Enterslice Private Limited

The Central Government has notified the guidelines for setting up and operating Authorized Vehicle Scrapping Facility in India. This applies to the vehicles that are no longer validly Authorized under the Motor Vehicle Act or where the owners desire to scrap their vehicles. This facility ensures safe disposal of such vehicles along with protection of environment and promotion of legally compliant vehicle dismantling and scraping industry. Respective state/UT government grants authorization for starting RVS Facility in India.

Essential Terms in respect of Authorized Vehicle Scrapping Facility: There are certain terms that need to be understood in respect of Vehicle Scrapping:

• Authorized Scrapper: A person, firm, society, trust or company that owns and operates Authorized Vehicle Scrapping Facility.
• Authorized Vehicle Scrapping Facility: This refers to an establishment holding any authorization for vehicle scrapping issued under guidelines for performing dismantling and scrapping.
• Deposit Certificate: A certificate issued by the AVSF to recognize the transfer of vehicle ownership from the Authorized owner to the authorized scrapper.
• Vehicle Scrapping Certificate: A certificate issued by the AVSF to recognize the final disposal of vehicle. It should be preserved by the authorized scrapper.
• Scrapping Yard: Location where the dismantled parts of the vehicle are processed for treatment.

Which vehicle qualifies for scrapping: The following vehicles shall qualify for scrapping:

• Vehicles that have not renewed their original certificate of registration;
• Vehicles not granted fitness certificate;
• Vehicles damaged due to fire, riot, natural disaster, accident or any calamity and the owner self-certifies it as a scrap;
• Vehicles declared obsolete/surplus/beyond economical repair by the Central or state government;
• Vehicles that have outlived their utility or for projects in mining, highway etc.;
• Manufacturing rejects and test vehicles;
• Auctioned, impounded and abandoned vehicles.

Eligibility criteria for obtaining authorization by proposed Authorized Vehicle Scrapping Facility:There are certain eligibility conditions that have to be met in order to get authorization for treatment of end of life vehicles by respective state/UT governments. They are as follows:

• The AVSF should be owned and operated by a legal entity- whether a person, firm, society or trust established with applicable laws.
• The entity should have certificate of incorporation, valid GST registration and valid PAN.
• The entity should have applied for or should possess establishment license from the authority.
• The entity should fulfill minimum technical requirements for collecting and dismantling centres according to the pollution control board must have the workforce and equipment to perform dismantling activities.
• The entity should undertake to get required quality certifications in 12 months time of operation commencement.
• The entity should also provide approved plan layout and building plan. It should have environment management plan for the facility.

The AVSF will be provided connectivity and access to VAHAN database of the vehicle registration with a User ID and password. It must have security certifications for IT system to safely access VAHAN database.

Further, the AVSF should verify the person handing over the vehicle for scrapping in order to determine the actual owner of such vehicle. It should keep the copy of the same for minimum 6 months.

Validity and renewal of authorization: The authorization for starting RVS Facility is valid for 10 years. It can be renewed for another 10 years and the authorization is not transferable.