How can an authorised vehicle scrapping facility benefit the Indian government?

An authorised vehicle scrapping facility (AVSF) can benefit the Indian government in several ways. The following sections explain some of them.

Environmental Benefits

AVSFs help remove old and polluting end-of-life vehicles (ELVs) from the roads. Older vehicles emit high pollution and have low fuel efficiency. Thus, they lead to air pollution and carbon emissions. The Vehicle Scrappage Policy states that dumping these automobiles can improve air quality. Also, it can reduce greenhouse gas emissions. This is one of the main environmental benefits of AVSF.

Modernisation of Vehicle Fleet

Removing old vehicles from the road encourages owners to replace them with newer ones. The owners can get more fuel-efficient and environmentally friendly models. This can lead to a modernised vehicle fleet. Notably, this fleet aligns with stricter emission norms and safety standards.

Pollution Reduction

Registered vehicle scraping facilities help reduce pollution. This allows the government to prevent the implementation of strict actions like lockdowns, old-even schemes, etc. 

Reduced Traffic Congestion

Old vehicles often tend to require more frequent repairs. Also, these are less fuel-efficient. This leads to breakdowns and traffic congestion. Notably, the government can help reduce congestion and improve overall traffic flow. This is possible by incentivising vehicle owners to scrap their old vehicles.

Boost to Automotive Industry

Vehicle scrappage policies can increase demand for new vehicles. This, in return, can give a boost to the automotive industry. This can lead to increased production, sales, and job creation within the sector.

Resource Recovery

Scrapping facilities can recover valuable materials from old vehicles. The recovered materials are metals, plastics and electronics, which can be easily reused and recycled. This, therefore, reduces the need for raw material extraction. It also promotes a circular economy.

Safety Improvement

Older vehicles may lack modern safety features and technologies. Encouraging the scrapping of these vehicles can lead to a safer road environment. Notably, this road environment can be suitable for both occupants of new vehicles and pedestrians.

Revenue Generation

Registered vehicle scrapping facilities can help the Indian government generate revenue. This is possible through the scrapping process. Notably, the process involves dismantling. This helps in recycling and selling recovered materials. The government can also earn revenue via taxes and fees related to the scrapping process.

Regulatory Compliance

Scrapping facilities can ensure that vehicles are properly disposed of. This must be in compliance with environmental and safety rules. Doing so prevents illegal dumping. It also prohibits improper disposal of hazardous materials. This also reduces the negative environmental impacts.

Job Creation

Establishing and operating authorised vehicle scrapping facilities can create employment opportunities in various sectors. The sectors are dismantling, recycling, transportation and administration.

Reduced Oil Dependency

Older vehicles are often less fuel-efficient. Thus, they contribute to higher fuel consumption and greater dependence on oil imports. Scrapping these vehicles can reduce the country's oil consumption and import bills.

Public Health Improvement

The government can improve public health issues by removing older vehicles with higher emissions. This helps reduce respiratory diseases and other health issues caused by air pollution.

Promote circular economy

Authorised Vehicle Scrapping Facilities (AVSF) in India can promote the circular economy in several ways:

Material Recycling:

AVSFs are equipped to dismantle end-of-life vehicles. Subsequently, these facilities get valuable materials like metals, plastics, rubber and electronics. These materials are then reused and recycled in other industries. This lowers the need for virgin resources. It also minimises environmental impact.

Resource Conservation:

AVSFs conserve natural resources by salvaging and recycling materials from scrapped vehicles. This lowers the demand for raw materials like iron ore and petroleum. These materials are used to produce new vehicles and automotive parts.

Energy Savings:

Recycling materials through RVSFs consumes significantly less energy than extracting. It also requires energy-less processing and manufacturing of virgin materials. These energy savings lead to reduced carbon emissions. They also help in mitigating climate change.

Innovation and Technology:

AVSFs encourage developing and implementing innovative technologies for dismantling and recycling. This includes techniques for efficient material separation, waste reduction, and pollution control. This, thereby, fosters technological advancement.

Closed-Loop Systems:

RVSFs can facilitate closed-loop systems. In this, materials from end-of-life vehicles are reused to manufacture new vehicles or other products. This approach minimises waste. Also, it enhances the sustainability of supply chains.

Reduced Landfill Waste:

The proper dismantling and recycling of vehicles at AVSFs reduce the amount of waste sent to landfills. It also lowers the amount of improperly disposed of automobiles. This helps in promoting responsible waste management practices.

Extended Product Lifecycles:

By recovering functional parts from scrapped vehicles, AVSFs can extend the lifecycles of these components. This is possible by reintroducing them into the market as used parts. This can reduce the demand for new parts. It can also encourage repair and maintenance, further promoting circular economy principles.

Consumer Awareness:

AVSFs can raise consumer awareness about the importance of responsible end-of-life vehicle management and recycling. This can lead to more conscious consumption choices> It can also lead to a greater demand for sustainably produced vehicles.

Policy and Regulation:

The establishment and regulation of RVSFs require the government to create certain policies. These policies must support circular economy principles and encourage environmentally sound practices within the automotive industry.

Collaboration and Partnerships:

AVSFs often collaborate with various stakeholders. The stakeholders are manufacturers, recyclers, research institutions and government agencies. These collaborations support knowledge exchange, research and the development (R&D) of best practices. These can help in circular economy implementation.


To maximise these circular economy benefits, AVSFs must operate as per stringent environmental standards and regulations. The Indian government can play an important role. The GOI can provide the necessary regulatory framework and incentives. It can also support RVSFs operating effectively and contributing to the circular economy.

To make the most of these benefits, the Indian government introduced a well-designed and well-structured vehicle scrapping policy. The policy includes incentives for vehicle owners to participate voluntarily. It also has guidelines for environmentally responsible dismantling and recycling. The policy also encourages collaboration with relevant stakeholders. The list of stakeholders includes the automotive industry, scrapping facilities and regulatory authorities.

Diksha Khiatani

A writer by day and a reader at night. Emerging from an Engineering background, Diksha has completed her M. Tech in Computer Science field. Being passionate about writing, she started her career as a Writer. She finds it interesting and always grabs time to research and write about Environmental laws and compliances. With extensive knowledge on content writing, she has been delivering high-quality write-ups. Besides, you will often find her with a novel and a cuppa!

Have any questions?

+91 73050 48930

Looking for a complete Environmental Licensing and compliance solution.