Re introducing Vehicle Scrap into the Economy
During the launch of the Vehicle Scrappage Policy, Prime Minister Modi asserted the policy to be a “crucial link between the circular economy and the waste to wealth campaign.” With this policy, the government aims at promoting circular practices and developing a more sustainable economy. A circular economy is one based on reusing, recycling, refurbishing products and resources. The economy here factors in climate change, pollution, sustainability, etc., and then designs policies for tackling these through durable and better utilization of products and resources.
In this scheme, end of life vehicle recycling becomes a cornerstone. Just like how an e waste management company handles electronic waste in a structured, certified manner, the new framework envisions formalizing automotive recycling and automobile dismantling in India, integrating them into a larger waste management system.
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What the Policy Proposes & Why It Matters
The policy will help in removing environmentally unfit vehicles from Indian roads through scientific processes that comply with legal disposal norms. Rather than letting old vehicles languish or be dismantled informally, the goal is to channel them through government authorized channels, creating verified recovery value for materials while reducing pollution.
It will also support the economy by scrapping vehicles and recovering scrap automotive materials, which supply raw inputs at lower cost to manufacturing. Since nearly 99 percent of a vehicle’s components are technically recyclable, a structured end of life vehicle recycling process can generate large-scale returns. This will in turn spur employment, investment, and entrepreneurship in formal recycling chains.
By achieving robust automotive recycling and automobile dismantling, we can ensure that parts are reused, components are refurbished, and only truly irrecoverable material is disposed via legal disposal routes — minimizing waste and carbon emissions.
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Toward a Circular & Responsible Ecosystem
This ecosystem must align both environmental and economic goals. The approach is:
• Repair what is repairable
• Refurbish what is discard-worthy
• Remanufacture parts from recycled feedstock
• Recycle debris and residual materials
This forms a loop — a true circular system that reduces resource consumption, limits waste, and mitigates pollution. The 2021 scrappage policy explicitly aims to bring this to life.
Critical infrastructure and regulatory functions include:
• Automobile dismantling facilities certified by relevant authorities
• Automotive recycling units that recover metals, plastics, glass, rubber, and electronics
• Legal disposal systems for hazardous fluids, batteries, lubricants
• Government authorized Registered Vehicle Scrapping Facilities (RVSFs) to enforce standards
Just as an e waste management company ensures responsible dismantling of electronics under formal guidelines, the scrappage ecosystem must do the same for vehicles.
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Vardhman Recycling & the Path Forward
Vardhman Recycling positions itself as a one-stop solution for global-standard auto recycling in India. With deep expertise in waste segregation and maximizing the utility of scrap automotive parts, it ensures high recovery rates.
Through its flagship venture, Vahan Recycling, the Vardhman group aims to bring formal end of life vehicle recycling practices to scale. The implementation of the Vehicle Scrappage Policy gives it the legal, structural, and market backing needed to grow responsibly.
By integrating with government authorized scrappage networks, Vardhman can ensure that dismantling, recycling, and legal disposal are done transparently, safely, and profitably — thereby fulfilling both environmental and economic goals.

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