Govt May Allow Old Vehicles to Go Electric or CNG Instead of Scrapping: Retrofit Policy Under Consideration
New Delhi: The Central Government is actively considering a significant shift in its vehicle scrappage policy that could provide a new lease of life to older vehicles.
Instead of mandating the scrapping of 10- and 15-year-old vehicles, the government may soon allow technically fit vehicles to continue operating after being converted to electric or cleaner fuels such as CNG or LNG through retrofit technology.
According to sources, the Ministry of Road Transport and Highways is working on a proposal that would make the scrappage policy more practical and economically viable.
The idea is to encourage vehicle owners—particularly operators of commercial vehicles such as trucks, buses, tempos, and travellers—to adopt cleaner technologies without completely discarding their existing vehicles.
Under the proposed framework, the government may subsidise 15–25 per cent of the cost involved in installing certified electric retrofit kits in commercial vehicles.
Since retrofitting currently involves high costs and technical complexities, financial assistance is expected to encourage wider adoption and reduce the financial burden on transport operators.
Another key component of the policy is the development of a nationwide network of authorised retrofitment centres.
Only certified kits installed at these approved centres would qualify vehicles for fitness certification renewal, which may be extended for an additional five years.
This move aims to ensure safety, quality control, and standardisation in the retrofitment process.
Experts believe that the relatively slow progress of the existing scrappage policy has highlighted the need for more flexible and practical solutions.
Transport unions have also been consistently demanding an option to extend the operational life of vehicles rather than forcing owners to scrap them prematurely.
Meanwhile, limited interest from private investors in setting up scrappage facilities has further strengthened the case for retrofit-based solutions.
The Automotive Research Association of India (ARAI) has already initiated the process of developing standards for electric retrofit kits, signalling that groundwork for the policy is underway.
If implemented, the proposed changes could provide a balanced approach—reducing vehicular pollution while minimising economic stress on vehicle owners. The government is expected to announce the updated policy framework in the near future.
