I chose the appointment route rather than mailing my application.
The current VFS instructions show that surrender applications can be submitted through an appointment process. Under that route, you complete the government application, prepare your supporting documents, book an appointment and then visit the designated ICAC at the scheduled time.
So I wouldn't say that every applicant must book an appointment.
The bigger issue is determining whether you're using the postal route or the in-person appointment route and whether your particular application qualifies for the option you want.
I also noticed that VFS has separate instructions for different consular services, so it's important to select the actual surrender/renunciation service rather than assuming the general passport appointment procedure applies.
I would start from the VFS India-USA surrender page and follow the current instructions there. The page currently lists ICAC locations including Atlanta, Chicago, Houston, New York, San Francisco, Washington DC and Seattle.
I recently completed mine in the US and initially had exactly the same confusion.
What I found is that VFS currently provides both postal/courier and appointment-based submission routes for certain Indian consular applications, including surrender of Indian passport. The VFS USA page specifically lists “Renunciation or Surrender of Indian Passport” under both its postal process and appointment process.
I used the postal route because I was eligible for it and didn't want to travel to the application centre.
I completed the government form first, prepared the supporting documents, registered the application on the VFS portal, paid the applicable fees and sent the package to the ICAC associated with my jurisdiction.
The important thing is to follow the current instructions for your specific consular jurisdiction. I wouldn't assume that what someone in California did will necessarily be identical to someone in Texas or New York.
Also, make sure you upload the photograph and signature where required. The VFS surrender instructions specifically say that online photograph and signature upload is mandatory and that applications received without them can be returned unprocessed.
If you are someone like me who is planning to apply for an OCI card after surrendering your Indian passport, then in my opinion, you should book an appointment. While you have the option to mail, having your surrender certificate issued on the spot and verifying everything is accurate is vital to speed up the whole process because you are less likely to have issues with any documents or details.
I lost my Indian passport, and for me, booking an appointment was a must. Even though I had the option to mail in everything, I chose to visit in person because I wanted to make sure that all my affidavits and police reports were correctly submitted and understood. The staff at VFS Global in New York were invaluable; they guided me with everything. Although it is not mandatory, if your case is like mine, then an appointment would help you a lot to have peace of mind.
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One thing I'd clarify is the terminology.
If you acquired US citizenship after previously being an Indian citizen, you generally need to deal with the loss of Indian citizenship/renunciation and surrender of the Indian passport before moving on to OCI.
VFS's current USA guidance says that people who have held an Indian passport and acquired another country's nationality are required to surrender the Indian passport. It also warns against continuing to use an Indian passport after acquiring foreign nationality.
The exact document issued and process can depend on the circumstances of the applicant, so I wouldn't treat “surrender certificate” and “renunciation certificate” as interchangeable in every situation.
For the appointment question specifically, I'd check the current VFS portal after selecting your jurisdiction. Their current USA system explicitly offers a postal process and an appointment process for surrender/renunciation applications.
If you're applying because you need the certificate for a subsequent OCI application, keep the certificate safely once it is issued. VFS also states that former Indian nationals applying for OCI need the relevant renunciation/surrender documentation.