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ELV Circular Economy: NITI Aayog Report on Vehicle Scrapping

30 January 20261 min read
ENVIRONMENT & ECOLOGYELV CircularEconomy: NITIAayog Report onVehicle Scrapping30 January 2026safalsetu.com

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

IndicatorFigure
ELV stock23 million (2025) to ~50 million (2030)
PollutionBS-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 yards2-3 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.

Test yourself

1. NITI Aayog's report on ELVs says India's end-of-life vehicles may reach about how many by 2030?

The ELV stock may rise from 23 million in 2025 to nearly 50 million.

2. Under the ELV framework, what document must be valid before a vehicle can be de-registered, as NITI Aayog recommends?

The report recommends de-registration only after a valid Certificate of Deposit.

3. How many Automated Testing Stations were operating in September 2025, against 500 needed by 2027?

The report lists 156 operational ATS as of September 2025.