In a recent cabinet meeting led by Chief Minister Bhajan Lal Sharma, the Rajasthan government endorsed significant policy decisions focusing on environmental conservation, sustainable development, responsible Artificial Intelligence use, industrial growth, and employee welfare. Deputy Chief Minister Premchand Bairwa, Parliamentary Affairs Minister Jogaram Patel, and PHED Minister Kanhaiyalal shared that the Rajasthan Vehicle Scrapping Policy-2025, part of the 2025–26 Budget, has been given the green light. The policy targets the elimination of unfit, unregistered, and polluting vehicles through safe and environmentally compliant scrapping processes.
Registered Vehicle Scrapping Facilities (RVSF) will be promoted statewide to ensure transparent and traceable scrapping operations linked with the Vahan portal, preventing unauthorized use of scrapped vehicles. Under this policy, government vehicles older than 15 years, unfit/unregistered vehicles, accident-damaged vehicles, auctioned scrap, unused, or voluntarily surrendered vehicles are eligible for scrapping. Vehicle owners will be issued a Certificate of Deposit (CoD) and Certificate of Vehicle Scrapping (CVS), digitally recorded on the portal.
Buyers, based on the CoD, can avail up to a 50% tax exemption (maximum Rs 1 lakh) on motor vehicle tax upon purchasing a new vehicle. The scrapped vehicle chassis cut-pieces will be securely held by the authorized scrapper for six months and then transferred to the District Transport Officer for another 18 months. The policy aims to promote a circular economy by facilitating the reuse of materials like steel, aluminum, plastic, and rubber, thereby cutting down raw material expenses for the automobile, steel, and manufacturing industries.
To attract investments, the policy offers capital subsidy, state tax exemption, interest subsidy, and various concessions such as stamp duty and electricity duty waivers for the initial 20 scrapping units. Additionally, startups in the recycling and scrapping sector will receive assistance under the Rajasthan Startup Policy.
