The Ministry of Environment, Forest and Climate Change (MoEFCC) notified Draft End-of-Life Vehicles (Management) Rules, 2024, dated 30th January. The rules can also be referred to as the Environment Protection (End-of-life Vehicles) Rules, 2025.
Who needs to follow the rules?
- Producers
- Registered owner of vehicles
- Bulk consumers
- Registered Vehicle Scrapping Facility
- Collection Centres
- Automated Testing Stations
- Entities involved in the testing of vehicles, handling, processing, and scrapping of ELVs
It is also applicable to all types of vehicles which are defined within Clause 20 of Section 2 of the Motor Vehicles Act 1988. This includes electric vehicles, battery-operated vehicles, e-rickshaws, or e-carts. However, this shall not be applicable for agricultural tractors, agricultural trailers, combine harvesters, and power tillers.
What are the key responsibilities of producers?
- Fulfilling the EPR obligations under vehicles that the producers require to introduce within the domestic markets, which includes self-used vehicles, for ensuring that the scrapping targets are met in the Schedule.
- Meeting with the targets of scrapping on ELV in the Schedule for the vehicle producers introduced within the domestic markets.
- Encourage ELV vehicles that are deposited in Registered Vehicle Scrapping Facility or designated Collection Centres.
- Fulfill EPR by purchasing the certificates and focusing on the Registered Vehicle Scrapping Facility or any entities.
- Deploying buy-back schemes, deposit refund schemes, and designating other entities to fulfill the obligations of EPR.
- Secure registration as a producer from the Central Board with a centralized online portal.
- Obtain annual returns in Form 1 within a centralized online portal to the central board by June 30th.
Based on the number and type of vehicles, such as transport or non-transport, and the weight of steel leveraged in the market, vehicles consist of those positioned in the market and self-use vehicles. It also involves declaring the EPR obligations on 30th April in the same year to the Central Board.
The producers are not liable to engage with any entity that is not registered under the rules for the scrapping of ELV, and not fulfilling the rules of EPR. Each of the producers is required to raise awareness campaigns and encourage the customers with the delivery of incentives for the safe deposit of ELV within the Registered Vehicle Scrapping Facility (RVSF) or the collection centre.
What must registered owners and bulk consumers do?
- The registered owners and the bulk consumers are required to be tested in accordance with Section 56 of the Motor Vehicles Act 1988 and within Rule 52 of the Central Motor Vehicles Rules 1898.
- ELV vehicles, as per Motor Vehicles (Registration and Functions of Vehicles Scrapping Facility) Rules 2021, the bulk consumers and the registered consumers are required to deposit ELV. This will be deposited within producers’ sales outlets, designated collection centres, or RVSF within a 180 day period from the date of issue of ELV.
- No individual is required to possess any ELV beyond the specific period sub-rule.
- Bulk consumers are required to obtain registration within the State Board’s centralised online portal.
- Bulk consumers are required to file annual returns within Form 2 before 30th June regarding the details of vehicles and ELV’s designated sales outlet or collection centre of RVSF for scrapping ELV.
What roles do collection centres and the Registered Vehicle Scrapping Facilities play?
- The collection centres are required to collect, store, and handle ELV in an environmentally sound manner and send them to the Registered Vehicle Scrapping Facility.
- The Registered Vehicle Scrapping Facility is required to undertake treatment of de-pollution, gases, collection of liquids, catalysts, batteries, mercury-containing parts, and hazardous waste.
- They require the dismantling of segregation and separation of different waste types.
- Activities related to safe storage of various waste categories in separate bins and recycling and refurbishment of materials (plastic, metals, catalytic converters, tyres, magnets, batteries, and e-waste) shall be authorised within RVSF.
- Registered Vehicle Scrapping Facility shall receive unfit vehicles or ELV for scrapping and carrying out treatment, dismantling, depolluting, segregation, and scrapping activities in relevance to laws.
What is an EPR Certificate for ELV, and how is it issued?
- In favour of the Registered Vehicle Scrapping Facility, the Central Board shall issue an EPR Certificate and develop a mechanism for such exchange within the centralised online portal.
- It shall be generated based on the weight of steel recovered from the processed ELV at RVSF or other steel scrap materials relevant to the automobile sector in accordance with the Motor Vehicles (Registration and Functions of Vehicles Scrapping Facility) Rules 2021.
- To estimate the EPR Certificate for RSVF, a formula such as EPR Certificate (in kg) = weight of the steel scrap obtained (in kg) at RVSF is relevant.
- The EPR Certificate shall be valid for 5 years, provided that it meets the obligations of the producers within the rules.
What are the latest amendments under the ELV framework?
- RVSFs and bulk consumers shall make an application in Form 5 and Form 6 for registration with the State Board.
- The Central Board is responsible for the application and shall be accounted for in cases when it is not objected to by the Central Board within 15 days.
As a measure of environmental compensation, the producers, bulk consumers, and the Registered Vehicle Scrapping Facility comply subsequently. This is mostly in cases where the amount of environmental compensation paid by the business entities is required to be paid in return, in cases where some of the obligations are complied with:
- One year with an estimation of 75%.
