Sarthak Advocates & Solicitors logo

Sarthak Advocates & Solicitors

Show options

News and developments

India Notifies its End-of-Life Vehicles Rules

- Ashutosh Senger & Nirmal John

INTRODUCTION

The Ministry of Environment, Forest and Climate Change (“MoEFCC”) has notified the Environment Protection (End-of-Life Vehicles) Rules, 2025 (“ELV Rules”) which establishes a comprehensive framework for the environmentally sound management of end-of-life vehicles (“ELVs”). These ELV Rules come into force from 1st April 2025.

It has been estimated that passenger cars constitute about 70% steel and 7- 8% aluminium. Therefore, ELVs contain significant amounts of metal and other materials that can be salvaged and, if recycled properly, can be fed back into the supply chain. This process will lessen the environmental impact linked to the mining of primary materials and reduce the vehicle’s life cycle emissions.

ELVs means all vehicles which are no longer validly registered or declared unfit through Automated Fitness Centres or their registrations have been cancelled under Chapter IV of the Motor Vehicles Act, 1988 or due to an order of a Court of Law or are self-declared by the legitimate registered owner as a waste vehicle due to any circumstances as specified in the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021.

APPLICATION AND NO DOUBLE REGULATION

The ELV Rules apply to producer, registered owners of vehicles, bulk consumers, Registered Vehicle Scrapping Facility (“RVSF”), collection centres, automated testing stations and entities involved in testing of vehicles, handling, processing and scrapping of ELVs. The applicability of the ELV Rules extends to all types of vehicles defined in section 2(28) of the Motor Vehicles Act, 1988 and includes an electric vehicle, battery operated vehicle, e-rikshaw or e-cart, but does not apply to agricultural tractors, agricultural trailers; combine harvester; and power tillers.

There is no double regulation as the ELV Rules do not apply to waste batteries covered under the Battery Waste Management Rules, 2022; plastic packaging as covered under the Plastic Waste Management Rules, 2016; waste tyres and used oil as covered under Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016; and E-waste as covered under E-Waste (Management) Rules, 2022.

RESPONSIBILITIES ON THE STAKEHOLDERS:

These ELV Rules includes provisions for the responsibilities of various stakeholders and outlines the extended producer responsibility (“EPR”) obligations for producers. Some of the selected responsibilities of the stakeholders outlined in these ELV Rules are mentioned below:

  • Producer Responsibilities:

  • Fulfil its EPR obligations for vehicles introduced by it in the domestic market, including those for self-use, by ensuring the scrapping targets specified in the Schedule appended to these ELV Rules are met. The targets include scrapping a minimum percentage of steel used in vehicles, with specific percentages detailed for different years.

  • Take measures to encourage the deposit of ELVs at RVSF or designated collection centres.

  • Fulfil its EPR obligations either through the purchase of EPR certificate generated by its own RVSF or by any entity having RVSF.

  • Declare EPR Obligations: Producer must declare its EPR obligations for the current year by 30th April of the same year to the Central Pollution Control Board (“CPCB”).

  • Registration: Producer must obtain registration as a producer from the CPCB through centralised online portal by making an application in Form 4 appended to these ELV Rules.

  • Annual Return: Producer must furnish its annual returns in Form 1 appended to these ELV Rules on the centralised online portal to CPCB by 30th June for the previous financial year.

  • RVSF Responsibilities:

  • RVSF must conduct activities such as treatment, dismantling, safe storage of various categories of waste in separate bins and recycling and refurbishment of materials in an environmentally sound manner.

  • Maintain records of the receipt of ELVs, weight of various types of waste materials generated and handed over to authorized recyclers or refurbishes or treatment facilities and disposal facilities.

  • Registration: RVSF must make an application in Form 5 appended to these ELV Rules to the concerned State Pollution Control Board (“SPCB”) and obtain registration for operation or RVSF.

  • Quarterly Returns: RVSF shall file quarterly returns on the centralised online portal to SPCB in Form 3 appended to these ELV Rules by the 30th day of the next month of the previous quarter and keep a record.

  • Registered Owner and Bulk Consumer:

  • When a vehicle becomes an ELV, the registered owner or bulk consumer must deposit the ELV at any of the producer’s designated sales outlet or designated collection centre or RVSF within 180 days from the date the vehicle becomes an ELV. No person shall keep an ELV beyond this specified period.

  • Registration: The ELV Rules defines a bulk consumer as a consumer owning more than 100 vehicles. A bulk consumer must obtain registration on the centralised online portal from the SPCB.

  • Annual Return: Bulk consumer must file an annual return in Form 2 appended to these ELV Rules on or before 30th June for the previous financial year on the centralised online portal.

  • Collection Centre:

  • Collection Centre must collect and store ELVs and send them to RVSF.

  • They are mandated to maintain the records of the ELVs received by it and sent to the RVSF and the way such vehicle is handled.

  • Automated Testing Station (ATS):

  • ATS is required to upload the details of all vehicles declared unfit under rule 182 of the Central Motor Vehicles Rules, 1989, on the centralised online portal.

    • CENTRALIZED ONLINE PORTAL:

    The ELV Rules mandate the CPCB to establish a centralised online portal within six (06) months of publication of these ELV Rules. This portal will impact all stakeholders involved in the management of ELVs because it will be used for registration of producers, bulk consumers, and RVSF and for filing of returns by them. Further, the portal enables the exchange of EPR certificates, allowing producers to fulfil their obligations through certificates generated by RVSF. The portal will serve as a single point data repository for all activities under these ELV Rules.

    LIABILITY TO PAY ENVIRONMENTAL COMPENSATION

    If any producer, RVSF, or bulk consumer fails to comply with the provisions relating to the handling and scrapping of ELVs in an environmentally sound manner under these ELV Rules, they are liable to pay Environmental Compensation (“EC”) equivalent to the loss, damage, or injury caused to the environment or public health in accordance with the guidelines issued by the CPCB. Proactive compliance strategies are underscored by allowing the return of a portion of the EC if the obligations are subsequently met.

    Ensuring compliance

    Stakeholders should take steps to comply with the provisions of these ELV Rules. As these ELV Rules come into effect on 1st April 2025, producers, RVSFs, and bulk consumers must take steps towards registering themselves under these ELV Rules. Further, producers must declare their EPR obligations within the specified timeframe.

    These ELV Rules signal the beginning of India’s move towards dealing with ELVs as part of the strategy to limit the emissions of on-road vehicles. By familiarizing themselves with the intricacies of these ELV Rules, stakeholders can develop a deeper understanding of the potential impact of these ELV Rules on their operations and overall business strategies. Effective implementation and compliance with these ELV Rules will not only reduce the environmental impact of vehicle disposal but also create opportunities for innovation in recycling and material recovery.

    Content supplied by Sarthak Advocates & Solicitors