Amarjit had been running a small transport company near Ludhiana for 18 years. His yard was full of old trucks – RC expired, fitness failed, engines leaking oil – but every dealer he spoke to offered “cash only, no papers, no certificate”. When a bank client insisted on a government-authorised scrapping certificate before giving him a fleet loan, he realised something: Punjab is moving from informal “kabaadi” to formal vehicle scrapping plants – and quickly.
If you’re thinking of setting up a vehicle scrapping plant in Punjab, this guide will walk you through the opportunity, locations, approvals, costs, incentives and compliance risks in a clear, business-focused way.
Why Punjab Is Growing in Vehicle Recycling
Punjab is traditionally an auto and agro powerhouse – think tractors, trolleys, trucks, buses and cars serving farms, mandis, industry and cross-border trade. Many of these vehicles are now reaching end-of-life under fitness norms and scrappage incentives.
Key drivers you can bank on:
National policy push
India’s ELV & dismantling market was valued around USD 5,979.7 million in 2023, projected to reach USD 18,528.2 million by 2030 at a CAGR of 17.6% (2024–2030).
End-of-Life Vehicles (ELV) Rules 2025 introduce EPR-based scrapping obligations for vehicle producers, ensuring steady ELV flow to authorised facilities.
Policy + infrastructure convergence in Punjab
State Transport Department has notified the State Transport Commissioner as Registration Authority for RVSFs in Punjab.
National RVSF portal and NSWS (Know Your Approvals) now list central + state approvals in one place, reducing procedural opacity for investors.
Move from informal to formal scrapping
OEM-backed facilities like Tata Motors’ Re.Wi.Re scrapping plant in Punjab show that large brands expect long-term ELV volumes here and are investing accordingly.
For an entrepreneur, this means: Punjab sits at the intersection of rising ELVs, strong transport/agro activity, and clear regulations – a good time to enter before the field is crowded.
Best Locations: Ludhiana, Mohali, Amritsar, Jalandhar
You’re not just choosing land; you’re choosing access to ELVs, buyers and labour.
A practical way to think about locations:
Ludhiana
Dense cluster of engineering, bicycle, auto parts and textile units.
Highest share of waste management service providers in Punjab (around 20–21% of all listed services), indicating strong scrap logistics and allied ecosystem.
Good for heavy vehicles, industrial fleets, goods carriers.
Mohali (and Chandigarh periphery)
Corporate, IT, logistics and real-estate hub.
Second-highest share of waste management services in the state (~16–17%).
Strong potential for car and SUV scrapping from corporates, leasing companies and premium car owners.
Amritsar
Border trade, tourism and religious travel centre.
Suitable for buses, tourist vehicles, older trucks engaged in trade routes.
Jalandhar
Sports goods, manufacturing and education hub.
Significant presence of local waste management and scrap firms (~7–8% state share).
Good catchment for mixed ELVs – 2-wheelers, cars and commercial vehicles.
You can also evaluate:
Distance from national and state highways to minimise towing and transport cost.
Proximity to steel rerolling mills and metal buyers for outgoing scrap.
Possibility of locating in an industrial estate/park to simplify land-use conversion and approvals.
Raw Material Availability From Transport & Industrial Sector
Your raw material is end-of-life vehicles (ELVs) – not just scrap cars from households. Punjab has multiple ELV streams you can tap:
Commercial transport & logistics
Inter-state trucks, LCVs, buses and mini trucks that have exhausted fitness or become uneconomical to repair.
Fleet operators prefer formal RVSFs to get a Certificate of Vehicle Scrapping and claim tax rebates / discounts on replacement vehicles.
Agro & tractor segment
Old tractors, trailers, harvesters and rural commercial vehicles.
Many are still scrapped informally; ELV Rules 2025 plus financing norms will gradually push them towards authorised facilities.
Industrial and SME fleets
Manufacturing units in Ludhiana, Jalandhar, Mandi Gobindgarh and nearby areas use in-house trucks, vans and pickups.
As ESG reporting grows, they prefer traceable disposal over undocumented kabaadi yards.
Government & institutional vehicles
Central and state departments regularly phase out old fleets under scrappage and auction rules.
Courts and governments have emphasised safe handling of abandoned and seized vehicles, which again favours RVSFs.
Mini-story you can visualise:
A Mohali-based logistics SME with 35 trucks decides to replace 10 ageing units. Instead of ad-hoc scrap sales, they route all 10 to an RVSF, get scrapping certificates, claim OEM discounts on new trucks, and show compliant disposal in their ESG report – a win-win that becomes your recurring business.
