When Rajesh, a small fleet owner in Manesar, realised his ageing diesel trucks could no longer legally enter NCR, he assumed selling them to local scrap dealers was his only option. The offers were low, the paperwork confusing, and the buyers informal. But during a visit to a friend’s workshop, he heard about Haryana’s push to formalise vehicle scrapping and the incentives being offered to set up Registered Vehicle Scrapping Facilities.

Like many business owners, Rajesh knew there was money in scrap—he just didn’t know how to turn it into a legitimate, scalable business. The opportunity was real, but the roadmap was unclear. If you relate to that situation, this guide will give you the clarity you need.

Haryana’s Auto Cluster Advantage for ELV Sourcing

Haryana forms a major part of India’s automotive and logistics ecosystem. With Gurugram, Manesar, Faridabad and industrial clusters spread across the state, thousands of vehicles reach end-of-life each month—creating a predictable supply of ELVs (End-of-Life Vehicles).

Why Haryana Naturally Generates High ELV Volumes

Haryana benefits from:

• A dense concentration of passenger vehicles, commercial fleets and corporate mobility providers.
• A strong OEM and auto-component manufacturing presence that routinely retires test vehicles and internal fleet assets.
• NCR-based restrictions on old diesel and petrol vehicles, accelerating the turnover of ageing fleets.
• Rapid urbanisation leading to high private vehicle ownership and quicker replacement cycles.

Business Impact

For an investor, this means:

• ELV supply is not seasonal—vehicles retire year-round.
• Multiple independent sourcing channels exist within close proximity.
• NCR spillover demand ensures your scrapping plant never depends on a single city.

This natural demand makes Haryana one of India’s most advantageous states to set up a modern scrapping facility.

Ideal Locations: Gurugram, Manesar, Faridabad, Rohtak

Selecting the right city is a strategic decision that impacts logistics cost, ELV inflow, land prices and regulatory ease. Here’s a practical, human-first look at the top options.

Gurugram

Gurugram is ideal for investors who want immediate access to steady ELV supply. Corporate fleets, ride-hailing operators and regular commuters generate constant scrapping demand. However, land prices are higher, so it suits medium-to-large-scale RVSFs that can handle strong volumes and negotiate institutional contracts.

Manesar

Manesar is one of India’s largest automotive hubs. If you plan to partner with OEMs or component manufacturers, Manesar offers a strategic advantage. Test vehicles, pre-production units, damaged transport vehicles and internal fleets often end up here for formal scrapping. Land costs are more reasonable compared to Gurugram, making it attractive for investors with long-term growth plans.

Faridabad

Faridabad mixes industrial clusters with massive residential catchments. Older diesel vehicles, commercial fleets and small transporters dominate the market here. If your business model includes walk-ins, dealer partnerships, and mixed ELV streams (cars, autos, vans, light trucks), Faridabad is a strong location.

Rohtak

Rohtak is emerging as a value-for-money option. Industrial growth is steady, land is affordable, and the city sits on major state and national highways. This location works best for medium-sized plants intending to serve surrounding towns as feeders.

Vehicle Procurement From OEMs, Fleets & IT Parks

One of the biggest mistakes investors make is assuming ELVs will automatically arrive once the plant opens. In reality, procurement strategy defines profitability.

Practical ELV Sourcing Channels

• OEMs and Component Manufacturers:
  These companies retire test vehicles, prototypes and internal fleets. Establishing a relationship early ensures long-term supply contracts.
• Corporate Lease Fleets & Cab Aggregators:
  Gurugram’s IT and corporate hubs operate thousands of vehicles under strict replacement cycles. These become dependable ELV inflows when offered convenient pickup and clean documentation.
• Transport & Logistics Companies:
  Haryana’s transporters retire vehicles frequently because NCR entry restrictions affect older diesel fleets.
• Government Vehicles:
  Departments phase out 15+ year-old vehicles regularly and increasingly prefer RVSFs due to compliance requirements.
• Dealerships & Local Garages:
  These stores often keep lists of customers wanting to scrap older vehicles. Building incentives into referral programs can accelerate early-stage supply.

Human Insight

Procurement is a relationship-driven activity. The more transparent your documentation, pickup process and scrap valuation, the stronger your reputation becomes.

Required Licenses: CTE, CTO, RVSF Digital Approval

Setting up a vehicle scrapping plant in Haryana involves navigating both environmental and transport regulations. Here’s a simplified explanation of what you need and why it matters.

1. Land & Building Approvals

These include:

• Confirmation that the land is permitted for industrial use.
• Building plan approvals.
• Fire safety compliance.
• Factory licensing where applicable.

2. Consent to Establish (CTE) from HSPCB

Before setting up machinery or starting construction, you need CTE under the Air and Water Acts.
Your layout must include:

• Depollution areas
• Fluid collection & storage
• Stormwater separation
• Waste storage zones

3. Hazardous Waste Authorisation

Because you handle oils, coolants, batteries, airbags and other regulated materials, you must have specific authorisation to store, transport and hand over these wastes safely.

