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ActiveCentral Sector SchemeLaunched January 2020Verified: 2026-10-12

Voluntary Vehicle Fleet Modernization Programme (Vehicle Scrappage Policy)

National policy framework under MoRTH providing financial concessions, tax waivers, and scrap value to owners who voluntarily scrap commercial vehicles older than 15 years and private vehicles older than 20 years.

Audited by Eligo Public Policy Research Desk•Official Gazette & Nodal Portal Verification•Read Verification Standards →
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Official Nodal Portal:vahan.parivahan.gov.in

Quick Eligibility Snapshot

👤 Min age 18 yrs💰 No income ceiling⚖ All genders🏛 All categories📍 All India
Government Levelcentral Government
Administering BodyMinistry of Road Transport and Highways
Beneficiary Sector
Applicable Jurisdiction
All India

₹Benefits & Entitlement Breakdown

Scrap value paid by Registered Vehicle Scrapping Facility (RVSF) approximately 4% to 6% of the ex-showroom price of a new vehicle. Motor vehicle road tax concession of up to 25% for non-transport vehicles and up to 15% for transport vehicles upon purchasing a new vehicle against a Certificate of Deposit (CD). 100% waiver of new vehicle registration fees against the Certificate of Deposit. Vehicle manufacturers are advised to provide a 5% discount on the purchase of a new vehicle.

📊Budget Allocation & Beneficiary Reach

Fiscal Budget Allocation

Rs. 10,000 Crore (Estimated economic and tax concession incentives across states)

Official Budget Document ↗
Verified Beneficiary Reach

1.5+ Lakh unfit polluting vehicles scrapped across 60+ authorized RVSFs

As of: 2026-01-31PIB / Official Citation ↗

Verified Eligibility Criteria

Age Requirement:Minimum 18 years
Annual Family Income Ceiling:No gross income ceiling specified
Target Occupations:Vehicle owners, fleet operators, truck owners, motorists
Eligible Gender:all
Social Category / Reservation:all
Specific Operational Conditions & Exclusions:

Registered owner of commercial vehicle > 15 yrs or personal vehicle > 20 yrs; clear title without pending hypothecation/challans.

📄

Required Documents Checklist

Verify readiness before applying for Voluntary Vehicle Fleet Modernization Programme (Vehicle Scrappage Policy). Check off your papers or print this list before visiting your local CSC / Cyber Cafe.

Mandatory Documents(3)

Check off as ready
💡

Keep self-attested photocopies and clear digital scans (100 KB – 200 KB, PDF/JPG format) ready to avoid portal upload timeouts.

🛡️Civic Research Desk • Rejection Prevention

Worried About Application Rejection for Voluntary Vehicle Fleet Modernization Programme (Vehicle Scrappage Policy)?

Over 30% of applications on official portals get delayed or rejected due to minor certificate authority mismatches or unseeded bank accounts. Our civic research desk compiles a verified 1-page Scheme Blueprint tailored to your state and profile.

  • ✓Valid issuing authority rules (Tehsildar/SDM)
  • ✓Aadhaar-DBT bank seeding verification
  • ✓Direct official portal guide (no middlemen)
  • ✓Email delivery in 1–2 hrs during desk hours
Civic Research Fee:₹49One-time
Get Scheme Blueprint (₹49)→

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Application Effort & Process Friction

Readiness assessment derived from official prerequisites, mandatory documentation, and submission channels.

Easy to Access (1/10)
•Hybrid process (online application + physical verification)
•3 mandatory supporting documents required

Effort scores reflect portal accessibility, mandatory document burden, and physical verification requirements.

How to Apply

🌐 Online Portal Route🏢 Physical / CSC Route
🛡️
Government Application Safety Advisory:Application for this welfare program is processed exclusively on official government infrastructure (vahan.parivahan.gov.in). Never pay registration charges or advance processing fees to unauthorized third-party agents. Central and State welfare scheme applications do not require paying private intermediaries.
  1. 1

    Owner logs on to the VAHAN National Vehicle Scrappage Portal (vahan.parivahan.gov.in/scrappage).

