The Hidden Challenge Behind “Going Green”
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.
Understanding MoRTH Vehicle Scrapping Authorization
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.
Why This Authorization Matters
- It provides legal authority to purchase and dismantle end-of-life vehicles (ELVs).
- Enables access to the Vahan/Parivahan portal for generating Certificates of Destruction (CoD).
- Makes you eligible for OEM partnerships and compliance-linked incentives.
- Protects your business from fines, shutdown orders, or blacklisting.
Eligibility Criteria & Infrastructure Requirements
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:
1. Land & Location Norms
- The facility should be located in an industrial zone or designated recycling cluster.
- Minimum plot size recommended: 4,000–6,000 sq. m. for light vehicles.
- Should have pucca flooring, drainage, and leak-proof areas for fluid handling.
- Must include stormwater channels and a clear road for vehicle entry and exit.
2. Environmental & Safety Clearances
- Obtain Consent to Establish (CTE) and Consent to Operate (CTO) from the State Pollution Control Board (SPCB).
- Prepare a Hazardous Waste Management Plan as per CPCB guidelines.
- Ensure compliance with fire safety standards and obtain a Fire NOC.
- Install pollution control systems and oil separators to prevent soil and water contamination.
3. Technical & Operational Infrastructure
- Depollution System: For safe removal of fuel, oils, and batteries.
- Dismantling Line: Mechanical or manual system to segregate metals, plastics, and glass.
- Shredder/Baler: To compress and manage scrap metal.
- CCTV Cameras: Continuous recording of dismantling areas (30 days retention).
- IT System Integration: Link with Parivahan Portal for issuing CoDs.
Step-by-Step Authorization Process for RVSF (2025 Updated)
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.
Required Documents for RVSF Registration
| 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 |
Fees, Validity, and Renewal
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.
Key Compliance Conditions After Registration
Operating an authorized scrapping plant comes with ongoing responsibilities:
- Maintain digital records of all vehicles scrapped, along with Certificate of Destruction (CoD) numbers.
- Submit quarterly and annual returns through the Parivahan portal.
- Ensure safe storage and disposal of oils, batteries, airbags, and electronic components.
- Avoid dealing with unregistered collectors or dismantlers.
- Facilitate inspection by CPCB or Transport Department officers whenever requested.
Failure to follow these norms can lead to suspension or revocation of license and penalties under the Environment Protection Act.
Common Mistakes to Avoid
- Uploading unclear or inactive geo-tagged videos of machinery or layout.
- Providing mismatched addresses across GST, CTE/CTO, and application forms.
- Omitting the Self-Declaration on Occupational Health & Fire Safety.
- Using machinery without pollution control certification.
- Not training staff on depollution and dismantling safety protocols.
A single missing document can hold up your authorization for weeks — or worse, lead to rejection.
Business Perspective: A Success Story
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.
Benefits of Early Authorization
- Recognition as an official Authorized Vehicle Scrapping Facility (RVSF)
- Eligibility to participate in government and OEM scrapping tenders
- Access to state-level incentives (rebates, subsidies, tax benefits)
- Streamlined issuance of CoDs on the Parivahan portal
- Confidence for investors, buyers, and environmental auditors
Being authorized doesn’t just keep you compliant — it makes your business more credible, visible, and profitable.
Conclusion – Simplify Your MoRTH Compliance Journey
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
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FAQs
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.
