The Rajasthan state cabinet on Tuesday gave its official nod to the Rajasthan Vehicle Scrapping Policy, 2025. This significant move is designed to systematically phase out vehicles that are over 15 years old, deemed unfit, or are major contributors to pollution. The policy mandates that these vehicles be disposed of using scientific, safe, and environmentally sound methods.
Key Benefits and Mandatory Rules
Deputy Chief Minister Premchand Bairwa outlined the core provisions of the policy. Government vehicles older than 15 years will be mandatorily scrapped. For private vehicle owners, the scheme is currently optional, allowing them to voluntarily surrender their old vehicles. However, officials indicate the long-term plan is to introduce compulsory scrapping for private vehicles in a phased manner.
The major incentive for participation is a financial rebate. Owners who purchase a new vehicle after scrapping their old one will be eligible for a rebate on motor vehicle tax. This rebate can be up to 50% of the tax amount, with a maximum cap of ₹1 lakh. "We want to encourage citizens to move towards cleaner, safer vehicles," stated Bairwa, highlighting the policy's dual focus on environment and road safety.
Digital Process and Infrastructure Development
The policy envisions setting up a network of Registered Vehicle Scrapping Facilities (RVSFs) across the state. To ensure transparency and prevent illegal reuse, the entire scrapping process will be digitized and integrated with the national vehicle portal. Owners will receive a digital certificate upon scrapping, which will be necessary to claim the tax benefit.
For traceability, registered scrappers will be required to preserve the chassis numbers cut from scrapped vehicles for six months. Subsequently, these will be handed over to district transport offices, where they will be retained for an additional 18 months.
Boosting Investment and Supporting Startups
To spur investment in the vehicle recycling ecosystem, the policy rolls out a suite of incentives for entrepreneurs. The first 20 scrapping units established will be eligible for capital subsidies. Additional benefits include tax concessions, interest subsidies, and relief on stamp duty and electricity charges.
Furthermore, start-ups operating in the recycling and scrapping sector will receive added support under the existing Rajasthan start-up policy, fostering innovation and job creation in this new green industry.
