India Announces Draft on End-of-Life Vehicles Rules

Introduction

The Draft End-of-Life Vehicles (Management) Rules, 2024 were released by the Ministry of Environment, Forests, and Climate Change of India (MoEFCC) on January 30, 2023. Beginning in April 2025, the draft rules will create an Extended Producer Responsibility (EPR) scheme for automakers and other parties to encourage the ecologically responsible disposal of End-of-Life Vehicles (ELVs). “Vehicles placed in the market”, which is different from “sold”.In order to be considered producers, businesses must meet steel recycling goals, sign up for a special portal, and provide yearly reports. Although there have previously been rules for ELV recyclers and processors, this draft regulation will be the first comprehensive EPR law that specifically targets automakers. It also includes electric cars, such as e-rickshaws and e-carts. It did not, however, include any clauses limiting the use of recycled materials or confined compounds.

End-of-Life Vehicle means a vehicle:

• Which is no longer validly registered
• Which has been declared unfit by Automated Testing Station after undergoing test or re-test as specified under the provisions of the Central Motor Vehicles (Twenty first Amendment) Rules, 2021 or Central Motor Vehicles (Eighth Amendment) Rules, 2022 
• Of which registration has been cancelled under Chapter IV of the Central Motor Vehicles Act, 1988 (59 of 1988) 
• Declared as End-of-Life due to an order of a Court of Law 
• Which is self-declared by the legitimate registered owner as a waste vehicle due to any circumstances that may arise from fire, damage, natural disaster, riots or accidents, or otherwise

Producer means an entity who engages in domestic market for:

• Manufacture/assembly and sale of vehicles under its own brand
• Sale of vehicles under its own brand produced by other manufacturers or suppliers
• Import of vehicles
• Manufacture/assembly and sale of vehicles to producer of (ii) above, not under its own brand

• Which is self-declared by the legitimate registered owner as a waste vehicle due to any circumstances that may arise from fire, damage, natural disaster, riots or accidents, or otherwise

Extended Producer Responsibility means responsibility of any Producer of vehicles for environmentally sound management of End-of-Life Vehicle

Extended Producer Responsibility registration means registration by Central Pollution Control Board of a producer for Extended Producer Responsibility

Extended Producer Responsibility certificate means a certificate issued by Central Pollution Control Board for Registered Vehicle Scrapping Facility that may be purchased by producer to meet the Extended Producer Responsibility target

Responsibilities of producer:- 

1. It shall be the responsibility of the producer,

• To fulfil the obligation of Extended Producer Responsibility for the vehicles that they introduce in the domestic market including vehicles put to self-use to ensure the recycling targets as specified in Schedule I
• To meet the recycling targets of End-of-Life Vehicles as mentioned in Schedule I for vehicles made available in the market
• In case, the Producer is manufacturing or assembling vehicles and not placing it in the market in its own brand name, such Producer shall register themselves as the Producer of vehicle to the extent of meeting the Extended Producer Responsibility obligations for environmentally sound management of direct pre- consumer waste generated during manufacturing/assembly which is not already covered under other waste management policies. 
• To take necessary measures to encourage End-of-Life Vehicles are deposited at the Registered Vehicle Scrapping Facility or designated Collection Centres
• To fulfil the Extended Producer Responsibility either through purchase of Extended Producer Responsibility certificate generated by its own Registered Vehicle Scrapping Facility or by any entity having Registered Vehicle Scrapping Facility
• To deploy any schemes such as buy back scheme, deposit refund scheme or any other, and designate any other entity to fulfil the obligation of Extended Producer Responsibility
• To obtain one-time registration as a producer from the Central Pollution Control Board in Form 1(A). The certificate of registration shall be issued in Form 1(B)
• To furnish annual returns in Form 1(C) to CPCB by 30th June for the previous financial year in respect of the information regarding number, type and weight of steel used in vehicles placed in the market including vehicles put to self-use in previous financial year
• To furnish annual returns by 30th June in respect of fulfilment of Extended Producer Responsibility obligations during the previous financial year, as per the form prescribed by Central Pollution Control Board
• To declare their Extended Producer Responsibility obligations for the current year by 30th April of the same year as per the form prescribed by Central Pollution Control Board
• To inform the Central Pollution Control Board of any changes to the information contained in the Extended Producer Responsibility Registration and of any permanent cessation as regards to the making available on the market of the vehicles referred to in the Extended Producer Responsibility Registration
• To bring to the notice of the Central Pollution Control Board or State Pollution Control Board of violations of these rules by any entity involved in handling and management of End-of-Life Vehicles 
• To take measures to comply with the provisions of AIS-219, as notified by the Government of India, under Centre Motor Vehicles Rules, 1989. 