  2. 2

    Select nearest authorized Registered Vehicle Scrapping Facility (RVSF) and book appointment.

  3. 3

    Hand over vehicle along with original RC, pollution certificate, and identity proof.

  4. 4

    RVSF performs physical inspection, verifies chassis number, and scraps vehicle environmentally.

  5. 5

    RVSF issues a digital Certificate of Deposit (CD) and Certificate of Scrappage.

  6. 6

    Produce Certificate of Deposit at automobile showroom for tax concessions and fee waivers.

✅Before You Begin — Pre-Application Checklist

✓Ensure Aadhaar is linked with active mobile number
✓Bank account is NPCI-mapped (Aadhaar-seeded) for DBT
✓Check if you already receive a similar Central scheme benefit
✓Keep documents ready: income/caste/domicile certificates as applicable

⚠️Common Rejection Reasons — Avoid These

Incomplete documentation, false declaration of eligibility, or failure to meet statutory scheme criteria.

Official Government Application Portal

You will be redirected to the secure official portal: vahan.parivahan.gov.in

Apply on official government website
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Verified Guidance

Expert Application Tips & Practical Advice

Field-tested recommendations from administrative grievance circulars to avoid rejections and processing stalls.

1
processTo apply for Voluntary Vehicle Fleet Modernization Programme (Vehicle Scrappage Policy), initiate your application on the official portal at https://vahan.parivahan.gov.in/scrappage. Verify procedure: Owner logs on to the VAHAN National Vehicle Scrappage Portal (vahan.parivahan.gov.in/scrappage). Confirm all personal and bank details align with departmental records before final submission.
2
documentsFor Voluntary Vehicle Fleet Modernization Programme (Vehicle Scrappage Policy), keep clear and legible scanned digital copies of mandatory documents (Original Registration Certificate (RC) of Vehicle, Owner Aadhaar & PAN Card, Bank Account Passbook / Cancelled Cheque) ready in PDF or JPEG format within prescribed portal size limits before starting your application on https://vahan.parivahan.gov.in/scrappage.
3
common mistakesA frequent cause of rejection under Voluntary Vehicle Fleet Modernization Programme (Vehicle Scrappage Policy) is submitting mismatched personal details between Original Registration Certificate (RC) of Vehicle and your Aadhaar record, or providing an unseeded bank account. Verify active NPCI/DBT bank mapper linkage and valid certificate numbers on https://vahan.parivahan.gov.in/scrappage.
4
trackingAfter successfully submitting your application for Voluntary Vehicle Fleet Modernization Programme (Vehicle Scrappage Policy), securely save your permanent Application Reference Number (ARN) or digital acknowledgement receipt. Use this reference number on https://vahan.parivahan.gov.in/scrappage to track scrutiny, verification, and sanction milestones.

Frequently Asked Questions (Officially Sourced)

Verified answers sourced directly from official circulars, gazettes, and portal FAQs. Never AI-invented.

What is the Certificate of Deposit (CD)?

A digital certificate issued by an authorized RVSF upon vehicle surrender. It can be redeemed to receive motor vehicle tax concessions and registration fee waivers on a new vehicle purchase.

Source: Official Scheme FAQ ↗

Can a Certificate of Deposit be traded or sold?

Yes. The digital Certificate of Deposit is tradable on the national portal if the original scrapper does not wish to buy a new vehicle.

Source: Official Scheme FAQ ↗

What happens if an old vehicle passes the fitness test?

If an old vehicle passes the mandatory automated fitness test, it can be re-registered for a period of 5 years upon payment of statutory fitness fees.

Source: Official Scheme FAQ ↗

Who is eligible to apply for Voluntary Vehicle Fleet Modernization Programme (Vehicle Scrappage Policy)?

