ELV Circular Economy: NITI Aayog Report on Vehicle Scrapping
Why in the news
A NITI Aayog report warns that old vehicles pile up fast, raising road safety, pollution and waste risks, though scrapping also holds untapped resources.
Key data
| Indicator | Figure |
|---|---|
| ELV stock | 23 million (2025) to ~50 million (2030) |
| Pollution | BS-I emits up to 8 times BS-VI pollutants |
| Recoverable steel | ~98 million tonnes (vehicles of 2005-2023) |
| ATS needed (2027) / working (Sept 2025) | 500 / 156 |
| Informal yards | 2-3 lakh ELVs a year |
| Formal RVSFs (FY25) | 72,000 vehicles |
Rules in place
- Fleet Modernisation Programme (2021): fitness tests for private vehicles over 20 years, commercial over 15.
- RVSF Rules, 2021: scrapping-facility framework; Certificate of Deposit.
- EPR Rules, 2025: OEM recovery targets; steel 8% for 2025-2030.
- ATS-only fitness testing from October 2024.
- SASCI: over ₹2,000 crore to States.
Challenges
- Informal scrappers dodge GST and green norms: a Dzire-class car fetches ₹38,000 informally versus ₹23,000 at an RVSF.
- Facilities cluster in a few States: Gujarat about 56 ATS; Sikkim and Arunachal negligible.
- Weak de-registration leaves ghost vehicles on VAHAN.
- RVSFs run under 20% capacity; break-even about 10 years.
- Fitness certificates issued without inspection.
Recommendations
- One ATS per district; PSU-led RVSFs in unviable regions.
- Bring informal units in via Udyam Assist, with a one-time waiver.
- Steel recovery up to 35% by 2035; exclude production scrap.
- Aadhaar-based transfers; de-registration only after a valid Certificate of Deposit.
- Carbon credits from scrapping, about ₹2,000 per vehicle.
Exam angle
- Abbreviations: ATS, RVSF, CoD, EPR, SASCI.