Authorised Vehicle Scrapping Facility (AVSF) Setup

Introduction

Ageing vehicles is not only a hazard to road safety but it also posses a harm to environment, that impact air quality, city congestion etc. As India is a land to millions the government of India has introduced the Vehicle Scrappage Policy 2021 to handle the issue, as per the policy the vehicles which are unfit and end of life vehicles must be destroyed in a scientific and environmentally approved manner. The development of Authorised Vehicle Scrapping Facilities (AVSFs) has been encouraged by the Ministry of Road Transport and Highways (MoRTH), in collaboration with state governments and private entrepreneurs.

In compliance with AIS 129 and MoRTH’s Standard Operating Procedures (SOPs) the AVSFs which is a registered units dismantle, depollute, and recycle vehicles. The policy is applicable to all vehicles over 15–20 years old and includes inducement for citizens, OEMs, and recyclers. With intensifying demand for steel, aluminium, rubber, and plastic from scrapped vehicles, this industry offers an outstanding opportunity for green entrepreneurship.

CERTILIZE is a one stop solutions as it offers start-to-end consultancy for setting up an AVSF, which includes site planning, licensing, machinery supply, plant layout, and EPR integration.

Get required Licenses and Certifications

Establishing an AVSF requires approvals from both environmental and transport departments. Below is the list of licenses that is important:

• Documents in relation to your company if it is a Proprietorship / LLP / Pvt. Ltd. Company- Gst, Pan card, Adhar card, Certificate of incorporation.
• Mandatory approval under the Scrappage Policy i.e. also called authorization
• CTE AND CTO Issued by State Pollution Control Board under Air & Water Acts
• For managing fluids, batteries, fuel, and coolants authorization under Hazardous Waste Management Rules
• Environmental Clearance (if required)
• Vahan portal registration and ownership transfer protocol
• In case company is using powered machinery then Factory License is required
• Noc from fire and safety department
• Trade License
• EPR certification for plastic and electronic component recovery.

CERTILIZE guides you step by step from filing of application to final clearance.

Name of Machinery and Estimated Cost

An AVSF necessitates automated and semi-automated arrangements for depollution, dismantling, and material segregation.

Estimated Setup Cost:

• For Basic Facility the amount will vary from ₹60 Lakhs – ₹90 Lakhs
• For Advanced Facility (with shredder) the amount will vary from ₹1.2 – ₹2 Crores

CERTILIZE gives you layout design, machinery procurement, AMC support, and equipment commissioning.

Process Flow – Vehicle Recycling

• First Step- Vehicle Verification is done through Digital VIN scan via MoRTH/Vahan portal and after that Ensure ownership and de-registration documentation.
• Second Step- Depollution process takes place in which Drain fuel, engine oil, brake fluid, coolant, and gas is handle then Battery, tyre, and AC gas gets removed and segregated
• Third Step- Dismantling in which reusable part of (tyres, engine, gearbox, seats, electronics) gets removed then it gets Categorize for resale, reconditioning, or recycling.
• Fourth Step- it involves Shredding or Cutting in which the vehicles Body and chassis sheared for scrap metal extraction.
• Fifth Step- Sorting of Material takes places in which as per the category materials are sent to different industrialist like- Metals: steel, aluminium, copper sent to metal recyclers, Plastics: bumpers, dashboards sent to plastic processor, Rubber: tyres, mats sent to crumb rubber plants
• Sixth Step involves Disposal of Waste in which Hazardous waste is sent to TSDF and Batteries is sent to authorized recyclers.
• Seventh Step- in which Owner receives digital confirmation and incentives that means Issuance of Certificate in relation to Vehicle Scrapping.
• Final Step- Data gets Uploaded on Vahan Portal that includes EPR ledger, and traceability etc.

Market Summary

India has more than 2 crore end-of-life vehicles i.e. eligible for scrappage:

• 15+ year old private or commercial vehicles
• 10+ year old diesel commercial vehicles
• Deregistered or impounded vehicles

Advance Drivers:

• From April 2024 fitness test is Mandatory
• On new vehicles after scrapping 25% road tax rebate in.
• For renewal of insurance scrap certificate is necessary

Demand for Recycled Materials:

• Original equipment manufacturers or in construction Steel (auto-grade) is used
• For car parts and electrical cables Aluminium is used
• For wiring, motors, electronics purposes Copper is needed
• Tyres, crumb rubber industry needs Rubber

Buyers Include industries:

• Steel re-rollers
• Aluminium and copper smelters
• Recyclers of Tyre
• Refurbishes of Spare part

Benefits of EPR

Automobiles consist of electronic, rubber, glass, and plastic components all of these categories fall under EPR scope:

• Battery recycling that contains lead-acid, lithium-ion falls under CPCB rules
• Under PWM EPR Plastic bumper, dashboard, lamp parts are deal with
• e-waste EPR manages Headlights, ECUs, displays

As an AVSF operator, you can:

• Get yourself registered as an end-processor for EPR credit generation
• Get Partner with OEMs for responsible disposal contracts
• Make green credits and ESG recognition

CERTILIZE helps you in following manner:

• Get you Register with CPCB and brand owners
• Maintain traceability of dismantled materials
• Get your compliance done under EPR credits

Why Choose CERTILIZE?

Certilize, has years of experience in relation to plant setup and waste management compliance, our team of experts delivers:

• Setup from scratch in relation MoRTH-compliant AVSF
• layout planning and Land assessment
• Certification and licensing with SPCB/MoRTH
• operator training along with Machinery procurement
• We manage EPR credits, digital compliance, and SOP manuals

We have worked with more than 500 + clients in waste, metal, plastic, and vehicle recycling domains.

Connect with CERTILIZE – Your Vehicle Scrapping Compliance Partner

Set up your MoRTH-authorized vehicle scrapping facility with CERTILIZE by following all the protocols with ease as we help you to understand the guidelines and make your work easier.