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Haryana reviews incentives to expand vehicle scrapping and recycling sector
Indiatimes | March 14, 2026 9:40 PM CST

Nayab Singh Saini, Chief Minister of Haryana, held a review meeting in Chandigarh to examine incentive schemes designed to strengthen the vehicle scrapping and recycling sector in the state. The discussion focused on measures aimed at promoting industrial development in the recycling industry and encouraging investment in related infrastructure. During the meeting, officials reviewed policy proposals that aim to support the establishment and expansion of registered vehicle scrapping and recycling facilities. According to information shared during the review, the state government is considering the development of dedicated eco parks and recycling parks to provide industry-specific infrastructure and facilities.

Authorities indicated that such parks could help create an organized ecosystem for recycling activities, including vehicle dismantling, material recovery, and waste management processes. The proposed facilities are expected to provide improved logistical support and operational space for companies involved in the sector. Officials also discussed provisions that would grant registered vehicle scrapping and recycling units formal recognition as industrial entities. This classification would allow such businesses to access financial assistance and incentive programmes offered under the state’s industrial policies.

As part of the incentive framework, the government is exploring capital subsidy schemes intended to support companies that establish new units or expand existing recycling facilities. Under these provisions, businesses could receive subsidies on capital investment at predetermined rates, which could reduce the cost of setting up operations. The policy discussions also addressed the potential economic impact of the sector. Authorities noted that a more structured recycling industry could encourage investment in environmentally oriented manufacturing activities and generate employment opportunities in associated fields such as logistics, mechanical processing, and materials recovery.

Vehicle scrapping and recycling policies are being explored across several states in India as part of broader initiatives to improve resource efficiency and manage end-of-life vehicles through regulated systems. Officials present at the meeting discussed administrative measures needed to implement the policy framework and facilitate coordination between departments involved in industrial development and environmental management.


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