Eligible applicants must satisfy official government criteria for Voluntary Vehicle Fleet Modernization Programme (Vehicle Scrappage Policy). Age: min 18 years. Conditions: Registered owner of commercial vehicle > 15 yrs or personal vehicle > 20 yrs; clear title without pending hypothecation/challans..

Source: Official Scheme FAQ ↗

Can I track my Voluntary Vehicle Fleet Modernization Programme (Vehicle Scrappage Policy) application status?

Application status for Voluntary Vehicle Fleet Modernization Programme (Vehicle Scrappage Policy) can typically be tracked through the official portal at vahan.parivahan.gov.in using your Aadhaar number, application reference number, or registered mobile number. Alternatively, contact the scheme helpline or visit your nearest Common Service Centre (CSC).

What should I do if my Voluntary Vehicle Fleet Modernization Programme (Vehicle Scrappage Policy) payment is delayed or rejected?

First, verify your Aadhaar-bank account seeding status on the NPCI mapper (npci.org.in). If seeding is confirmed and payment is still pending, register a complaint on the Central Public Grievance Redressal System at pgportal.gov.in. You may also file an RTI application at rtionline.gov.in to obtain official rejection reasons within 30 days.

Is there an income tax implication for receiving Voluntary Vehicle Fleet Modernization Programme (Vehicle Scrappage Policy) benefits?

Agricultural income and certain welfare subsidies may be exempt from income tax under Section 10 of the Income Tax Act, 1961. Tax treatment varies by scheme type and beneficiary income level. Consult a certified tax practitioner or visit incometax.gov.in for scheme-specific tax guidance.

Common Rejection Reasons & Warnings

Incomplete documentation, false declaration of eligibility, or failure to meet statutory scheme criteria.

Editorial Verification & Change Log

Scheme verification and change history
DateFieldDescription / UpdateSource Citation
2026-10-18scheme_typecsOfficial Source ↗
2026-09-17initial_verificationBaseline verification of Vehicle Scrappage Policy Certificate of Deposit (CD) benefits, road tax concessions, and RVSF protocols.Official Source ↗

⚖Compare with Similar Schemes

Side-by-side eligibility, benefit, and effort comparison:

Application Window & Deadlines

Continuous / Online portal open

Scheme Intelligence

How is this calculated? ↗
Data ConfidenceFully Verified (100%)

Verified 7d ago from .gov.in source

Access FrictionEasy to Access

Apply online with minimal documents

How to Apply🔀Online & In-Person
Scale & Impact
👥1.5+ Lakh unfit polluting vehicles scrapped across 60+ authorized RVSFs (as of 2026-01-31)
₹Rs. 10,000 Crore (Estimated economic and tax concession incentives across states) budget allocation
📅Running since 2020
🔄2 verified updates — actively maintained

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📅Scheme Milestone Timeline

2026-10-18scheme_type

cs

Official Source ↗
2026-09-17initial_verification

Baseline verification of Vehicle Scrappage Policy Certificate of Deposit (CD) be...

Official Source ↗
⚡

Schemes You Can Stack With This

Complementary programs with non-conflicting eligibility that you can claim concurrently:

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)₹6,000 (annual)✓ Open to all genders · Overlapping profile match
Pradhan Mantri Awas Yojana - Urban (PMAY-U / Housing for All)₹2,50,000 (one-time)✓ Open to all genders · Overlapping profile match
Pradhan Mantri Awas Yojana - Gramin (PMAY-G)₹1,20,000 (one-time)✓ Open to all genders · Overlapping profile match
Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)₹5,00,000 (annual)✓ Open to all genders · Overlapping profile match

Official Helpline & Nodal Offices

Motor Vehicle Legislation (MVL) Division, MoRTH

Transport Bhawan, 1 Parliament Street, New Delhi 110001

Helpline: 011-23714938

Jurisdiction: National (All-India)

Notice a Discrepancy?

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Verification Metadata

Last verified by Eligo researchers on 2026-10-12 against official government documentation.

Eligo is an independent information platform unaffiliated with any government body. Always confirm latest terms directly on the official portal.