When AutoGreen Recycling Pvt. Ltd., a small automotive dismantler in Faridabad, decided to formalize its operations, the founders assumed getting a scrapping license would be as simple as registering a company. But when their MoRTH application was rejected twice due to missing environmental documents, they realized setting up an authorized Vehicle Scrapping Facility (RVSF) requires both business planning and deep regulatory awareness.
If you’re an entrepreneur, recycler, or automotive business exploring this opportunity, this guide will walk you through the official MoRTH authorization process, eligibility requirements, documentation, fees, and compliance standards — in simple, business-friendly terms.
India’s Vehicle Scrappage Policy (V-VMP), launched in 2021, aims to eliminate unfit, polluting vehicles while promoting recycling and circular economy practices.
Under this framework, the Ministry of Road Transport and Highways (MoRTH) has established detailed rules — officially known as Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021.
Every vehicle scrapping facility in India must now be registered as a Registered Vehicle Scrapping Facility (RVSF) through MoRTH and the respective State Transport Department.
Setting up a scrapping plant isn’t just about space — it’s about structured compliance. Before applying for authorization, ensure that your facility meets the following MoRTH-approved parameters:
The process is centralized under MoRTH and routed through State Transport Departments. You can apply directly via the National Single Window System (NSWS) or through your State’s Transport Portal.
| Stage | Authority / Portal | Key Actions & Documents | Typical Timeline |
|---|---|---|---|
| 1. Preparation & Site Compliance | Applicant / SPCB | Secure land title, prepare layout plan, get CTE & CTO, Fire NOC, and upload geo-tagged visuals | 15–20 days |
| 2. Online Application on NSWS or MoRTH Portal | NSWS → “Vehicle Scrapping Facility” | Fill forms, upload documents, machinery details, self-declaration on safety and environment | 1 day (submission) |
| 3. Scrutiny by State Transport Department | RTO / MoRTH | Application review, document validation, communication of deficiencies | 7–10 days |
| 4. Site Inspection or Virtual Verification | Transport Dept. + SPCB | Physical/virtual visit to confirm infrastructure, machinery, and CCTV | 10–15 days |
| 5. Grant of Authorization Certificate | MoRTH / Transport Commissioner | Approval issued digitally; validity: 5 years | ~30 working days total |
Insight: Incomplete or mismatched documents are the most common cause of delay. Keep all supporting files (CTE/CTO, GST, PAN) consistent in address and entity name.
| Category | Documents Needed |
|---|---|
| Company Documents | PAN, GST, CIN/Udyam Registration, Partnership Deed (if any) |
| Land & Building Proof | Ownership deed / lease agreement, land use permission |
| Environmental Compliance | CTE, CTO, Hazardous Waste Authorization, Fire NOC |
| Facility Evidence | Geo-tagged photos, layout plan, video of dismantling and storage areas |
| Technical Information | Machinery list with make, model, and capacity |
| Declarations | Self-declaration on worker safety, fire prevention, and authenticity of data |
While MoRTH hasn’t fixed a uniform fee nationwide, most states have adopted a model similar to CPCB’s environmental authorization structure.
| Type of Application | Typical Fee Range (₹) | Validity Period |
|---|---|---|
| New RVSF Authorization | ₹15,000 – ₹25,000 | 5 Years |
| Renewal | 50% of base fee + inspection cost | 5 Years |
| Modification/Amendment | ₹3,000 – ₹5,000 | Balance term |
After approval, the authorization certificate is issued digitally with a unique RVSF code, which must be displayed prominently at the facility and on all official communications.
Operating an authorized scrapping plant comes with ongoing responsibilities:
Failure to follow these norms can lead to suspension or revocation of license and penalties under the Environment Protection Act.
A single missing document can hold up your authorization for weeks — or worse, lead to rejection.
A Lucknow-based startup, EcoScrap India Pvt. Ltd., applied for RVSF authorization in early 2024.
By completing all state-level approvals through the National Single Window System, uploading operational videos, and aligning its layout with AIS-129 standards, the team secured authorization within 26 working days. The early approval allowed them to partner with a major automobile OEM for end-of-life vehicle processing — turning compliance into a business advantage.
Being authorized doesn’t just keep you compliant — it makes your business more credible, visible, and profitable.
The future of the auto recycling industry in India is green — but also regulated. Setting up a compliant RVSF involves coordination across MoRTH, SPCB, and local authorities. For entrepreneurs, the key to success lies in early preparation and expert guidance.
Partnering with a compliance specialist ensures your paperwork, plant design, and inspection readiness are aligned from day one.
Talk to Green Permits Consulting
📞 +91 78350 06182 | 📧 wecare@greenpermits.in
Book a Consultation to get your RVSF authorization done smoothly.
It is the official license issued by MoRTH to operate a Registered Vehicle Scrapping Facility as per the 2021 Rules.
Typically 25–30 working days after submission of complete documents and site verification.
Follow AIS-129 (ELV) for recyclability and CPCB ELV Guidelines for pollution control and safe dismantling.
Yes, the National Single Window System (NSWS) integrates with state transport departments for RVSF applications.
Five years from the date of issue, renewable upon inspection and fee payment.
