Authorized Vehicle Scrapping License (AVSF License) in India

Authorized Vehicle Scrapping Facility (AVSF)

An Authorized Vehicle Scrapping Facility (AVSF) allows businesses to set up a government-approved unit for the safe dismantling and recycling of end-of-life vehicles in India. This initiative has been introduced to ensure environmentally responsible disposal and promote a structured vehicle scrapping ecosystem.

Package Inclusions

• End-to-end support for setting up an Authorized Vehicle Scrapping Facility (AVSF)
• Assistance with legal and regulatory compliance
• Documentation for Consent NOC and waste management authorization
• Complete guidance throughout the approval process
• Liaising with concerned government authorities

Overview of AVSF Setup in India

The Central Government has issued guidelines for establishing and operating an Authorized Vehicle Scrapping Facility (AVSF) in India under the vehicle scrappage policy. These guidelines apply to end-of-life vehicles that are no longer fit for use or are voluntarily scrapped by owners.

An AVSF ensures the safe disposal of vehicles while protecting the environment and promoting a legally compliant vehicle dismantling and recycling industry. It supports the recovery of reusable materials and reduces environmental impact.

Approval for setting up a Registered Vehicle Scrapping Facility (RVSF) is granted by the respective State or Union Territory authorities. Businesses must comply with all regulatory requirements to operate a fully authorized and compliant scrapping facility.

What is RVSF (Registered Vehicle Scrapping Facility) ?

An RVSF is a Registered Vehicle Scrapping Facility or Authorized Vehicle Scrapping Facility   where all types of old vehicles, scrap vehicles , End of Life (ELV) vehicles which includes  two-wheelers, three-wheelers, four-wheelers, large trucks, commercial vehicles and buses are scrapped once they have completed their 15-year lifespan.

To obtain an RVSF license, permission is required from the State Pollution Control Board (SPCB) NOC and the Ministry of Road Transport and Highways.(MORTH) Registration.

Within the Vehicle Scrapping facility, all type of waste materials extracted from vehicle scrap can be managed properly and subsequently sold to authorized recyclers and manufactures, ensuring efficient waste management for the country. One who want to apply for RVSF License or want to setup RVSF Plant in India can connect with Enviroxperts team. Our team will assist and consult you regarding the documentation process and help in fulfilling the compliance part. 

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What is the process for obtaining an RVSF license in India?

The Ministry of Road Transport and Highways has established specific regulations for obtaining an RVSF(Registered Vehicle Scrapping Facility) license. A key requirement is possessing a minimum of two acres of land. This land can be designated for industrial use or classified as non-agricultural land.

Applications for this license can be submitted in any state such as Haryana, UP, Rajasthan, Uttarakhand, Gujarat, Maharashtra, or Delhi.

What documents are required to obtain an RVSF license?

To setup a registered Vehicle Scrapping Unit in India, there are basic documents required listed below 

•  GST Certificate 
• Company PAN 
• KYC Documents of Authorized Signatory
• Land Details 
• Lease Agreement (If rented Land)
• Electricity Bill Copy of Business Premises 
• CA Letter For Plant & Machinery 
• TSDF Agreement Copy 
• Layout Map of Land 
• Detail Project Report 
• Machine Details

What is the procedure for obtaining an RVSF license?

1. First, before applying for the RVSF license in a specific state, one must possess a minimum of two acres of land. This land can be located in an industrial area, or if it is agricultural land it can be converted to non-agricultural (NA) status. The land can be occupy on lease also for minimum 10 years.

2. Once the land is secured, a Detailed Project Report (DPR) must be prepared and submitted to the State Pollution Control Board (SPCB) to obtain the Consent to Establish (CTE) certificate. After that, the State Pollution Control Board will inspect the site, verify the basic parameters, and grant the CTE (Consent to Establish) certificate.

3. Once the CTE certificate is received, there would be requirement of to set up the machinery. It must include, at a minimum, a vehicle lift jack to raise the scrap vehicles. A press machine is also essential as a shredder or a bailer in which engine can be crushed.  . Additionally, all waste materials extracted during dismantling can be sell to authorized recyclers or manufacturers.

