The Rajasthan government is set to roll out the Rajasthan Vehicle Scrapping Policy 2025, offering a major incentive to vehicle owners by allowing discounts of up to 50% on the purchase of new vehicles in exchange for scrapping old, unfit ones. The policy, discussed in a recent cabinet meeting chaired by Chief Minister Bhajanlal Sharma, is expected to be implemented soon and is being seen as a win-win for consumers, the environment, and the automobile industry.
Under the new policy, 15-year-old unregistered, unfit, and obsolete vehicles will be removed from roads. Vehicle owners presenting a valid scrap certificate will be eligible for tax benefits of up to ₹1 lakh while purchasing a new vehicle, significantly reducing the overall cost.
Strengthening the Circular Economy
Deputy Chief Minister Dr. Prem Chand Bairwa said the policy will play a key role in strengthening the circular economy in Rajasthan. Materials recovered from scrapped vehicles—such as steel, aluminium, plastic, rubber, and other components—will be reused, providing low-cost raw materials to the automobile, steel, and manufacturing sectors.
As per the policy guidelines, registered scrappers will keep the cut chassis number of scrapped vehicles in safe custody for six months from the date of issue of the Certificate of Vehicle Scrapping (CVS). Thereafter, the chassis pieces will be deposited with the respective District Transport Office, where they will be preserved for another 18 months, ensuring transparency and preventing misuse.
Major Incentives for Scrap and Recycling Units
To attract private investment, the policy offers special incentives to registered vehicle scrapping units. These include:
- Capital investment subsidies for the first 20 units
- Exemptions in state taxes
- Interest subsidies
- Concessions in stamp duty
- Discounts on electricity tariffs
Additionally, recycling and scrapping-related startups will receive support under the Rajasthan Startup Policy, boosting entrepreneurship and employment generation in the sector.
Cabinet Clears Rajasthan AI-ML Policy 2026
Alongside the scrapping policy, the state cabinet approved the Rajasthan Artificial Intelligence & Machine Learning Policy 2026, aimed at positioning Rajasthan as a leading hub for innovation, technology, and investment.
The policy focuses on the ethical, transparent, and secure use of AI and ML to improve public service delivery, enhance administrative efficiency, and promote citizen-centric governance. Special emphasis has been placed on data security, cyber safety, bias reduction, and accountability in AI systems. The policy also outlines clear mechanisms for reporting and addressing AI-related cyber crimes.
A key highlight is the proposed establishment of an Artificial Intelligence Centre of Excellence in the state.
AI Education and Skill Development Push
Under the AI-ML Policy 2026:
- Each department will identify AI use cases and appoint an AI Nodal Officer
- Secure AI cloud services, data storage, and testing platforms will be promoted
- AI education will be encouraged in schools, ITIs, polytechnics, and colleges
- Training programs will be launched for youth, teachers, and government employees
- Industries, MSMEs, startups, and research institutions will receive additional incentives aligned with existing state policies
Pachpadra Refinery Nears Completion
Parliamentary Affairs Minister Jogaram Patel informed that construction of the 9 MMTPA Pachpadra Refinery-cum-Petrochemical Complex is in its final stages. The revised project cost now stands at ₹79,459 crore, with the debt-equity ratio maintained at 2:1. The state government’s equity share remains 26%, amounting to ₹6,886 crore, with an additional ₹565.24 crore to be paid due to the increased project cost.
The refinery is proposed to be inaugurated in January, with preparations underway for the launch by Prime Minister Narendra Modi.
A Transformational Step
With the introduction of the Vehicle Scrapping Policy 2025 and AI-ML Policy 2026, Rajasthan is taking a decisive step toward sustainable development, cleaner mobility, digital governance, and economic growth—offering citizens both financial relief and a vision for a future-ready state.
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