RVSF vs Scrap Dealer License: What's the Difference?
Both let you deal in scrap, but only one lets you legally scrap an end-of-life vehicle — the difference matters for compliance.
RVSF (Registered Vehicle Scrapping Facility) and a general scrap dealer license are often confused, but they authorize fundamentally different activities under Indian law.
Scope of Authorization
| RVSF License | Scrap Dealer License |
|---|---|
| Authorizes deregistration and scientific dismantling of end-of-life vehicles | Authorizes buying/selling of general metal, plastic or industrial scrap |
| Issued by state transport department + PCB | Issued by municipal/state trade authorities |
| Requires depollution & shredding infrastructure | No vehicle-specific infrastructure required |
Why the Distinction Matters
Scrapping a vehicle without RVSF authorization is not legally recognized — the vehicle owner cannot get a valid Certificate of Deposit needed to claim scrappage incentives, and the facility itself can face penalties for unauthorized vehicle dismantling.
Frequently Asked Questions
Can a scrap dealer also become an RVSF?
Yes, but it requires a separate RVSF application with the additional infrastructure and pollution clearances — an existing trade license alone isn't sufficient.
Do I need both licenses to run a full scrap business?
If your business handles both general scrap and end-of-life vehicles, you typically need both authorizations for full legal coverage.
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