Vehicle Scrapping Plant Layout & Machinery Requirements

Ravi Mehta, the founder of EcoSteel Recyclers Pvt. Ltd., had spent decades watching old trucks rust away in his family’s transport yard on the outskirts of Pune.
When the government rolled out the Vehicle Scrappage Policy in 2021, he realized that what used to be “junk” could become a regulated and profitable business — if only he could understand how to design a compliant scrapping plant.

Like many entrepreneurs, Ravi soon discovered that success was not just about getting a license. It was about creating a scientifically designed plant, choosing the right machinery, and aligning every operation with India’s environmental and safety norms.

This article breaks down exactly what a modern scrapping facility looks like, what it needs, and how compliance translates into profitability.

What Is an Authorized Vehicle Scrapping Facility (RVSF)?

An Authorized Vehicle Scrapping Facility (RVSF) is the only type of yard legally allowed to dismantle and recycle end-of-life vehicles (ELVs) in India.
It operates under the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021, and must register through the state transport department or MoRTH portal.

An RVSF’s job is not simply to crush cars — it must:

• Verify each vehicle’s details through VAHAN and issue a Certificate of Destruction (CoD).
• Depollute every unit by safely removing fluids, batteries, and air-conditioning gases.
• Segregate and store reusable components separately from hazardous waste.
• Maintain ISO 9001, 14001, and 45001 certifications within 12 months of operation.
• Deposit a ₹10 lakh security with the authority before beginning operations.

In short, an RVSF is a controlled industrial unit that treats every vehicle as a resource — not waste.

How a Compliant Scrapping Plant Is Laid Out

A good plant layout ensures that vehicles move smoothly through the entire process without crossing paths or contaminating clean zones.
Below is a typical sequence of operations for a facility handling around 25 vehicles per day (approximately one acre of land).

Process Zone	Key Activities	Core Equipment	Suggested Area
1. Vehicle Reception & Verification	Vehicle check-in, registration via VAHAN, weight recording, tagging	Weighbridge, RFID scanner, admin office	~200 m²
2. Depollution Bay	Drain fuel, oil, coolant, brake and AC fluids, remove battery	Hydraulic lifts, multi-fluid extraction rigs, spill-proof floor	~250 m²
3. Dismantling Zone	Detach tyres, glass, plastics, catalytic converters, airbags	Pneumatic tools, hoists, cutting sets, workbenches	~300 m²
4. Segregation & Storage	Separate ferrous, non-ferrous, plastics, electronics, hazardous items	Color-coded bins, pallet racks, ventilated containers	~250 m²
5. Metal Processing Bay	Shred or compress body shells for shipment to recyclers	Baler press (200 T), shear (600 T), shredder (1 MT/hr)	~400 m² + open yard
6. Hazardous Waste Room	Temporary storage of fluids, batteries, and filters	Double-lined drums, bunded floor, exhaust fans	~100 m²
7. Dispatch & Documentation	Final weighing, CoD generation, scrap dispatch	Computer terminal linked to MoRTH portal	~150 m²

The goal is simple: linear movement from reception to dispatch without any backward flow of vehicles or waste.

Machinery Requirements and Investment Outlook

Choosing the right machinery depends on throughput and desired automation.
Below are indicative configurations used by Indian RVSFs today.

Capacity Tier	Typical Throughput	Key Machinery	Power Load	CapEx Range
Small Facility	10 vehicles / day	Manual lift tables, single depollution rig, baler (100 T), basic shear (300 T), air compressor, safety gear	60–80 kW	₹6–8 crore
Medium Facility	30 vehicles / day	2-post lifts × 4, automatic fluid extractor, crane, baler (200 T), rotary shear (600 T), shredder (1 MT/hr)	120–150 kW	₹10–15 crore
Large Facility	60 vehicles / day	Integrated depollution line, guillotine shear (1000 T), multi-chamber shredder, ETP, forklifts, automated conveyor	200–250 kW	₹18–25 crore

Indian manufacturers such as Advance Hydrautech, Super Recycling Solutions, and Global Green Tech Systems have developed turnkey equipment packages tailored for RVSFs.
Most facilities prefer modular machinery so they can expand capacity without changing the entire layout.

Integrating Compliance With Operations

Every RVSF must align three regulatory pillars:

Regulation	Authority	Key Focus	Why It Matters
Motor Vehicles (RVSF) Rules 2021	MoRTH	Registration, ISO deadlines, security deposit	Legal foundation for facility approval
AIS-129 Guidelines	MoRTH / ARAI	Safety standards, employee welfare, record keeping	Used by inspectors to rate operational safety
CPCB ELV Guidelines 2023	CPCB	Environmental safeguards, waste routing, EPR linkage	Basis for pollution-control compliance

An audit-ready plant keeps updated logs of every vehicle processed, waste transferred, and certificate issued.
Integrating this data digitally with the MoRTH portal ensures faster renewals and transparency with regulators.

Business Economics: Where the Returns Come From

A compliant scrapping plant is both an environmental and a financial model.
Major revenue streams include:

1. Ferrous metal recovery — roughly 65–70 % of a vehicle’s weight can be sold to steel mills.
2. Aluminium and copper parts — wiring, alternators, and radiators provide high-value non-ferrous scrap.
3. Component resale — tyres, seats, glass, and electronics can be refurbished or sold for reuse.
4. EPR credit trading — certified disposal data can contribute to producers’ extended-responsibility targets.

Operating costs mostly include manpower, energy, rent, and waste-handling fees.
With efficient layout and modern balers, many medium-sized RVSFs recover their investment within four to five years.

Common Compliance Risks and How to Avoid Them

Issue	Possible Outcome	Prevention
Running operations before RVSF approval	Suspension of license	Apply early and track MoRTH status online
Poor containment of fluids	Environmental Compensation penalties	Use bunded floors and certified storage tanks
Using unregistered recyclers for hazardous waste	Rejection of annual return	Partner only with CPCB-listed recyclers
Delayed ISO certification	Renewal delays or cancellation	Begin ISO audit parallel to construction
Improper record-keeping	Legal notices under MV Act	Automate daily logs and CoD generation

Consistency and documentation are your best insurance against regulatory action.

Lessons From the Field

A useful reference is the MSTI (Maruti Suzuki Toyotsu India) facility in Noida.
Commissioned in 2021, it can handle about 2,000 vehicles per month and recovers nearly 95 % of each vehicle’s material.
Its design follows a clear one-way flow, with covered depollution bays, online CoD issuance, and in-house shredding.
This model demonstrates that strong compliance and efficiency can go hand in hand.

Why Early Planning Saves Money

Building the facility right the first time prevents redesigns and downtime later.
During planning:

• Involve your CPCB-recognized environmental consultant early.
• Finalize land use approvals before machinery purchase.
• Keep EPR partnerships (for batteries, plastics, oils) ready before the first car arrives.
• Align civil design with fire safety and hazardous-storage norms to avoid rework.

Conclusion

A modern scrapping plant is more than a scrapyard — it’s a controlled industrial process that supports India’s circular economy.
By combining smart layout design, the right machinery, and strict adherence to the Vehicle Scrappage Policy, entrepreneurs like Ravi Mehta are turning environmental responsibility into profitable business.

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