Overview of Registered Vehicle Scrapping Facility RVSF License
Automotive industry is growing at a very fast pace in India and is ranked amongst the top twenty automotive markets of the world. The country is also faced with several difficulties regarding the collection and final disposal of ELVs. In order to counter these difficulties Indian government has come up with some numeric of policies and measures for vehicle scrapping thus involves the recycling of the used vehicles in which specific units are stripped and useful parts are reclaimed and the remainder is disposed as scrap materials such as the metals, plastics, rubbers. With focus on the achievement of the National Automobile Scrappage Policy, the plan of setting up of Registered Vehicle Scrapping Facility (RVSF) is being implemented.
The market of vehicle scrapping in India is regulated by Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, which were issued in 2021 and amended in 2022. They are meant to lay down the foundation of the establishment of the facilities for scrapping of vehicles particularly issues of environment and safety.
Benefits of Vehicle Scrapping Facility
- Reduction in Pollution: ELVs are managed correctly so as to prevent hazardous emissions and its repercussions on the environment.
- Resource Efficiency: Metals and materials from scrapped vehicle can be recycled; this act helps in the conservation of the natural resources and energy.
- Economic Opportunities: The building of ‘scrapping’ facilities has a positive outlook for the business world by offering new market frontiers for recycling firms and employment in automobile companies.
- Cleaner Roads: The removal of old vehicles in the society implies an enhancement of the traffic safety and the quality of the roads.
Meaning of Important terms-
As the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021
End-of-Life Vehicle- means all vehicles which are no longer validly registered or declared unfit through Automated Fitness Centers or their registrations have been cancelled under Chapter IV of the Act or due to an order of a Court of Law or are self-declared by the legitimate registered owner as a waste vehicle due to any circumstances.
Registered Vehicle Scrapping Facility- means any establishment which holds a Registration for Vehicle Scrapping issued under these rules for carrying out dismantling and scrapping operations
Scrapping means the entire process from receipt and record of the End-of-Life Vehicles‘ including depolluting, dismantling, segregation of material, safe disposal of non-reusable parts, and issuance of Certificate of Vehicle Scrapping to the registered owner of a motor vehicle
Documents Required for RVSF License Registration
To register as a vehicle scrapping facility, the following documents are typically required:
- Business registration certificate
- Proof of ownership or lease agreement for the facility premises
- Environmental clearance certificate
- Pollution control board approval
- Fire safety certificate
- Insurance documentation
- Tax registration documents
- Bank account details
- Detailed business plan
Powers and duties of Registered Vehicle Scrapping Facility RVSF License
- The Registered Vehicle Scrapping Facility shall be provided connectivity and access to the VAHAN database of vehicle registration with password protected user ID and shall be authorised to make suitable entries regarding scrapping of the vehicle and issuance of Certificate of Deposit and Certificate of Scrapping, either directly or through their collection centre.
- The Registered Vehicle Scrapping Facility must have necessary cyber security certifications for the IT Systems for safe access to the VAHAN database.
- The Registered Vehicle Scrapping Facility shall be provided the necessary connectivity to verify the records of the vehicles produced for scrapping with the database of the stolen vehicles, held by National Crime Records Bureau as well as with the local Police and it shall be duty of the Registered Vehicle Scrapping Facility to carry out such verification before scrapping a vehicle.
- The Registered Vehicle Scrapping Facility shall undertake verification of the persons handing over the vehicle for scrapping to determine the bonafide of the vehicle owner or his authorised representative and retain a copy of the same for record for a minimum period of six months.
- The Registered Vehicle Scrapping Facility shall be recognised as Facilitation Centre as per clause (cd) of rule 2 of the Central Motor Vehicles Rules, 1989 for Registered Vehicle Scrapping Facility purpose only.
Eligibility criteria for Registered Vehicle Scrapping Facility RVSF License
- Legal entity with required documents (incorporation, GST, PAN)
- Applied for/has consent to establish from state authority
- Meets CPCB guidelines for collection and dismantling
- Competent staff and equipment for safe operations
- Commits to obtain ISO certifications within 12 months
- Obtains consent to operate from State Pollution Control Board within 6 months
- Complies with labor laws and regulations
- Has adequate land in orange category industrial zone
- Possesses necessary cyber security certifications
- Provides approved plant layout and building plan
Registration procedure for Registered Vehicle Scrapping Facility RVSF License
- Applicant submits Form-1 to Registration Authority with:
1. Rs. 1,00,000 non-refundable processing fee
2. Rs. 10,00,000 earnest money deposit or bank guarantee
- Registration Authority decides within 60 days
- Accepted applications receive Form-1A certificate
- Rejected applications get earnest money refunded
- Central Government to develop Single Window Clearance portal
- State/UT Government to clear proposals within 60 days
- Portal to be operational within 6 months; manual processing until then
- Post-portal launch, all approvals and reports through portal
- Necessary approvals from various departments via portal
- State/UT to publish Citizen's Charter and approval procedure on portal
- Process to be transparent, with all forms and guidelines available online
Validity and renewal of Registered Vehicle Scrapping Facility RVSF License
- The registration issued under rule 6 shall be valid for an initial period of ten years, which shall be renewable for another ten years at a time, subject to the condition that the Registered Scrapper has not been in default of the provisions as specified in rule 14.
