Compliance of End-of-Life Vehicles Rules in India

India’s Ministry of Environment, Forest and Climate Change (MoEF&CC) notified the Environment Protection (End-of-Life Vehicles) Rules, 2025 vide S.O. 98(E) dated 06th January 2025 for environmentally sound management of end-of-life vehicles.

The rules are based on the principle of extended producer responsibility (EPR) where producers of vehicles are given mandatory EPR targets for the scrapping of end-of-life vehicles. The rules cover all types of transport and non-transport vehicles, except agricultural tractors, agricultural trailers, combine harvesters and power tillers.

Under the said rules, producers have been mandated to fulfil the obligation of Extended Producer Responsibility for the vehicles that the producer has introduced or introduced in the domestic market, including vehicles put to self-use to ensure the specified scrapping targets.

Producers have been provided annual targets for scrapping End-of-life vehicles starting from the year 2025-26 for the vehicles put on the market 15 years ago in the case of transport vehicles and 20 years ago in the case of non-transport vehicles.

Registered Vehicle Scrapping Facilities (RVSFs) have been mandated to receive unfit vehicles or End-of-Life vehicles for scrapping and must carry out treatment, depolluting, dismantling, segregation and scrapping activities.

They are required to send all the recovered and segregated materials from End-of-Life vehicles to the registered recyclers or refurbishers, and co-processors for recycling and reuse of components or materials, in case RVSF does have a recycling or refurbishing facility.

They are further required to send all non-recyclable or non-refurbishable materials and non-utilizable hazardous materials to the Common Hazardous Waste Treatment, Storage and Disposal Facility authorised under Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016.

Designated Collection Centres by producers are required to handle the End-of-Life Vehicles in an environmentally sound manner and send them to Registered Vehicle Scrapping Facility.

Registered owner of the vehicle or bulk consumer is required to deposit the End-of-Life vehicle at any of the producer’s designated sales outlets or designated Collection Centre or Registered Vehicle Scrapping Facility within a period of one hundred and eighty days from the date the vehicle becomes the End-of-Life vehicle.

Under the rules, Central Pollution Control Board (CPCB) in case of producer and State Pollution Control Board (SPCB) in case of RVSF and bulk consumer may, after giving an opportunity of being heard, suspend or cancel their registration, in case of violation or non-compliance of any provisions of these rules. Returns in respect of obligations provided under the rules are required to be filed by the producer, bulk consumer and RVSF on the centralised online portal.

CPCB has been mandated to undertake periodic inspections and audits of the producer to ensure that such a facility is complying with the requirements under the provisions of these rules.

The Central Pollution Control Board may undertake or cause to be undertaken by an authorised agency the periodic inspection and audit of the Registered Vehicle Scrapping facility. CPCB may take necessary actions against violations or for non-fulfilment of obligations under these rules against a producer or Registered Vehicle Scrapping Facility or any other person.

Similarly, SPCB has been mandated to undertake periodic inspections and audit or cause to be inspected by an authorised agency, of the RVSF to ensure compliance with the rules.

SPCB is required to undertake periodic inspection and audit, or cause to be inspected by an authorised agency, of the Registered Vehicle Scrapping Facility to ensure the compliance of these rules and may take necessary actions against violations or for non-fulfilment of obligations under these rules against a Registered Vehicle Scrapping Facility or bulk consumer or any other person.

In case, the producer or Registered Vehicle Scrapping Facility or the bulk consumer fails to comply with the provisions relating to handling and scrapping of End-of-Life vehicles in an environmentally sound manner under these rules, are liable to pay environmental compensation for causing loss, damage or injury to environment or public health.

India’s Ministry of Road Transport and Highways (MoRTH) has formulated the Vehicle Scrapping Policy for the creation of an ecosystem to phase out older unfit and polluting vehicles.

The policy targets the scrapping of unfit and polluting vehicles strictly based on their fitness. Under this policy, a network of Registered Vehicle Scrapping Facilities (RVSFs) is envisaged across the country. As of January 2025, 84 RVSFs are operational in the country.

MoRTH notified the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 prescribe for registration of Registered Vehicle Scrapping Facility (RVSF), criteria for scrapping vehicles, scrapping procedure, audit and certifications for the functioning of RVSFs.

In addition, RVSF is required to comply with the guidelines ‘Environmentally Sound Management of End-of-Life Vehicles’ issued by CPCB.

MoRTH notified the Central Motor Vehicles (Twenty-Third Amendment) Rules, 2021 vide GSR 714 (E) dated 04.10.2021, which provides that if a buyer of a new vehicle submits a ‘Certificate of Deposit’ of an end-of-life vehicle then the Registration fee on the new vehicle will not be levied.

Further, MoRTH under the Central Motor Vehicles (Twenty-fourth Amendment) Rules, 2021 vide GSR 720 (E) dated 05.10.2021 provides for concession in the motor vehicle tax up to twenty-five per cent in case of non-transport vehicles and fifteen per cent in case of transport vehicles.

In addition, MoRTH has issued the following notifications or advisories to promote the adoption of Electric Vehicles and eco-friendly alternatives:

1. Vide S.O. 5333 (E) dated 18.10.2018 granted the exemption to the Battery-Operated Transport Vehicles and Transport Vehicles running on Ethanol and Methanol fuels from the requirements of the permit.
2. Vide GSR 525 (E) dated 2.8.2021 exempted the Battery-Operated Vehicles from the payment of fees for the purpose of issuing or renewing of registration certificate and assignment of new registration mark.
3. Vide GSR 302 (E) dated 18.4.2023 to issue All India Tourist permit for Battery Operated Vehicles without payment of any permit fee.
4. Vide GSR 749 (E) dated 7.8.2018 to issue registration mark for the Battery-Operated Vehicles to be in Yellow colour on a Green background for the transport vehicles and for all other cases, in White in colour on a Green background.

Further, the Ministry of Heavy Industries launched the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’ on 29th September 2024 for the promotion of electric mobility in the country with an outlay of Rs 10,900 crore for two years.

The scheme provides subsidies or demand incentives worth Rs.3,679 crore to e-2Ws, e-3Ws, e-ambulances, e-trucks and other emerging EVs. It will support 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.