City to get first official ‘khatara’ scrapping centres in Panvel and Karjat by July

Mumbai: Space-starved Mumbai will soon have its first official ‘khatara’ (abandoned vehicles) scrapping centres, with facilities being set up in Panvel and Karjat. The decision was finalised earlier this week during a meeting between Regional Transport Offices (RTOs) and officials from the state transport department. According to sources, the centres are expected to be operational by July or August this year.

Once commissioned, these will be among the eight scrapping centres across Maharashtra. The remaining six will come up in Pune, Nashik, Nagpur, Jalna, and Raigad. The initiative is part of a broader push under the national Vehicle Scrappage Policy, aimed at phasing out old, polluting vehicles and reducing congestion.

“For the Greater Mumbai region, land has been identified in Panvel and Karjat. Construction work is already underway and is likely to be completed by July. After that, vehicle owners will be able to scrap their end-of-life vehicles at these centres,” a senior transport department official said.

Vehicle owners who choose to scrap their old vehicles at an authorised facility will be eligible for incentives, including a fair market value for their discarded vehicles and up to a 15% tax concession on the purchase of a new vehicle of the same category.

The tax benefits will apply for up to eight years from the date of registration for transport vehicles, and up to 15 years for non-transport (private) vehicles. A certificate of deposit issued by the registered scrapping centre will remain valid for two years and must be presented to claim the tax benefits.

The move comes at a time when the Bombay High Court has raised serious concerns over the lack of a coherent policy to manage seized and abandoned vehicles in the city. On April 8, the court criticised the Brihanmumbai Municipal Corporation (BMC) and the traffic police for failing to tackle the issue. The unregulated parking of such vehicles near police stations and on public roads was cited as a key contributor to the city’s persistent traffic congestion and pedestrian woes.

Under instructions from the central government, all states are required to establish Vehicle Scrapping Centres (VSCs) to facilitate the systematic disposal of old vehicles, which are known to emit higher levels of pollutants.

In line with this directive, approval has been granted for setting up seven more centres across Maharashtra, with land acquisition in progress, transport officials confirmed.