VEHICLE SCRAPPAGE POLICY AND ROAD SAFETY INITIATIVES
VEHICLE SCRAPPAGE POLICY AND ROAD SAFETY INITIATIVES
As on 30.01.2026, 129 Registered Vehicle Scrapping Facilities (RVSFs) are operational
across 21 States and UTs in the country under Vehicle Scrapping Policy. Also, a total of 4,30,306 vehicles have been scrapped by these RVSFs till 30.01.2026.
Ministry Finance, Department of Expenditure, vide letter dated 22.05.2025, has issued the scheme guidelines for Special Assistance to States for Capital Investment (SASCI) 2025-26. Incentives for ‘Scrapping of Old vehicles’ has been extended as per Part-VI A of the guidelines and the allocated incentive amount for this year is Rs.2,000 Crore on First Come First Served basis. The incentives include:
In accordance with the legal mandate under Section 162 of the Motor Vehicles Act, 1988, Cashless Treatment for Road Accident Victims Scheme, 2025 has been notified vide S.O. 2015(E) dated 05.05.2025. Furthermore, comprehensive guidelines detailing the process flow, roles and responsibilities of various stakeholders, and the Standard Operating Procedures (SOPs) for its implementation have been issued vide S.O. 2489 (E) dated 04.06.2025. The key features of the scheme are: –
24 hours in non-life-threatening cases, upto 48 hours in life-threatening cases at designated hospitals, subject to police response.
Details of various initiatives taken by the Government in Ministry of Road Transport and Highways to rectify accident black spots and enhance road safety on National Highways are as follows: –
junctions in cities having a population of more than one million in the country and cities under National Clean Air Programme (NCAP).
This information was given by the Union Minister for Road Transport and Highways, Shri Nitin Jairam Gadkari Ji in written reply to the Rajya Sabha.
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- Lump-sum incentives ranging from Rs. 10 crore to Rs. 200 crore, based on the category of State/UT, linked to notification and implementation of additional Motor Vehicle tax concession as per Notification no. GSR 200(E) dated 26.03.2025.