Mumbai Central RTO Earns ₹23.44 Lakh By Scrapping 20 Old Vehicles, Over Three Times Higher Than Initial Estimate Of ₹7 Lakh
Mumbai Central RTO earned ₹23.44 lakh by scrapping 20 old vehicles after shifting from a combined auction to vehicle-wise bidding. The earlier plan drew little interest, but separate auctions boosted competition and tripled revenue over the ₹7 lakh estimate. The move also helped clear space and reduce pollution from ageing vehicles.
Mumbai Central RTO Earns ₹23.44 Lakh By Scrapping 20 Old Vehicles, Over Three Times Higher Than Initial Estimate Of ₹7 Lakh | Representational Image
Mumbai: A simple change in auction strategy has delivered a big financial win for the Mumbai Central Regional Transport Office, which earned ₹23.44 lakh by scrapping 20 old vehicles over three times its initial estimate of ₹7 lakh. The jump in revenue came after the RTO abandoned a combined auction and instead sold each vehicle separately, attracting sharper and more competitive bids.
Vehicle-wise auction impact
Officials said the earlier plan to auction all scrap vehicles together failed to draw interest. The department then opted for vehicle-wise auctions, allowing bidders to choose specific taxis or buses based on their requirements. “Separate auctions created better competition as buyers could bid selectively. This directly pushed up prices,” an official said. Most of the vehicles were over 15 years old and had been lying unused for a long time inside the RTO premises.
The disposal drive not only boosted non-tax revenue but also cleared valuable space at the office. Authorities noted that such vehicles, apart from being unserviceable, contribute significantly to pollution. Older vehicles can emit multiple times more pollutants than newer ones, making their phased removal critical for urban air quality.
Future adoption of model
Encouraged by the outcome, officials are now considering adopting the separate auction model for future scrap disposals. The approach is being seen as a practical way to maximise returns while also supporting environmental and administrative goals.
With many ageing vehicles still awaiting disposal, the success of this strategy could offer a scalable template for other transport offices. It underscores how small administrative changes like switching to item-wise auctions can significantly improve revenue outcomes without additional costs.
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