Reading Time: 2 minutes Home » Delhi Government Pioneers Subsidy for Scrapping Old Cars in Bold Move Towards Sustainable Mobility

In a pioneering initiative, the Delhi government has become the first state government to introduce a subsidy for scrapping old vehicles as part of its comprehensive car scrapping policy. The new policy, currently awaiting approval from the finance department, offers a flat benefit of Rs 50,000 to individuals scrapping their old cars while purchasing a new vehicle. This subsidy will be applied as a reduction of up to Rs 50,000 in the road tax for the newly purchased vehicle.

Addressing the Challenge of Aging Vehicles

Despite stringent measures previously implemented by the Delhi government, a significant number of vehicles exceeding their lifespan – 10 years for diesel vehicles and 15 years for petrol vehicles – continue to operate on the roads of the National Capital Region (NCR). Recognizing the environmental and safety implications of this, the Delhi government aims to incentivize the scrapping of such old vehicles by introducing attractive measures that benefit both vehicle owners and the environment.

Delhi Government Subsidy for Scrapping Old Cars – Key Features of the Scrapping Subsidy:

As part of the proposed policy, car owners opting to scrap their old vehicles will be issued a “certificate of deposit” to facilitate the subsidy application on the road tax of the new vehicle. This streamlined process ensures a seamless experience for individuals looking to upgrade their vehicles while contributing to the reduction of older, less eco-friendly automobiles on the roads.

Shift from Impounding to Incentivizing

In a noteworthy shift in approach, the Delhi government, until recently, had been impounding old vehicles, even those unused and parked in owners’ garages or outside their homes. However, following intervention from the Delhi High Court, the government has pivoted towards incentivizing the voluntary scrapping of old vehicles rather than enforcing impounding measures. This transformation aligns with a more proactive and positive strategy in addressing the challenge of aging vehicles.

Public Consultation and Approval Process:

Before the implementation of the new policy, the transport department of Delhi plans to present the proposal to the public for feedback. The policy, designed to encourage the scrapping of old vehicles in a cost-effective manner, is currently under consideration at the finance department, awaiting approval for its official launch.

Promoting Sustainable Mobility:

The introduction of a subsidy for scrapping old vehicles is a significant step towards promoting sustainable mobility in the NCR. By offering tangible benefits to individuals making the environmentally conscious choice to upgrade their vehicles, the Delhi government aims to create a positive impact on air quality, road safety, and overall urban well-being.


As the first state government to pioneer a subsidy for scrapping old vehicles, Delhi sets a precedent for other regions grappling with the challenges of aging automobiles. The innovative policy not only incentivizes responsible vehicle ownership but also positions Delhi as a trailblazer in the pursuit of green, sustainable transportation solutions.

In summary, the Delhi government’s initiative marks a bold stride towards a cleaner, greener future, where responsible vehicle scrapping becomes an integral part of the larger mission to transform urban mobility.


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Saman Nawaz

With over 7 years of experience in the field of content writing, Saman Nawaz has become a seasoned professional in her craft. As a Feature Writer at, she demonstrates expertise in creating timely news pieces and conducting thorough analyses within the automotive industry. Her proficiency lies in crafting up-to-date content that delves deep into the intricacies of the auto sector, providing readers with insightful perspectives and comprehensive information.Full Bio