Telangana’s vehicle scrapping scheme falters as old vehicles stay on roads

The Telangana government’s Voluntary Vehicle Fleet Modernisation Policy (VVMP), aimed at phasing out ageing and polluting vehicles, has seen limited success in Hyderabad. Despite incentives such as tax concessions and waiver of penalties, only about 30 vehicles are scrapped monthly.

Hyderabad: Despite incentives and tax concessions announced by the State government, vehicle owners, particularly those with two-wheelers and cars older than 15 years, seem to have been showing limited interest in scrapping their vehicles.

As per information available, barely 30 vehicles are being scrapped each month in the city, reflecting a slow response to the Voluntary Vehicle Fleet Modernisation Policy (VVMP).

The scheme was introduced to gradually remove ageing and polluting vehicles from roads by encouraging owners to shift to newer, environmentally compliant models.

Regional Transport Authority (RTA) officials say many private vehicle owners usually argue that their vehicles, though over 15 years old, are in good condition. In some instances, as long as they pass fitness tests, owners prefer to keep them rather than scrap them.

Officials clarify that if a vehicle is officially scrapped, it is permanently deregistered and no longer registered in the owner’s name. On producing scrappage documents at the time of purchasing a new vehicle, eligible concessions are provided.

Under the state policy, transport vehicles older than eight years and non-transport vehicles older than 15 years qualify for ‘voluntary scrapping’.

Owners who surrender such vehicles at authorised centres receive a ‘Certificate of Deposit,’ which enables them to claim tax rebates while buying a new vehicle.

Tax concessions vary depending on the price of the new vehicle. Buyers of vehicles priced up to Rs 5 lakh are eligible for Rs 10,000 concession, while higher slabs offer benefits up to Rs 40,000. In addition, pending green tax and certain penalties are waived if the vehicle is scrapped within the stipulated timeframe.

Earlier, there was a regulation that from 2025, vehicles older than 15 years that fail mandatory fitness tests at Automated Testing Stations will not be permitted to operate on the roads.

Currently, to extend the registration of a vehicle beyond 15 years, owners must undergo a fitness test, pay green tax of Rs 5,000 and a processing fee of around Rs 2,000. Delays attract a penalty of Rs 500 per month.

There are three authorised Registered Vehicle Scrapping Facilities (RVSFs) across Telangana. In the Greater Hyderabad region, just one such centre operates near Patancheru at Pashamylaram. Though the facility has the capacity to handle around 30 vehicles per day, actual turnout remains low.

Officials attribute the slow pace partly to inadequate public awareness about the scrapping process and benefits.

Vintage Vehicles:

The Ministry of Road Transport and Highways has amended provisions under the Central Motor Vehicles Rules to introduce special regulations for vintage vehicles.

Under the revised norms, two and four-wheelers that are more than 50 years old and preserved in their original condition are classified as vintage vehicles.

These vehicles are exempt from the scrapping policy but cannot be used for regular or commercial purposes. They must obtain special registration under a unique “VA” series through the ‘Parivahan’ portal.

The registration certificate for vintage vehicles will be valid for 10 years and can be renewed. The move is aimed at preserving India’s motoring heritage while ensuring a uniform registration process across the states.