Start Your Registered Vehicle Scrapping Facility Business
Professional Guidance

A Registered Vehicle Scrapping Facility (RVSF) is an authorized unit approved by the Ministry of Road Transport and Highways (MoRTH) to scientifically scrap old, unfit, or deregistered vehicles.

These facilities follow standardized processes for de-pollution, dismantling, material segregation, and digital de-registration of vehicles from the VAHAN database.

Why RVSF Business Is Gaining Momentum

India generates millions of end-of-life vehicles annually. Earlier, this market was largely unorganized. With the Vehicle Scrappage Policy, scrapping has become:

• Mandatory for certain vehicle categories

• Digitally tracked

• Environmentally regulated

• Linked with incentives for vehicle owners

This shift has transformed RVSF into a structured, government-recognized business model.

Eligibility & Business Setup Requirements

To establish an RVSF, the promoter must ensure:

• Legally registered business entity (Company / LLP preferred)

• Adequate land area as per category (Category 1 or 2)

• Financial capability for plant & machinery

• Compliance with safety and environmental norms

Authorities assess technical, financial, and operational readiness before granting approval.

Licensing & Regulatory Approvals

RVSF setup requires multiple statutory approvals, including:

• RVSF Authorization from State Transport Department

• Consent to Establish (CTE) & Consent to Operate (CTO) from State Pollution Control Board

• Fire & safety clearances

• Local trade and municipal permissions

Each approval is interlinked—procedural accuracy directly impacts timeline.

Technology & Operational Process

An RVSF must follow a scientific scrapping workflow, including:

• Vehicle intake & verification

• De-pollution (fuel, oil, coolant, battery removal)

• Dismantling & segregation (ferrous, non-ferrous, plastics)

• Issuance of Certificate of Deposit (CoD)

• Digital vehicle de-registration

Automation and compliance-driven SOPs significantly improve efficiency and audit readiness.

Revenue Streams in RVSF Business

An RVSF generates income from multiple channels:

• Sale of scrap metals (steel, aluminum, copper)

• Sale of reusable components (where permitted)

• Processing fees from vehicle owners

• Bulk contracts with fleet operators & PSUs

Profitability depends on volume handling, recovery rates, and logistics optimization.

Compliance & Risk Management

RVSF operators must maintain strict compliance in:

• Hazardous waste handling

• Employee safety & labour laws

• Digital reporting to transport authorities

• Environmental audits

Non-compliance can lead to license suspension, penalties, or blacklisting—making professional oversight essential.

How Leegal Supports RVSF Businesses

Leegal provides end-to-end RVSF consultancy, covering:

• Feasibility & category assessment

• Licensing & statutory approvals

• Pollution & environmental compliance

• Contract drafting & vendor agreements

• Post-authorization compliance management

We align legal structure, operational design, and regulatory strategy to ensure long-term viability.