During the launch of the Vehicle Scrappage Policy, Prime Minister Modi described it as a “crucial link between the circular economy and the waste-to-wealth campaign.” This initiative aims to promote auto recycling, vehicle recycling, and sustainable economic practices through formalized recycling channels and better resource utilization.
A circular economy focuses on reusing, recycling, refurbishing, and remanufacturing products and materials to reduce waste and carbon emissions. It integrates key concerns such as climate change, pollution, and sustainability, turning waste into wealth through innovation and responsible recycling.
What the Vehicle Scrappage Policy Proposes & Why It Matters
The policy enables the removal of 10-year-old cars and other end-of-life vehicles (ELVs) from Indian roads in an eco-friendly and legally compliant way. Instead of sending these vehicles to informal dismantlers, the policy promotes vehicle recycling through Registered Vehicle Scrapping Facilities (RVSFs) authorized by the government.
This ensures that scrap cars are processed using scientific methods, improving environmental safety while generating verified value from recovered materials. For example, almost 99% of a vehicle’s components—metals, plastics, glass, and rubber—are recyclable. Properly managed auto recycling equipment and auto recycling parts can feed back into the manufacturing ecosystem at a much lower cost, supporting the auto recycling business and industrial growth.
Moreover, this structured car scrap business in India will spur employment, attract investment, and formalize auto recycling companies across the country. It also encourages selling old cars to the government through authorized centers rather than informal dealers.
Toward a Circular & Responsible Recycling Ecosystem
To achieve a sustainable vehicle recycling framework, India must align both environmental and economic goals. The ideal approach can be summarized as:
Repair what is repairable
Refurbish what is discard-worthy
Remanufacture using recycled feedstock
Recycle debris and residual materials
This cycle forms a genuine circular economy, where waste is minimized, scrap value of a car is maximized, and recycling old cars becomes a part of sustainable development.
The 2021 Vehicle Scrappage Policy mandates that car fitness centers evaluate vehicles older than 10–15 years for roadworthiness. Unfit vehicles undergo de-registration and enter the end of life vehicle recycling stream via authorized recyclers.
Key infrastructure and regulatory components include:
Automobile dismantling facilities certified by the government
Auto recycling equipment and auto recycling parts recovery units
Car scrap dealers and authorized RVSFs for transparent processing
Safe and legal disposal of hazardous materials such as lubricants and batteries
Just as e-waste is managed by certified recyclers, the auto recycling business must follow similar formal standards for car scrap in India.
Vardhman Recycling & the Path Forward
Vardhman Recycling LLP positions itself as a one-stop destination for auto recycling and vehicle recycling in India. The company focuses on waste segregation, auto recycling parts recovery, and high-efficiency use of auto recycling equipment.
Through its flagship venture, Vahan Recycling, Vardhman leads in introducing formal end-of-life vehicle recycling practices across the country. The policy framework provides the car scrap business in India with the legal, structural, and financial foundation to scale responsibly.
By integrating with government-authorized RVSFs, Vardhman Recycling ensures that dismantling, car de-registration, and material recovery are done transparently, safely, and profitably. This approach not only enhances scrap car management but also supports a sustainable auto recycling business ecosystem — meeting both environmental and economic objectives.
Join the Future of Responsible Auto Recycling
India’s vehicle recycling revolution is here. Whether you’re exploring scrap value of a car, cars scrap prices, or the best way to sell an old car to the government, certified auto recycling companies like Vardhman Recycling and Vahan Recycling are leading the way.
Visit: 
www.reminer.in
Email: scrap@reminer.in