Rajasthan Cabinet Clears Vehicle Scrapping Policy 2025, Fixes Pachpadra Refinery Cost and State Stake

Overview

• The policy was approved at a meeting chaired by Chief Minister Bhajan Lal Sharma, with scrapping to run through Vahan-integrated Registered Vehicle Scrapping Facilities for transparent, traceable processes.
• Eligible categories include government vehicles over 15 years old, unfit or unregistered vehicles, accident-damaged units, auctioned scrap, unused vehicles, or those voluntarily surrendered.
• Vehicle owners will receive a Certificate of Deposit and a Certificate of Vehicle Scrapping digitally, while chassis cut pieces stay six months with authorised scrappers before 18 months in District Transport Office custody.
• Investment incentives include capital subsidy, state tax exemption, interest subsidy, and concessions on stamp duty and electricity duty for the first 20 scrapping units, with recycling startups supported under the Rajasthan Startup Policy.
• Ministers said the Cabinet approved a second revised estimate for the Pachpadra refinery at ₹79,459 crore, retained the state’s 26% equity (₹6,886 crore) with an additional ₹565.24 crore, and indicated commissioning is likely in January 2026.