fee
- Vehicle manufacturers can offer a 5% discount for purchasing new vehicles
- States may provide up to 25% and 15% rebates on road tax for personal and commercial vehicles, respectively.
- Scrap value equivalent to 4-6% of the ex-showroom price of the vehicle
- Increased savings from fuel
- Reduced maintenance cost
Besides, the GOI takes specific steps to help discontinue the use of old vehicles in India. These are as follows -
- States can levy an additional ‘Green Tax’ for keeping old vehicles
- Increase in re-registration fee for private vehicles older than 15 years
- Automatic deregistration of unfit vehicles
- Hike in the renewal fee of fitness certification for commercial vehicles
- The Union Budget for 2023-2024 has emphasised the Vehicle Scrapping Policy by allocating adequate funds.
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What is Vehicle Scrap Policy?
Vehicle Scrappage Policy emphasises removing old and unfit vehicles from the road and eventually scrapping them. Here are some salient features of the policy -
- The policy aims to effectively and significantly lower the carbon footprint from vehicle emissions.
- The concept behind the vehicle scrap policy is to build an ecosystem that gradually removes unfit and polluting vehicles.
- Private and commercial vehicles over 20 and 15 years must undergo a fitness test. If these vehicles do not get clearance under the fitness test, these vehicles get scrapped.
Note: RVSF or AVSF can participate in government auctions based on this license. This helps them to collect the used vehicles and dismantle them. They can then sell the ferrous, non-ferrous metal scrap, plastic, used tyre glass, and other waste to Authorised recyclers and reprocessors. Based on that, our Indian Government will also benefit in terms of GST collection. The Government can reap the benefits of scrap trading by adhering to proper guidelines.