- Two years with an estimation of 60%.
- Three years with 40% of the environmental compensation.
What are the EPR targets for non-transport vehicles?
The Central Board has set targets for non-transport vehicles for steel use in vehicles, estimating:
| Extended Producer Responsibility target for the Financial Year | Extended Producer Responsibility target (Weight) |
| 2025-26 | Minimum 8% of the steel used in vehicles in 2005-06 |
| 2026-27 | Minimum 8% of the steel used in vehicles in 2006-07 |
| 2027-28 | Minimum 8% of the steel used in vehicles in 2007-08 |
| 2028-29 | Minimum 8% of the steel used in vehicles in 2008-09 |
| 2029-30 | Minimum 8% of the steel used in vehicles in 2009-10 |
| 2030-31 | Minimum 13% of the steel used in vehicles in 2010-11 |
| 2031-32 | Minimum 13% of the steel used in vehicles in 2011-12 |
| 2032-33 | Minimum 13% of the steel used in vehicles in 2012-13 |
| 2033-34 | Minimum 13% of the steel used in vehicles in 2013-14 |
| 2034-35 | Minimum 13% of the steel used in vehicles in 2014-15 |
| 2035-36 | Minimum 18% of the steel used in vehicles in 2015-16 |
| 2036-37 | Minimum 18% of the steel used in vehicles in 2016-17 |
| 2037-38 | Minimum 18% of the steel used in vehicles in 2017-18 |
| 2038-39 | Minimum 18% of the steel used in vehicles in 2018-19 |
| 2039-40 and onwards | Minimum 18% of the steel used in vehicles in 2019-20 for 2039-40 and for subsequent years, of the steel used in vehicles 20 years ago |
What are the EPR targets for transport vehicles?
The Central Board has set targets for transport vehicles for steel use in vehicles, estimating:
| Extended Producer Responsibility target for Financial Year | Extended Producer Responsibility target (Weight) |
| 2025-26 | Min 8% of the steel used in vehicles in 2010-11 |
| 2025-26 | Min 8% of the steel used in vehicles in 2011-12 |
| 2025-26 | Min 8% of the steel used in vehicles in 2012-13 |
| 2028-29 | Min 8% of the steel used in vehicles in 2013-14 |
| 2029-30 | Min 8% of the steel used in vehicles in 2014-15 |
| 2030-31 | Min 13% of the steel used in vehicles in 2015-16 |
| 2031-32 | Min 13% of the steel used in vehicles in 2016-17 |
| 2032-33 | Min 13% of the steel used in vehicles in 2017-18 |
| 2033-34 | Min 13% of the steel used in vehicles in 2018-19 |
| 2034-35 | Min 13% of the steel used in vehicles in 2019-20 |
| 2035-36 | Min 18% of the steel used in vehicles in 2020-21 |
| 2036-37 | Min 18% of the steel used in vehicles in 2021-22 |
| 2037-38 | Min 18% of the steel used in vehicles in 2022-23 |
| 2038-39 | Min 18% of the steel used in vehicles in 2023-24 |
| 2039-40 and onwards | Min 18% of the steel used in vehicles in 2024-25 for 2039-40 and for subsequent years, of the steel used in vehicles 15 years ago |
Through this, it can be found that 30% of the EPR targets can be carried forward to the subsequent four years to build EPR compliance.
Do you think EPR targets can be carried forward?
Some of the vehicles that have been placed in the market, depending on the EPR target, involve 2-wheeler, 3-wheeler, and 4-wheeler under non-transport, as well as 2-wheeler, 3-wheeler, and 4-wheeler under transport. Moreover, there are also certain vehicles registered and ELV deposited as Registered Vehicle Scrapping Facility in the cases of bulk consumers, including:
- The total number of vehicles registered is both transparent and non-transparent.
- Total number of vehicles completed within the age of 10 years in cases of diesel and 15 years in CNG, petrol in cases of electric vehicles.
- Combined fit vehicles.
- Total number of end-of-life or unfit vehicles.
- Accumulated number and details of deposited ELV at RVSF.
The particulars under the hazardous and non-recyclable/non-refurbishable materials encompass recovered hazardous materials, names of the producers, website address, registered address of products, and contact details. It also involves the name of the authorized person with full address, GST, and TIN details, and details related to vehicles manufactured. These fall under the category of Common Hazardous Waste Treatment, Storag,e and Disposal Facility within the financial year of the returns filed.
Conclusion
The Draft End-of-Life Vehicles (Management) Rules, 2024, promote environmentally sound vehicle scraping and the recovery of resources.
By ensuring safe dismantling, recycling of batteries, steel, and plastics, and strict EPR obligations for the producers, the rules can support sustainability and reduce waste. The framework drives a circular economy by enabling End-of-life vehicles within and cutting pollution, valuing raw materials, and conserving natural resources.
Responsibilities of the State Board
- The state board is required to register with the bulk consumers and Registered Vehicle Scrapping Facility within the centralized online portal in the duration of 15 days from application submission.
- Complies with the quarterly reports submitted by the Registered Vehicle Scrapping Facility and annual reports for the bulk consumers to the Central Board in the period of 30 days.