1. Producer shall not deal with any other entity not having registration mandated under these rules or under the EP Act.
2. In order to meet the obligations of Extended Producer Responsibility, the producer may engage itself or authorize any other entity. However, the obligations of meeting the Extended Producer Responsibility targets shall remain with the producer.

Responsibilities of registered owner:- 

• It shall be the responsibility of the registered owner to ensure that End-of-Life Vehicles are managed in an environmentally sound manner and deposited at the Registered Vehicle Scrapping Facility or the designated Collection Centre.
• Registered owner shall not hold the vehicle for more than six months and shall produce Certificate of Deposit after its declaration as End-of-Life Vehicle as per the prevailing rules.

Responsibilities of bulk consumer:- 

(1) It shall be the responsibility of the bulk consumer,

• To get registered on the portal
• To ensure that End-of-Life Vehicles are managed in an environmentally sound manner and deposited at the Registered Vehicle Scrapping Facility or the designated Collection Centre
• To file annual returns about the vehicle fleet as well as the End-of-Life Vehicles deposited at Registered Vehicle Scrapping Facility. 

(2) Bulk consumers shall not hold the vehicle for more than six months and shall produce Certificate of Deposit after its declaration as End-of-Life Vehicle as per the prevailing rules.

Responsibilities of Collection Centre:-

• Collection Centre shall collect and store End-of-Life Vehicles and send them for further processing to the Registered Vehicle Scrapping Facility.
• Collection Centre shall handle the End-of-Life Vehicles in an environmentally sound manner.

Responsibilities of Automated Testing Station:-

• Automated Testing Station shall conduct vehicle fitness testing through automated vehicle testing equipment in accordance with provisions of Central Motor Vehicles (Twenty First Amendment) Rules, 2021. 
• Automated Testing Station shall declare a vehicle as End-of-Life Vehicle if it fails the automated fitness test in accordance with provisions of Central Motor Vehicles (Twenty First Amendment) Rules, 2021. 
• Automated Testing Station shall maintain the record of the number of vehicles tested and link the data to the centralised online portal by Central Pollution Control Board.

Responsibilities of Registered Vehicle Scrapping Facility:-

Registered Vehicle Scrapping Facility shall,

(1) To have environmentally sound management facilities,

• For treatment (de-pollution, collection of liquids, gases, catalyst, mercury containing parts, batteries and hazardous waste)
• For dismantling (segregation and separation of various types of wastes)
• For safe storage of various categories of wastes in separate bins
• For recycling/refurbishing of materials (plastic, metals, tyres, batteries and e-waste) on its own or through authorized recyclers/refurbishers.

(2) To function in accordance with the guidelines prescribed by the Central Pollution Control Board

(3) To make an application in Form 2(A) to obtain one-time registration from the concerned State Pollution Control Board. The certificate of registration shall be issued in Form 2(B)

(4) To receive unfit vehicles or end-of-life vehicles for carrying out treatment, depolluting, dismantling, segregation and recycling/refurbishing activities.

(5) To send all the recovered and segregated materials from End-of-life Vehicles to registered recyclers/refurbishers, co-processors for recycling and reuse of components or materials, in case of not having recycling/refurbishing facility

(6) To send all non-recyclable/ non-refurbishable materials and non-recoverable hazardous materials to Common Hazardous Waste Treatment, Storage and Disposal Facility

(7) To hand over the hazardous and non-recyclable/ non-refurbishable materials to Common Hazardous Waste Treatment, Storage and Disposal Facility

(8) To generate Extended Producer Responsibility certificates upon processing of End-of-life vehicles based on the quantity of steel from the End-of-Life Vehicles and upload the data on online portal for verification by Central Pollution Control Board or its authorised agency

(9) To maintain records of receipt of End-of-Vehicles, weight of various types of waste materials generated and handed over to authorized recyclers/refurbishers or treatment facilities and disposal facilities

(10)To file quarterly returns to State Pollution Control Board in Form 3 on weight of End-of-Life Vehicles received and weight of materials (category-wise) recycled/refurbished or sent for recycling/refurbishing, processing, and Common Hazardous Waste Treatment, Storage and Disposal Facilities by 30th of the next month of the previous quarter, and keep a record.