- An application for renewal of registration may be made three months before expiry of such registration.
- Application for renewal shall be in Form-1 and shall carry such renewal fee and security deposit as may be specified by the State or Union territory Government for this purpose.
- The renewal of registration shall be issued as per Form-1A.
- The registration issued under this rule shall not be transferable.
Criteria for scrapping of vehicles
- Vehicles without renewed Registration Certificates
- Vehicles lacking a valid fitness certificate
- Self-certified scrap vehicles damaged by disasters or accidents
- Government-declared obsolete or beyond-repair vehicles
- Vehicles bought at auction for scrapping
- Self-certified end-of-life vehicles from various industries
- Manufacturing rejects, prototypes, and damaged or unsold vehicles certified by manufacturers
- Impounded, abandoned, or auctioned vehicles from enforcement agencies
- Any vehicle voluntarily offered for scrapping by the owner
Scrapping Procedure- As per rule 10 of the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021
1. Vehicle handover: The owner or authorized representative submits the vehicle with Form-2 to a Registered Scrapper or Collection Centre.
2. Verification: The scrapper verifies the vehicle's registration, ownership, and checks for any stolen vehicle records or police cases.
- Required documents: The owner must provide original documents including the Certificate of Registration, authorization, and other relevant papers.
1. Additional documentation: Self-certified copies of various personal documents are required from the owner or representative.
2. Processing: The scrapper defaces the Registration Certificate, issues a Certificate of Deposit, and facilitates vehicle deregistration.
3. Benefits: The Certificate of Deposit can be used to avail incentives for purchasing a new vehicle.
- Payment: The scrapper pays the agreed amount to the vehicle owner.
- Record keeping: The scrapper maintains physical and digital records of all documents and transactions.
1. Environmental considerations: Proper disposal of hazardous materials and fluids is ensured as per guidelines.
2. Digital tracking: The entire process is linked to the VAHAN database for pan-India coordination.
3. Chassis number: The cut piece of the chassis number is kept for six months.
- Scrapping register: A digital register of scrapped vehicles is maintained in Form-3.
Issuance of Certificate of Vehicle Scrapping.- (1) The Registered Scrapper, after completing the necessary treatment, shall issue a digital Certificate of Vehicle Scrapping including a digital photograph of the cut out of the chassis, in Form-4 to update the national register, VAHAN Database and inform the competent authority of the State Government or Union territory Government for updating of records.
Regulations and Requirements for Scrapping Yards and Collection Centres, which are facilities designed to handle and process End-of-Life Vehicles (ELVs) and other scraps-
1. Facility Requirements:
- Adequate space for vehicle movement and storage
- Gated area with radiation measuring capability
- Dry areas with impermeable surfaces and proper drainage
- Fire protection systems and pollution control measures
- Equipped with depollution systems, preferably zero discharge
2. Operational Standards:
- Use of material handling machines to minimize human intervention
- Engagement of competent and trained manpower
- Compliance with health, safety, and environmental regulations
- Accreditation with ISO 9001, 14001, and 45001 within 12 months of operation
3. Equipment and Infrastructure:
- Certified de-polluting and de-risking equipment
- Appropriate dismantling equipment
- Designated areas for storing segregated scrap and hazardous waste
- Material handling equipment for safe transportation
- Industrial-grade lighting, ventilation, and noise control systems
4. Waste Management:
- Proper handling of automotive hazardous waste
- Collaboration with authorized recyclers for materials outside their scope
- Maintenance of transaction records for auditing purposes
5. Collection Centres:
- May be established separate from Scrapping Yards
- Must meet the same requirements if performing depollution and dismantling activities
Audits and Certifications:
- Conducted by the Registration Authority to ensure compliance with rules
- Can be performed by agencies specified in rule 126 of Central Motor Vehicles Rules, 1989
- Include regulatory and compliance audits, as well as audits of mass flow statements (Form-3)
1. Audit Report:
- Grades and evaluates the facility's performance
- Assesses adherence to health, safety, regulatory, business, environmental, and labor standards
- Evaluates recycling rates based on Form-3 information
2. Reporting Requirements:
- Annual audit report to be uploaded on the portal by May 31st (within two months of financial year-end)
- Covers a full financial year or part thereof
3. Non-compliance:
- Issues must be resolved within two months of the audit report
- Extension of up to one month may be granted by the Registration Authority
4. ISO Certifications:
- Must be revalidated at least three months before expiry
Appeals:
- Any person aggrieved by an order passed under sub-rule (5) of rule 9, of the Registration Authority may within thirty days of the date of receipt of such order, appeal to the Appellate Authority.
- The Appellate Authority shall dispose the appeal within thirty working days from the date of appeal.
How Whizseed can help?
Whizseed serves as a comprehensive platform where potential experts provide detailed information including eligibility criteria, registration procedures, and compliance requirements.
Our website provides up-to-date information on compliance with environmental, safety, and labor regulations. We help operators understand the standards required for maintaining and renewing their registration.
We offer step-by-step guidance and one stop solution on the registration process for establishing an RVSF.
