Registered Vehicle Scrapping Facility Setup

India is home to millions of vehicles that have crossed their lifecycle — polluting the environment, consuming excess fuel, and occupying valuable space. Recognizing this, the Government of India introduced the Vehicle Scrappage Policy (2021) to promote safe, scientific, and eco-friendly dismantling of end-of-life vehicles.

This policy has created a massive opportunity for entrepreneurs, corporates, and investors to set up Registered Vehicle Scrapping Facilities (RVSFs).

At Cargo People Logistics & Shipping Pvt. Ltd., together with our sustainability-focused subsidiary Green Permits Consulting LLC, we provide end-to-end consultancy for vehicle scrapping facility setup in India. From MoRTH approvals and BIS certifications to designing dismantling plants and ensuring compliance, we help you build a profitable, future-ready business.

Turning Old Vehicles into New Opportunities

End-of-life vehicles (ELVs) are no longer just “scrap”. With the right systems, they become a reliable source of raw materials, revenue, and sustainable business growth. A well-planned vehicle scrapping facility helps you:

The Need for Vehicle Scrapping

• 1. Regulatory Compliance
  The government mandates scrapping of unfit and end-of-life vehicles (ELVs) to reduce road hazards and emissions under the Vehicle Scrappage Policy and related rules.
• 2. Environmental Benefits
  Scientific dismantling ensures safe recovery of steel, aluminium, plastic and other materials, while hazardous fluids like oils, coolants and refrigerants are handled and disposed of responsibly.
• 3. Resource Recovery & Revenue
  Recovered metals and components become valuable raw materials for manufacturing and recycling industries, creating multiple revenue streams.
• 4. Market Demand
  With the government pushing for RVSFs in every major city and making scrappage a key part of the automotive ecosystem, the demand for compliant scrapping facilities is growing rapidly.

Our Vehicle Scrapping Facility Consultancy

Through Green Permits, we guide clients at every stage of setting up and running a Registered Vehicle Scrapping Facility:

1. Feasibility & Planning

• Site selection as per MoRTH guidelines and local zoning norms.
• Feasibility report with capacity planning, capex/opex analysis and ROI projections.
• Business model advisory – standalone scrapping facility vs. integrated recycling and metal recovery.

2. Licensing & Compliance

• Support in obtaining RVSF authorization from the Ministry of Road Transport & Highways (MoRTH).
• Compliance with Central Motor Vehicle Rules (CMVR) and Vehicle Scrappage Policy norms.
• Support for BIS certification for recycled materials, where applicable.
• Approvals and consents from State Pollution Control Boards (SPCBs) and other authorities.

3. Plant Design & Machinery

• Advisory on facility layout for safe and efficient dismantling operations.
• Selection of equipment for depollution, dismantling, cutting, shredding and segregation.
• Vendor tie-ups for machinery procurement, installation and logistics support.

4. Operations Setup

• Developing SOPs for vehicle intake, verification, dismantling, and recycling.
• Workforce training for safe handling of fuels, batteries, tyres, glass and fluids.
• Implementation of Health, Safety and Environment (HSE) standards as per industry best practices.

5. Ongoing Compliance Support

• Support with CPCB/SPCB reporting and environmental compliances.
• Assistance with annual audits, renewals and tracking regulatory changes.
• Advisory on partnerships with OEMs, automobile manufacturers and authorised dealers.

Why Choose Cargo People & Green Permits?

• Specialized Consultancy – Green Permits focuses on EPR, recycling and environmental compliance.
• Logistics Backbone – Cargo People ensures smooth transport of vehicles to the scrapping facility and movement of recovered materials.
• End-to-End Support – From feasibility and approvals to plant launch and operational guidance.
• Pan-India Network – Projects supported across Delhi NCR, Mumbai, Chennai, Mundra, Kolkata and other key hubs.
• Trusted Expertise – Experience in waste management, compliance and recycling projects for diverse sectors.

How We Help – A Client Story

A group of investors in Gujarat wanted to establish a Registered Vehicle Scrapping Facility under the government scheme.

The Cargo People & Green Permits team:

• Conducted a detailed feasibility study and helped them secure land near an industrial zone.
• Obtained MoRTH authorization and SPCB approvals for the facility.
• Assisted in sourcing specialized depollution, dismantling and shredding equipment.
• Designed SOPs (standard operating procedures) for safe dismantling and recycling.

Within 12 months, the facility was operational, capable of handling 10,000+ vehicles annually — turning compliance into a profitable venture.

Our Process – Step by Step

1. Initial Consultation – Understanding your business goals, preferred location and investment capacity.
2. Feasibility Report – ROI projections, capacity planning and business model design.
3. Regulatory Approvals – RVSF authorization, SPCB clearances, BIS certification and other licenses.
4. Facility Design & Setup – Layout planning, machinery procurement, installation and commissioning.
5. Operations Training – Workforce training on safe dismantling and environmental compliance.
6. Launch & Compliance – Go-live support with ongoing regulatory guidance and reporting.

Benefits of Setting Up a Vehicle Scrapping Facility

• Meet Government Demand – Be part of the official scrappage ecosystem envisioned under the Vehicle Scrappage Policy.
• Revenue from Scrap Materials – Monetize steel, aluminium, plastic, tyres, batteries and reusable parts.
• Eco-Friendly Impact – Reduce pollution, prevent unsafe roadside dumping and recover valuable resources.
• Partnerships with OEMs – Automakers increasingly require tie-ups with authorised RVSFs.
• Sustainability Edge – Strong positioning with ESG-focused investors and global stakeholders.

Frequently Asked Questions

1. What is an RVSF?
A Registered Vehicle Scrapping Facility (RVSF) is an authorised unit approved by MoRTH to scientifically dismantle and recycle end-of-life vehicles in compliance with government rules.

2. Do I need government approval to start?
Yes. You need approvals from MoRTH, the State Pollution Control Board (SPCB) and, where applicable, BIS and other local authorities before starting operations.

3. What is the minimum investment required?
It varies from project to project. Smaller facilities may start with an investment of around ₹2–3 crores, while large integrated plants require higher capital.

4. How long does it take to set up a scrapping facility?
On average, it takes around 9–12 months including feasibility, approvals, setup and commissioning.

5. Can SMEs or private investors start a scrapping facility?
Yes. The government actively encourages both corporates and private investors to set up compliant scrapping facilities under the Vehicle Scrappage Policy.

Partner With Cargo People & Green Permits

Setting up a vehicle scrapping facility in India is not just about compliance — it’s about building a sustainable, future-ready business. With Cargo People’s logistics strength and Green Permits’ compliance expertise, you get a complete solution from approvals to operations.

Whether you are an entrepreneur, SME, or corporate, we’ll help you turn India’s scrappage policy into a profitable opportunity.

Contact us today for a free consultation on your vehicle scrapping facility setup.

📞 +91 78350 06182
📧 wecare@greenpermits.in