Approvals Required From PPCB & RVSF Portal
Setting up a vehicle scrapping plant in Punjab sits at the junction of central motor vehicle rules and state pollution control norms. Investors often underestimate this and face delays.
Central / portal-linked requirements
Registration as an Authorized/Registered Vehicle Scrapping Facility (RVSF) under:
Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021.
ELV Rules 2025 read with Vehicle Scrappage Policy.
Application via:
Parivahan / RVSF portal for RVSF license and integration with vehicle databases.
NSWS “Know Your Approvals (KYA)” module to see consolidated central + state approvals for “Vehicle Scrapping Facility – Punjab”.
State-level (Punjab) approvals – typical list
From PPCB (Punjab Pollution Control Board)
Consent to Establish (CTE) under Water & Air Acts.
Consent to Operate (CTO) for actual running of the RVSF.
Authorisation under Hazardous and Other Wastes Rules for handling waste oil, lubricants, contaminated rags, batteries etc.
From Transport & local authorities
RVSF registration approval from State Transport Commissioner, Punjab (Registration Authority).
Building plan approval for sheds and civil structures.
Fire NOC (especially where shredding and cutting operations are done).
Power connection for heavy machinery.
Illustrative approvals matrix
Layer
Key Approval / Portal
Who Issues / Hosts
Why It Matters
Central – Transport
RVSF registration
MoRTH / Parivahan RVSF Portal
Legal licence to operate scrapping plant
Central – Facilitation
Approvals list & NSWS KYA output
DPIIT NSWS Portal
Consolidated approvals roadmap
State – Transport
RVSF permission & oversight in Punjab
State Transport Commissioner (RA)
State-level regulatory control
State – Environment
CTE, CTO, Hazardous Waste authorisation
Punjab Pollution Control Board
Water, air, waste & chemical compliance
This table helps you design your project timeline – apply for CTE early, start RVSF portal application once land and basic layout are frozen, and then sequence the rest.
Cost of Machinery: Depollution, Dismantling & Shearing
Exact costs depend on capacity, brand and level of automation, but every vehicle scrapping plant in Punjab will broadly invest in three machinery blocks:
Higher upfront capex but better per-vehicle operating cost.
Large facility (OEM / multi-city sourcing)
Integrated shredding and advanced segregation, automated cranes, sophisticated IT system.
Likely in partnership with OEMs or large metal players.
You should also budget:
Civil works (concrete flooring, drainage, oil-water separators).
Pollution-control systems (ETP/Oil-water separators, storm-water channels).
IT systems for inventory, CoD issuance and reporting.
A good plant design exercise will match machinery scale with realistic ELV sourcing in your catchment area, so you’re not overinvesting.
Subsidies Under Punjab Industrial & Business Policy
While details evolve over time, Punjab’s industrial policies generally reward:
MSME and manufacturing investments
Environment-friendly / recycling units
Units in designated industrial zones / backward areas
Typical benefit heads to explore with the latest Punjab Industrial & Business Development Policy and District Industries Centre:
Capital investment subsidy (percentage of plant & machinery cost, with caps).
Interest subsidy on term loans for MSMEs.
Power tariff incentives or duty refunds.
Stamp duty and registration fee concessions on land purchase/lease.
SGST reimbursement for eligible units (where applicable).
A smart approach is to:
Structure your RVSF as a registered MSME where eligible.
Choose land in a notified industrial area to unlock more incentives and smoother approvals.
Align your project DPR with green/recycling objectives, which strengthens your case for subsidies.
A consulting partner like Green Permits can help you read the fine print, align your project category correctly, and ensure policy benefits are actually captured in your financial model.
Market Demand From SMEs, Agro & Fleet Operators
Demand for authorised scrapping in Punjab is not only about individual car owners. The real volume comes from organised players:
Fleet operators (logistics & passenger)
Intercity buses, tourist coaches, school buses, and freight fleets.
They value: clean deregistration, scrap certificates, and compliance proof for lenders and insurers.
Agri-linked equipment owners
Sugar mills, rice mills, agro-processors, mandis and FPOs that own trucks, tractors and haulage vehicles.
Rising diesel costs and repair costs push them towards replacing older, inefficient vehicles with newer models – scrapping is part of that cycle.
SMEs & corporates
Manufacturing clusters (Ludhiana, Jalandhar, Mohali) with staff buses, pickup vans, material movement vehicles.
Increasingly, ESG and CSR reports ask for proof of environmentally sound disposal of assets, creating sticky partnerships with compliant RVSFs.
Government & institutional clients
Police, municipal bodies, public works departments, public sector units – all with old vehicle stock awaiting disposal under central/state instructions.
