RTO stands for Regional Transport Office or Road Transport Office is the local authority of the region responsible for providing services related to all transport-related operations in India.
It is a government authority and is headed by the Union Minister of Road Transport and Highways of India which is currently headed by Shri Nitin Gadkari.
To fight climate change and to curb the lowering demand of the vehicle market in India, the Indian Government released a vehicle scrapping policy that aims at scrapping all the old passenger vehicles.
The policy will provide incentives to the users who will phase out their old vehicles in scrap. The old vehicle is very harmful to the environment especially when the engines are not following the BS6 (Bharat Stage Emission Standards 6) standards.
In addition to this, this policy also aims to tap into the 6 billion Dollar scarp market in India and generate 50,000 jobs every year.
Not only this but scarp vehicles will be recycled and will be used by the industry to produce various things thereby reducing the need to extract more metal from the earth.
This policy will create an entire ecosystem that will fuel the development as well as looks at the sustainability of the environment in a greater/ greener light.
But despite all these benefits, the biggest challenge here is to motivate people to make this transaction and contribute towards this initiative of the government.
So, here in this article, we will briefly discuss the Vehicle Scrapping Policy, what is Voluntary Vehicle Fleet Modernization Program (V-VMP) is, and how you can take benefit from this policy.
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What is Voluntary Vehicle Fleet Modernization Program (V-VMP)?
Voluntary Vehicle Fleet Modernization Program (V-VMP) is the official name of the new vehicle scrapping policy and as the name suggests is aim at making people scrap vehicles voluntarily.
India is a developing nation and people have very limited resources hence, asking people to make the transaction for goodwill is not a bright Idea.
Therefore, the government of India back the policy with incentives and benefits which helps the people to make this transaction.
What are the incentives provided by the Government under the Voluntary Vehicle Fleet Modernization Program?
The following is the incentive provided by the Government under the Voluntary Vehicle Fleet Modernization Program-
- The scrap value of the new vehicle will be 5-6% of the total value of the ex-showroom price of the new vehicle.
- In addition to this, the Vehicle manufacturers are asked by the Government to provide at least a 5% discount against the Vehicle Scrapping Certificate.
- State Government will further provide road tax rebates of up to 25% on Passenger vehicles, and 15% on commercial vehicles.
- The policy also has a proposal of waiving the registration fee of the new vehicle against the Vehicle Scrapping Certificate.
With these incentives, the price of the new car will be at a very good discounted amount which enables you to purchase the vehicle at a good deal. Here, we have calculated the cost of purchasing a new vehicle to provide a good example-
- Old Vehicle Scrapping Price (Maruti Suzuki WagonR Rs.4.5 Lakhs) = 5% of the ex-showroom price, so the minimum price offered for the scrap is Rs.22000/-
- 5% discount offered on new vehicle purchase (Tata Punch Rs.7.3 Lakhs) = Rs.36,500/-
- State Government tax rebate= 25% for a passenger vehicle. The road tax on the purchase of Tata Punch is Rs.51,892/- therefore 25% of Rs.58,543/- is Rs. 14,635/-
The total cost of the purchase of Tata Punch (7.3 Lakhs ex-showroom car) pre calculation= Rs.8.2 Lakhs
Now the total relief provided to the individual for scrapping the vehicle (Maruti Suzuki WagonR) = Rs. 73,000/- approx. therefore, the total cost of the vehicle is 7.47 Lakhs.
How to Get a Vehicle Scrapping Certificate?
Whenever you are scrapping your vehicle, you need to get the Vehicle Scrapping Certificate against your vehicle. When you receive the certificate, it confirms the destruction of the vehicle and the recycling of the vehicle.
You can follow these steps to get your Vehicle Scrapping certificate-
- The very first step to scrap the vehicle is to visit the nearest scrap dealer or government-authorized scrap dealer and get your vehicle inspected
- They will provide you the estimate of your vehicle followed by providing you documentation that you’ll have to fill
- If you are using the service of a local scrap dealer, you’ll have to fill out the form and deposit it with your nearest RTO however, if you are using an authorized service dealer’s service, then you will be assisted in this step
- Now, after that, you’ll also have to deposit the vehicle’s RC, Chassis Number plant (Cut out of your vehicle before scrapping) and submit it to the RTO along with the letter
- Upon verifying the details, RTO will deregister your vehicle and you’ll be issued the Vehicle Scrapping Certificate
List of Authorized Vehicle Scrapping Facilities in Delhi?
The following is the list of authorized vehicle scrapping facilities in Delhi-
Mahindra MSTC Recycling Pvt Ltd
Address- 6th floor, Mahindra Tower, 2A, Bhikaji Cama Place, New Delhi, 110066
Pineview Technology Pvt Ltd
Address- C-260, Mayapuri Industrial Area Phase-II, New Delhi 110064
Ph. No- 9873345301, 9999996351
Address- 10/4, 1st floor, block D-1, Rewari Line, Industrial Area Phase-II, Mayapuri, Delhi-110064
Ph. No- 8368132192, 8976083364
Bharat Vehicle Scrap
Address-F-107, Best Star Mall DDA Complex, Sector-24, Rohini, Delhi 110085
Ph. No- 9711544438
You can scrap your vehicle anytime, however, the registration of the vehicle is valid only for 15 years for petrol and 10 years of the diesel vehicle. As soon as the registration of the vehicle becomes invalid, it is illegal for your vehicle to run on the road.
You can extend the registration of the vehicle by 5 years only if the vehicle is deemed fit by the RTO. But after this extension, the vehicle becomes invalid permanently and must have compulsory scrapping.
The vehicle scrapping certificate does not have validity, you can use this certificate to purchase a new car and avail of good discounts on the new purchase.
Yes, a scrapping certificate will be provided for the accidental car but, it is important to ensure that the engine chassis number is intact and is not broken. The engine chassis number is printed on the vehicle chassis and you’ll find it under the hood of the car.