Setting up Registered Commercial Vehicle Scrapping Facility in India

Setting up Registered Commercial Vehicle Scrapping Facility in India

Currently, having a commercial vehicle recycling facility has several advantages that help both people and the environment. You did read that correctly. The Indian government’s newly announced policy on vehicle scrapping would probably significantly alter the auto industry. The programme calls for creating demand for new cars, specifically for commercial cars. To succeed in creating the ecosystem that includes junkyards and testing facilities for commercial vehicles, the Union State governments and the automakers will need to work together. The same policy states that incentives for commercial vehicle scrapping in India must come from both State governments and automobile manufacturers. Scrap vehicles for sale in India are seeing rise and so the policy seems to be here at the right time!

  • It is expected that the new policy can help in in the following ways to the vehicle scrapping companies in India
  • In the upcoming years, the Indian automobile industry’s revenue is predicted to increase by 30% (from Rs. 4.5 lakh crore to Rs. 10 lakh crore).
  • There will be more scrap metals and materials including steel, aluminium, rubber, and plastic available. After that, these materials will be used to produce vehicle parts, resulting in a 30–40% cost savings.
  • The current export component, which is worth Rs. 1.45 lakh crore, is anticipated to increase to Rs. 3 lakh crore.
  • reduction in India’s import costs for crude.
  • fresh investments that are appealing
  • Creating up to 35,000 new jobs.
  • Modern technologies will improve car mileage and provide additional advantages in addition to lowering air pollution.

How to set it up?

The rules for establishing a Registered Vehicle Scrapping Facility have been outlined in a draught that has been made public by the Ministry of Road Transport and Highways (RVSF.) The entire process for setting up the RVSF is outlined in these rules, from authorization to operation.

  • The Indian government intends to create a single-window clearance facility where interested parties may submit their applications along with the necessary paperwork and fees.
  • In a window of 60 days, the State/UT Governments will approve the plans.
  • The registration, inspection, and audit of the relevant RVSF have all been made easier, more visible, and time-bound by the application process.
  • These regulations also outline the technical steps and prerequisites that every legal body setting up RVSF must follow.
  • For safe access to the VAHAN database, RVSF must get Cyber Security Certificates.
  • The initial registration for an RVSF will be for ten years. Only ten years at a time will it be renewed.
  • In addition to possessing Accredited Equipment for de-risking, de-polluting, and dismantling End-of-Life Vehicles, the RSVF will need to adhere to pertinent safety and health laws, as well as environmental standards established by CPCB/SPCB and MoEF&CC, in order to run efficiently.
  • Let’s say the RVSF is unable to recycle hazardous waste in a sufficient manner (like batteries, e-waste, recovery of earth metals, etc.). Thereafter, such materials must be legally sold to licenced recyclers.

Additional Recycling Procedures for RVSFs

  • Access to the VAHAN databases will be made available to the corresponding RVSFs.
  • Moreover, RVSFs will be permitted to enter the necessary information for vehicle scrapping and certificate issuance.
  • They will have access to the police and NCRB databases, making it simpler to verify if vehicles are stolen or have been used in any criminal activity before RVSFs trash them.
  • The representative or owner of the vehicle will be given the “Certificate of Deposit” by the relevant RVSF after the original documentation and records of the vehicle have been verified.
  • Vehicle owners can use the “Certificate of Deposit” to take advantage of benefits and incentives when buying a new car.
  • For a period of six months from the day the “Certificate of Vehicle Scrapping” was issued, the RVSF must also be obligated to safely maintain custody of the cut piece of the “Chassis Number.”
  • In order to be examined during the audits, they will be required to keep a copy of the pertinent documents on file.