Environmental Compensation

Violations, including the failure to comply with recycling obligations, are assessed in the form of a penalty called environmental compensation. The difference from general penalties is that if the violations are addressed within three years of the imposition, a portion of the amount imposed will be refunded to the violator.

Action on violations and imposition of Environmental Compensation:–

(1) Environmental Compensation shall be levied for non-compliance of provisions of these rules,

• For not meeting prescribed EPR targets
• For carrying out activities without registration as mandated under these rules; 24 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] 
• For providing false information / wilful concealment of material facts by the entities registered under these rules
• For submission of forged/manipulated documents by the entities registered under these rules;
• For not following environmentally sound handling/management of End-of-Life Vehicles in case of Registered Vehicle Scrapping Facility or other entities.

(2) These activities, may also be dealt with under the provisions of section 15 of the Environment (Protection) Act, 1986, in case of evasion or violation either by entity itself or help abet any obligated entity evade or violate obligations, after giving an opportunity of being heard. 

(3) Environmental Compensation shall be levied by Central Pollution Control Board on producers operating with respect to non-fulfilment of their Extended Producer Responsibility targets, responsibilities and obligations set out in these rules. 

(4) Environmental Compensation shall be levied by respective State Pollution Control Board on Registered Vehicle Scrapping Facility operating in their jurisdiction, with respect to non-fulfillment of their responsibilities and obligations set out under these rules. In case, the State Pollution Control Board does not take action in sixty days, the Central Pollution Control Board shall issue directions to the State Pollution Control Board.

(5) Payment of Environmental Compensation shall not absolve producer of Extended Producer Responsibility obligation set out under these rules. 

1. i) The unfulfilled Extended Producer Responsibility obligation for a particular year will be carried forward to the next year for a period of three years. 
2. ii) In case the shortfall of Extended Producer Responsibility obligation is addressed within subsequent years within three years, the Environmental Compensation levied shall be returned to the producer as given below, 

• Within one year of levying of Environmental Compensation: 75 percent return
• Within two years: 60 percent return
• Within three years: 40 percent return.

(6) After completion of three years after Environmental Compensation getting due, the entire Environmental Compensation amount shall be forfeited, this arrangement shall allow for recycling/refurbishment of materials of End-of-Life Vehicles by the concerned entities in later years as well. 

(7) The funds collected under Environmental Compensation shall be kept in a separate account by Central Pollution Control Board or State Pollution Control Board. 

• The funds collected shall be utilised in collection and recycling of uncollected End-of-Life Vehicles against which the Environmental Compensation is imposed. 
• Modalities for utilisation of the funds for End-of-Life Vehicles management would be finalised by the Committee for Implementation. 

(8) Non-fulfilment of obligations set out under these guidelines will attract penal actions under the provisions of Section 15 of the Environment (Protection) Act, 1986. 

Recycling Targets

Producers must achieve steel recycling targets set for each fiscal year by obtaining EPR certificates through their own recycling facilities, or by purchasing from recyclers. The target is calculated separately for private vehicles and commercial vehicles as follows. 

Private vehicles:

• Each year between 2025-26~2029-30: 10% of the steel used in vehicles placed in market 20 years ago
• Each year between 2030-31~2034-35: 20% of the steel used in vehicles placed in market 20 years ago
• Each year between 2035-36~2039-40: 30% of the steel used in vehicles placed in market 20 years ago

Commercial vehicles:

• Each year between 2025-26~2029-30: 10% of the steel used in vehicles placed in market 12 years ago
• Each year between 2030-31~2034-35: 20% of the steel used in vehicles placed in market 12 years ago
• Each year between 2035-36~2039-40: 30% of the steel used in vehicles placed in market 12 years ago

Registration:- Producers will be required to register on a portal, which will be made available within six months of promulgation of the Rules.

Annual Returns

Producers must also submit annual returns for the previous year by June 30 of each fiscal year. Items to be reported include the amount and type of vehicles placed on the market during the previous year, amount of steel used, and the fulfillment of recycling targets.

Conclusion

The responsibilities outlined in this ELV draft, Registration, Recycling goals, and Yearly reports are strikingly similar to those of the EPR programmes that are now in place and cover used oil, plastic packaging, discarded tyres, electrical and electronic equipment, and batteries. India’s waste-related legislation and regulations, like the EPR, have been regularly implemented and tightened in recent years, while not being as stringent as those of the EU’s ELV Directive.

As part of their requirements, producers are encouraged to gather information on the steel used in automobiles that are sold in India after the year 2005. To acquire EPR certificates, it is also advisable to gather information and locate suitable recyclers.