New Delhi(ABC Live): ELV Rules 2025: On 6 January 2025, the Ministry of Environment, Forest and Climate Change (MoEF&CC) notified the Environment Protection (End-of-Life Vehicles) Rules, 2025. For the first time, India mandates Extended Producer Responsibility (EPR) for scrapping old vehicles, aiming to reduce pollution and formalise the scrapping sector.

This policy is crucial—India has over 341.5 million registered vehicles, and at least 61 million of them are older than 15 years, many emitting pollutants far beyond permitted limits.

What the ELV Rules 2025 Say

• Applies to all transport and non-transport vehicles, except:

  • Agricultural tractors

  • Combine harvesters

  • Power tillers

• Scrapping Targets:

  • Vehicles older than 15 years (transport) and 20 years (non-transport) fall under scrapping mandates for producers.

• Producers Must:

  • Register with CPCB

  • Establish collection centres

  • Meet scraping targets annually

• RVSFs Must:

  • Handle ELVs with depollution, dismantling, and segregation

  • Send hazardous materials to authorised TSDFs

• Owners Must:

  • Deposit ELVs within 180 days of expiration

  • Currently, no legal compensation is mandated

Data Snapshot: India’s Vehicle Aging Problem

• Pollution

• Unsafe dismantling

• Loss of recyclable resources

Should Agricultural Vehicles Be Included?

Currently excluded, tractors, harvesters, and tillers are a large segment of rural emissions. With over 8 million registered tractors, their exclusion risks:

• Rural air quality degradation

• Unregulated hazardous waste

• Weakening of environmental equity

Recommendation: Phase-wise inclusion from 2028, with scrappage incentives for farmers.

Impact on Second-Hand Vehicle Market

India’s second-hand vehicle market is worth ₹2.1 lakh crore. Here’s how it will change:

How Do Other Countries Handle ELVs?

India’s rules are progressive but lack mandatory owner compensation. Here’s how leading nations compare:

• Not part of ELV legal framework

• Unevenly implemented across states

• Manufacturer-dependent

Should Owners Be Compensated?

Absolutely. Voluntary scrapping without incentive discourages compliance, especially among low-income and rural populations.

Policy Recommendations:

1. Legally integrate V-VMP incentives into ELV rules.

2. Mandate “free take-back” clause for eligible ELVs.

3. Enable digital scrapping certificates redeemable for:

   • Tax rebates

   • Toll waivers

   • Public transport credits

4. Allow producer buy-back models, like in the UK.

Environmental and Economic Outcomes

• Scrap steel potential: 12–15 million tonnes by 2030

• Import reduction: India imports 5M+ tonnes of scrap annually

• Job creation: 35,000+ direct, 1.5 lakh+ indirect

• Cleaner air: BS-VI vs 15-year-old vehicle = 90% fewer emissions

Conclusion: A Green Transition with Gaps to Fill

India’s End-of-Life Vehicle Rules, 2025 mark a vital step toward:

• Formalizing scrappage

• Reducing emissions

• Boosting the circular economy

But to truly succeed, the government must:

• Expand coverage to agricultural vehicles

• Guarantee compensation

• Align policies with global best practices

Only then can India build a truly inclusive, green, and efficient scrapping ecosystem.