Panaji: The vehicle scrappage policy is facing a major implementation problem, with Goa’s only authorised Registered Vehicle Scrapping Facility (RVSF) at Marcaim performing poorly and operating at just about a fraction of its potential.Transport director Arvind Khutkar said, “The capacity would be 100%, but it is now functioning at 10% of the capacity.”The RVSF, operated by Mangal Iron Pvt Ltd at Marcaim industrial estate began commercial operations on Nov 25, 2024.According to transport department figures, a total of 1,638 vehicles were scrapped at the facility to date. Of these, 1,369 were private vehicles and 269 govt vehicles. A total of 588 certificates of deposit (CODs) have been utilised, so far.Under govt order dated Aug 14, 2023, all govt-owned vehicles more than 15 years old were to be scrapped through registered RVSF.For vehicle owners, scrapping through the authorised facility can result in 25% concessions on road tax when purchasing a new vehicle, apart from the scrap value of the old vehicle. Registration fees on the new vehicle are also waived under the applicable provisions. Despite these incentives, the RVSF has failed to persuade private owners to surrender old vehicles.“Some owners may believe they can obtain better returns by selling their vehicles directly to a scrap dealer rather than taking them through the formal RVSF system,” Khutkar told TOI.“In other cases, Goans who work overseas, only to return home periodically and use their vehicles intermittently, making it mechanically sound and visually well-maintained. We permit renewal of registration beyond the 15-year mark, subject to fitness requirements and payment of the applicable green tax,” said Khutkar.Goa’s vehicular population suggests that residents continue to increasingly buy new vehicles each year. In 2024, when the RVSF operations commenced, Goa registered a total of 84,314 vehicles which further increased in 2025 to 86,349. As of mid-Aug 2026, the state has registered 56,160 new vehicles.The ministry of finance, through a notification dated Feb 28, 2024, released Rs 3.5 crore for the RVSF initiative in Goa.The transport department subsequently wrote to the Union ministry of road transport and highways on Dec 12, 2025, seeking release of a further Rs 1.5 crore incentive to Goa for scrapping govt and private vehicles at the RVSF.Yet, the RVSF continues to struggle.