If you position your vehicle scrapping plant in Punjab as a compliance-oriented partner (not just a buyer of scrap), these segments can give you a stable yearly pipeline.
Environmental Compliance & Safety Norms
This is where many operators under-invest and later suffer notices, fines or suspension.
Key environmental expectations
Fluids & oils
All fuel, engine oil, coolant, brake fluid and refrigerants must be drained before cutting or shearing.
Fluids must be stored in labelled, leak-proof containers and handed over to authorised recyclers / TSDFs.
Batteries, tyres and hazardous parts
Lead-acid batteries and industrial batteries must move only to registered battery recyclers under Battery Waste Management Rules.
Tyres, airbags, glass and plastics must be segregated and routed to authorised recyclers or co-processing.
Storm-water & soil protection
Concrete flooring, oil-water separators and proper drainage to avoid soil and groundwater contamination.
No open burning or uncontrolled cutting that generates toxic fumes.
Health & safety
PPE for workers (helmets, gloves, boots, safety glasses, masks).
Fire safety equipment, training, and emergency procedures.
What can go wrong: a realistic risk scenario
Imagine a small scrapping yard outside Jalandhar that starts operating without proper oil storage or floor design. Within a year:
PPCB notices black oil patches and contaminated run-off in nearby drains.
A complaint triggers inspection; the yard is found without hazardous-waste authorisation.
CTE/CTO renewal is held up; RVSF registration faces suspension due to non-compliance with environmental norms.
For you, that translates into lost business days, rectification costs, penalties and reputational damage. Building compliance correctly from Day 1 is cheaper than fixing it under pressure later.
Setup Blueprint
Let’s put it all together into a practical setup flow for a vehicle scrapping plant in Punjab.
1. Concept & feasibility
Define target capacity (vehicles/day) based on city cluster and sourcing opportunities.
Prepare a preliminary DPR covering land, machinery, basic capex and OPEX.
Check industrial policy benefits and MSME classification eligibility.
2. Land & layout
Select land in/near industrial zones of Ludhiana, Mohali, Amritsar or Jalandhar with good road access.
Ensure zoning/land-use compatibility; get local body NOCs if required.
3. Approvals planning (via NSWS & RVSF portal)
Use NSWS KYA tool for “Vehicle Scrapping Facility – Punjab” to generate a list of central + state approvals.
Sequence: CTE from PPCB → RVSF application on Parivahan portal → other local permissions.
Build buffer time into your project plan; central rules expect processing within defined timelines, but documentation must be complete.
4. Procurement & construction
Finalise machinery vendors for depollution rigs, lifts, shears and balers.
Construct civil infrastructure with proper drainage and oil-water management.
Implement basic IT systems for vehicle tracking, inventory and CoD issuance.
5. Trial operations & fine-tuning
Start with a controlled number of vehicles to test process flow.
Closely monitor fluid handling, segregation and scrap dispatch.
Rectify layout bottlenecks before scaling up.
6. Scale, anchor clients & compliance rhythm
Sign long-term arrangements with fleet operators, SMEs and OEM dealers.
Put in place a calendar for PPCB returns, hazardous waste records and statutory reporting.
Keep training your team on safety, environment and updated rules (ELV 2025, BWM, PWM, etc.).
A specialist partner like Green Permits can help you stitch all this into a bankable, compliance-proof project plan instead of learning everything by trial and error.
Building a Compliant Vehicle Scrapping Plant in Punjab: Final Thoughts
A vehicle scrapping plant in Punjab is no longer a speculative idea – it sits on top of:
Strong national policy (Vehicle Scrappage Policy, ELV Rules 2025).
High transport and agro-vehicle intensity in Punjab.
Growing ESG and compliance expectations from lenders, corporates and government buyers.
The winners in this space will be those who treat scrapping as a regulatory and process business, not just as metal cutting. If you get the location, approvals, machinery, safety, and market relationships right, this can be a stable, scalable recycling venture for the next decade.
Usually you start with Consent to Establish (CTE) from PPCB and parallel planning for RVSF registration on the Parivahan portal.
The State Transport Commissioner, Punjab acts as the Registration Authority for RVSFs under the Motor Vehicles scrapping rules.
For a small 1–3 TPD yard handling cars and light vehicles, investors often plan anywhere from 0.5 to 1.5 acres, depending on layout and parking needs.
Yes – many projects start with more manual dismantling and a basic depollution rig, then add shears, balers and shredders as ELV inflow and capital allow.
Key risks include oil and coolant leaks, soil and water contamination, and improper handling of batteries and tyres, which can trigger PPCB notices, penalties and even suspension of your RVSF license.