4. After installing the necessary machinery, applications for the CTO (Consent to operate) and Hazardous Waste Authorization (HWM) must be submitted to the State Pollution Control Board. The Board will then conduct an inspection, verify the required parameters, and issue the CTO and Hazardous Waste Authorization licenses.

5. Subsequently, an application is submitted to the Ministry of Road Transport and Highways, requiring a registration fee of ₹1 lakh and a bank guarantee of ₹10 lakhs. The application is filed with the respective state's Transport Department, following a review and inspection, an approved license is issued. Finally, the process moves forward to the issuance of the operational license by the Central Ministry of Transport.

What machinery is essential to install on-site to obtain an RVSF license in India?

To set up AVSF/RVSF unit and to get the RVSF license the proper setup of machinery is required. The details of machinery is listed below.

1. Shredder/ Bailing Press Machine
2. AC Gas recovery Unit
3. Vehicle Lift
4. Auto Shear Machine 
5. Oil Filter Removal Tool 
6. Suction equipment
7. Bleeding System for brake fluid 
8. Fluid collector container 
9. Windshield removal tool 
10. Draining Tray 
11. Cutter/ Cutting plier
12. Dust Collector 
13. Wet Scrubber 
14. ETP (Effluent Treatment Plant)

Can an RVSF Facility be considered a good business venture in India?

A RVSF Plant also known as a Registered Vehicle Scrapping Facility has proven to be a lucrative business in India. These facilities can handle a wide range of vehicles slated for scrapping after completing their 15 year lifespan, including three-wheelers, four-wheelers, heavy trucks, hydras, and other commercial vehicles. By effectively managing these waste generated such as crushed engines and recovered scrap materials an RVS facility can generate significant revenue by selling these materials to authorized recyclers. 

For example, when a vehicle is crushed, it yields various materials like aluminum, iron, copper, plastic, e-waste, tires, batteries, and used oil by selling these backed by proper documentation and GST compliance to authorized recyclers or manufacturers. In result of which the facility can create a profitable revenue stream.

What is the significance of EPR in the RVSF license?

EPR (Extended Producer Responsibility) has been introduced for RVSF facilities by the Central Pollution Control Board (CPCB). Under this framework, an RVSF can generate EPR credits based on the volume of scrap sent for recycling. These credits can then be sold to producers or manufacturers, creating an additional revenue stream. By integrating the EPR policy into the RVSF framework, the Government of India has provided a robust business model for RVSF facilities.

Scrap collection points for Registered Vehicle Scrapping Facility (RVSF) In India

Registered vehicle scrapping facilities in India have been entrusted with the responsibility of managing the scrapping of vehicles that are 15 years old. The key question now arises, where and how should these vehicles be collected? Details regarding this are provided below.

1. RVSF Facility can collect the scrap by involved in Auctions like in MSTC. 
2. RVSF Plant can connect with different departments like NHPC, NTPC, PWD, BHEL for the tender to collect the Vehicle scraps.
3. RVSF Facility can connect with Insurance companies also for the collection of Scrap vehicles.
4. After getting registration in MORTH, a Vehicle scrapping facility can sit on online portal of Transport to collect the scrap or ELV busses, truck for crush. 

How Enviroxperts can assist you.

If anyone in India want to set up Registered Vehicle Scrapping Facility (RVSF Plant) or in any of the state like Delhi, Uttar Pradesh, Haryana, Maharashtra, Rajasthan in that case they can connect with the Enviroxperts team. 

Our team will consult you and assist you from end to end from the initial step like what are the requirements of the land and we will assist you in terms of the due diligence of the land that it is appropriate or not for setting up a Vehicle Scrapping Facility in India, and after that we will help you in full filling the compliances and license part consulting for setting up your Authorized Vehicle Scrapping Facility. (AVSF)

Frequently Asked Question (FAQ`s)