India's Vehicle Scrappage Policy (2021) introduced significant financial benefits, tax rebates, and incentives for owners who choose to phase out their aging vehicles in the proper, lawful manner. If you have a 10+, 15+, or 20-year-old car or bike, the policy now rewards you for scrapping instead of continuing costly repairs or facing penalties.
This guide explains all incentives, how to claim them, who qualifies, and what to expect during the scrapping process, including how authorized facilities (like the ones Mariinox works with) help make the process easier.
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These incentives are tied to scrapping through an authorized RVSF, not local kabadi dealers.
Old, unfit vehicles are major contributors to:
You qualify if:
The key requirement is that the vehicle must be scrapped only at an authorized RVSF.
Claiming scrappage benefits under India’s Vehicle Scrappage Policy is simple, but only if you follow the correct steps and use an authorized scrapping facility. Below is a clear breakdown of everything you need to do-from preparing documents to receiving rebates on your new vehicle.
Begin by handing over your old vehicle to a certified Registered Vehicle Scrapping Facility. Only authorized centers can legally scrap your vehicle and issue the documents required for benefits.
Prepare these items in advance:
The facility will verify the chassis number, engine number, and overall condition. This ensures the vehicle matches official records.
Your compensation depends on:
Once approved for scrapping, you will get the COD (certificate of deposit)-the most important document. This is what gives you access to the incentives under the Vehicle Scrappage Policy.
The RVSF uploads scrapping details to the VAHAN portal. Your vehicle is officially marked as “Scrapped,” ensuring you have no future legal liability.
After dismantling, you’ll get the CVS, the final confirmation that your vehicle has been destroyed in compliance with government norms.
With your COD, you can now claim:
These benefits are available nationwide, regardless of where you scrap.
Get a free, no-obligation quote and see how much your old vehicle is really worth - without the stress of selling.
Scrapping an old vehicle may provide financial benefits, including an eligible motor vehicle tax concession or registration-fee waiver when purchasing a replacement vehicle. However, these benefits are subject to state implementation, vehicle eligibility and the applicable rules. Manufacturer discounts and scrap payments also depend on their respective terms and market conditions.
Before making a decision, verify the facility’s authorisation, understand the payment terms and check which incentives apply to your replacement vehicle. Mariinox helps owners navigate the process through its network of Registered Vehicle Scrapping Facilities. The facility processing your vehicle handles the prescribed documentation and issues the applicable certificates.
No-The Certificate of Deposit is essential.
No. Most follow the central guideline, but some offer additional rebates.
Yes. COD is valid nationwide.
No, you must submit COD during new vehicle registration.
COD is valid for 3 years.
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