4. RVSF Registration (Transport Department)

This approval legally recognises your plant as an authorised scrapping facility. It requires:

• Application with layout, machinery, and safety details
• A bank guarantee
• Demonstration of depollution capability
• Digital integration for issuing scrapping certificates

5. Consent to Operate (CTO)

Granted after plant construction is complete. CTO confirms:

• Machinery installation
• Environmental safeguards
• Waste management systems
• Operational readiness

Machinery, Line Setup & ROI Planning

Your machinery defines your plant’s throughput, safety standards and operational efficiency. Investors often underestimate the importance of proper workflow design.

A Standard Vehicle Scrapping Line Includes:

• A reception and inspection zone
• A digital documentation desk
• A secure parking area
• A dedicated depollution bay
• A dismantling section with lifting equipment
• Storage zones for separated materials
• A shearing and baling unit
• A dispatch management area

Key Machinery

• Hydraulic lifts and cranes
• Depollution rigs with spill-proof flooring
• Impact tools and dismantling benches
• Tyre removal machines
• Oil storage tanks with bund walls
• Shears, balers and cutting machines
• Optional shredding line for larger volumes

ROI Perspective

Your profitability depends on:

• Daily vehicle throughput
• Efficient metal recovery
• Strong buyer relationships
• Low downtime due to compliance issues

Investors generally recover capital within 3–5 years, depending on plant size and sourcing strength.

Haryana Industrial Policy Incentives for Recycling Units

Haryana recognises RVSFs as important sustainability infrastructure and offers several financial benefits.

Capital Subsidy

Depending on your investment size, you may receive:

• 10% capital subsidy across enterprise categories
• Higher caps for larger units
• Eligibility across multiple district categories

Other Possible Benefits

• Stamp duty reimbursement
• Interest subsidies
• Electricity duty concessions
• Priority clearances through single-window systems

These incentives significantly reduce the effective cost of setting up a scrapping plant.

Market Opportunities From Auto, IT & Industrial Sectors

There is a misconception that scrapping revenue comes only from steel. In reality, a well-run RVSF has multiple income streams.

Primary Revenue Streams

• Processed steel scrap for mills and foundries
• Aluminium and copper from dismantled vehicles
• Sale of safe, reusable parts
• Service fees from OEMs and fleet operators
• Government contracts for official vehicle disposal

Why the Market Is Expanding

• Companies prefer compliant facilities over informal yards.
• Steel mills increasingly seek stable, high-quality scrap sources.
• New mobility patterns (electric vehicles, shared mobility, corporate leasing) shorten vehicle life cycles.

A plant located in Haryana sits at the center of these changes.

Pollution Norms for Oil, Coolant & Battery Disposal

Environmental compliance protects your business from penalties and ensures long-term credibility.

Fluid Handling Requirements

• All oils must be drained in controlled zones.
• Fluids must be stored in labelled, sealed containers.
• No discharge of oils or coolants is permitted into drains.
• Only authorised recyclers may collect hazardous materials.

Battery Storage

• Lead-acid and EV batteries must be stored in ventilated rooms.
• Flooring must be acid-resistant.
• Every battery must be recorded in disposal logs.

Tyres, Plastics & Glass

• Tyres must be sent to authorised recycling or co-processing facilities.
• Plastics should be sorted by grade before dispatch.
• Glass must be handled to avoid breakage and dust emissions.

Good environmental practice is also good business practice—it prevents shutdowns and builds trust with corporate clients.

Compliance Risks & Penalties — A Practical Scenario

Imagine operating a well-built scrapping facility, but your team unintentionally allows coolant to drain outside the designated zone. During an inspection, authorities find:

• No spill logs
• Improper storage of used oil
• Missing transportation receipts for hazardous waste

This is how permissions get suspended. Even a few days of halted operations can cost lakhs in revenue.
Compliance isn’t paperwork—it’s an operational safeguard.

Action Plan for Establishing an RVSF in Haryana

Here is a practical, step-by-step path:

1. Feasibility & Planning

• Conduct ELV supply assessment
• Select capacity (vehicles/day)
• Draft business model and ROI estimates

2. Land Acquisition & Layout Planning

• Secure suitable industrial land
• Prepare architectural and environmental layouts
• Submit applications for approvals

3. CTE & RVSF Registration

• File for CTE with environmental documents
• Submit RVSF application with safety and machinery plans

4. Construction & Machinery Procurement

• Build depollution, dismantling and storage zones
• Install machinery and environmental controls

5. CTO & Operational Launch

• Pass HSPCB inspection
• Receive CTO and begin commercial operations

6. Scaling Up

• Build fleet and OEM contracts
• Add shredding or additional dismantling lines
• Optimise scrap recovery for higher margins

Conclusion

A vehicle scrapping plant in Haryana is not simply a recycling business—it is part of a larger transformation in the automotive and waste-management sectors. With rising ELV volumes, strict compliance norms and clear state incentives, early movers stand to gain the most.

By planning properly, securing the right approvals, investing in good machinery and building strong supply relationships, you can create a profitable, future-ready RVSF that serves both the market and the environment.

For entrepreneurs and businesses considering this sector, the opportunity in Haryana is stronger today than ever before.

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