Nitin Gadkari, Minister of Road Transport and Highways in India, said that the government will not interfere in the determination of scrap vehicle prices and let market forces determine reasonable prices. The privately operated Reserve Vehicle Scrapping Facility (RVSF) will assess the value based on the condition of the vehicle.

To alleviate the financial burden on low-income groups, the government provides a number of incentives, including a "Certificate of Deposit" for scrapped vehicles can be exempted from new vehicle registration fees and a motor vehicle tax discount when purchasing a new vehicle, up to 25% for private vehicles and 15% for commercial vehicles. The concession period is 8 years for transport vehicles and 15 years for non-transport vehicles.

This policy applies to over-aged vehicles (diesel vehicles over 10 years old and petrol vehicles over 15 years old) in the National Capital Region (NCR).

In addition, the scrappage policy stipulates that the environmentally friendly disposal of vehicle parts must comply with the standards of the Central Pollution Control Board (CPCB) to reduce pollution.