You are currently viewing Setting up Registered Commercial Vehicle Scrapping Facility in India – Everything You Need to Know

Setting up Registered Commercial Vehicle Scrapping Facility in India – Everything You Need to Know

  • Post author:
  • Reading time:7 mins read

At present, having Commercial Vehicle Scrapping Facility has various perks that benefit not only humans but also mother nature. Yes, you’ve read that right. The recently announced vehicle scrapping policy in India will likely bring about a significant change in the automobile industry. Wondering how? Well, the policy entails generating demand for new vehicles, precisely, for commercial vehicles. The Union State governments and the Automobile companies will have to come together to emerge as winners in building the ecosystem consisting of the scrap yards and fitness centers to test commercial vehicles. The same policy specifies that both – the State governments and Automobile companies are required to incentivize people for commercial vehicle scrapping in India.

This new policy will lead to the below-projected gains in the coming time – 

  • The Indian Automobile Industry is likely to experience a 30% boost in turnover (from Rs. 4.5 lakh crore to Rs. 10 lakh crore) in the coming years.
  • There will be an increase in the availability of scrapped metals/materials such as steel, aluminum, rubber, plastic, etc. These materials will then be used to manufacture automobile parts, leading to a 30-40% cost reduction.
  • The present Rs. 1.45 lakh crore export component is likely to rise to Rs. 3 lakh crore.
  • Decrease in India’s crude import bill.
  • Attractive new investments (Rs. 10,000 crores.)
  • Job Creation – as many as 35,000 jobs.
  • Advanced technologies will give a better mileage to the vehicles, other benefits and also contribute to reducing air pollution.

Car srapping in India wasn’t a big thing until some time back. Also, having a car scrap yard wasn’t that lucrative due to the lack of awareness among the people. But now, with foreseeable gains in this sector, setting up a Registered Commercial Vehicle Scrapping Facility is a no-brainer if you have a plan. We have talked enough about the benefits; now, allow us to guide you about how to get started!

A Guide – Setting up a Commercial Vehicle Scrapping Facility in India in 2021

The Ministry of Road Transport and Highways has notified a draft that lists the rules for setting up a Registered Vehicle Scrapping Facility (RVSF.) These rules lay down the complete procedure – from Authorization to Operation – for setting up the RVSF. 

For now, let us take you through some helpful information about how the Government will intervene in the process – 

  • The Indian Government plans to develop a single-window clearance portal on which the concerned person can apply with the required documents and fees.
  • The State/UT Governments will clear the proposals in a window period of 60 days.
  • The application process has been put forth with a motive to make it seamless, time-bound, and transparent for the registration, inspection, and audit of the concerned RVSF.
  • These rules also specify the technical procedures and requirements for setting up RVSF that need to be followed by any legal entity.
  • Taking Cyber Security Certifications will be a must for RVSF for safe access to the VAHAN database.
  • The registration will be for an initial period of 10 years for an RVSF. It will be renewable for only 10 years at a time.
  • Besides having Certified Equipment for de-risking, de-polluting, and dismantling an End of Life Vehicle, the RSVF will also require to comply with relevant safety and health regulations and environmental norms laid down by CPCB/SPCB and MoEF&CC for smooth operations.
  • Suppose the RVSF fails to possess the adequate capability for recycling hazardous waste (like batteries, e-waste, recovery of earth metals, etc.). In that case, such materials need to be sold duly to authorized recyclers.

Additional Recycling Procedures for RVSFs

  • The respective RVSFs will be provided with access to the VAHAN databases.
  • RVSFs shall also be authorized to make the required entries regarding – Scraping of Vehicles and Issuance of Scrapping Certificates.
  • They will be given access to the NCRB and Police database, so verification of stolen vehicles or vehicles involved in any criminal activity becomes easier before RVSFs scrap a vehicle.
  • After verifying the original documents and records of the vehicle, the representative/owner of the vehicle will be issued the ‘Certificate of Deposit’ by the respective RVSF. 
  • The ‘Certificate of Deposit’ can be used by the vehicle owners to avail perks and incentives on the purchase of a new vehicle.
  • The RVSF will also be required to safely keep the custody of the cut piece of ‘Chassis Number’ for a tenure of 6 months from the date of issuance of the ‘Certificate of Vehicle Scrapping.’
  • They will be obliged to maintain a copy of the relevant documents as a record for examination during the audits.

Currently, India has limited authorized Scrappage Centres and automated Fitness Test Centres, and this is inadequate to cater to the vast market size. Having a car scrap yard in such a market will entail many benefits to the scrapyard owners. Hence, Scrap Yard India aims to build a reliable and smart system to make vehicle/car scrapping in India seamless. 

For more information on vehicle/car scrapping in India, get in touch with Scrap Yard India’s knowledgeable team for a detailed consultation. 

About Scrap Yard India 

Scrap Yard India is India’s 1st algorithm-based digital platform for the Valuation and Sale of Scrap Vehicles and ELVs. SYI’s Management Solutions (SYIMS) is a step towards building ‘Smart Scrapyards for the Smart Generation,’ and will help you stay way ahead in the competition. From Planning, Procurement, and Installation to Training, Production, and Compliance – we do it all!

We understand the importance of a profitable process and the challenges of a sustainable Industrial environment. So we not only believe in promoting our products but also providing pro-active services effortlessly, at the comfort of your home.

The team at SYI aims to take the overall vehicle recycling game to the next level. We moved ahead in our journey with a motive to build a sustainable environment and to make people aware of how a legitimate vehicle scrapping process can help them save energy and obviously a good amount of money. Over the years, we have successfully helped PAN India citizens to get their vehicles scrapped seamlessly. 

SYI has been trusted by its customers for being a reliable platform to locate Registered/Authorized Vehicle Scrap Facilities (RVSF/AVSF) all across India. Our transparency in scrap vehicle handling and promotion of the safe operating practice has further helped us gain trust and strengthen our roots.

To book a consultation with us or to understand more about the process of setting up a Registered Commercial Vehicle Scrapping Facility, get in touch with us today.

A message from SYI’s team – Reduce, Recycle, Repeat!

Keywords: Car Scrap Yard | Car Scrapping in India | Commercial Vehicle Scrapping 


Leave a Reply