A few months ago, a Jaipur-based fleet owner told us something striking:
“I was spending more money keeping my 15-year-old trucks alive than earning from them.”
When he explored replacing them, he discovered Rajasthan’s evolving scrapping ecosystem — new RVSF facilities, government incentives, and district-level waste-to-wealth plans.

But he quickly realized: setting up a scrapping plant is not about cranes and cutters — it’s about compliance, sourcing, and state-specific opportunities.
This guide is written for founders like him who want clarity before investing.

Rajasthan’s Expanding Automotive & Recycling Opportunities

Rajasthan has long been known for its industrial belts — from the automotive clusters of Bhiwadi–Neemrana to the transport-heavy hubs of Jaipur, Jodhpur, and Alwar. In recent years, rising ELV (End-of-Life Vehicle) volumes and the Rajasthan Vehicle Scrap Policy announcement under the Green Budget 2025 have created a powerful momentum for formal scrappage businesses.

Why Rajasthan is becoming a scrapping hotspot

• Rapid urbanisation in Jaipur, Jodhpur, Udaipur, Kota is increasing ELV generation.
• Auto & ancillary industries in Bhiwadi–Neemrana feed a continuous supply of commercial ELVs.
• State announced district-level Waste-to-Wealth parks and circular economy incentives (Budget 2025).
• Compliance enforcement for 15+ year commercial vehicles is tightening.

Rajasthan is shifting from informal yards to RVSF-compliant, safe, and profitable scrapping units — making this the right time for investors to enter.

Top Locations: Bhiwadi, Neemrana, Jaipur, Jodhpur

Each region offers unique sourcing and operational advantages.

Bhiwadi & Neemrana (DMIC Belt)

Located along the Delhi–Mumbai Industrial Corridor, these zones offer:

• High vehicle density from logistics companies and OEM suppliers
• Easy procurement of ELVs from Haryana, Delhi, UP borders
• Faster logistics for inbound vehicles and outbound processed scrap

Jaipur Region

• Home to Rajasthan’s first major RVSFs such as Tata Re.Wi.Re (15,000 vehicles/year benchmark capacity)
• Proximity to large automobile markets and government fleet yards
• Ideal for mid-to-large-scale RVSF setups serving 3–4 districts

Jodhpur

• Strong presence of mining, transport and commercial fleets
• Growing procurement from rural/industrial belts
• Lower land cost for large facilities

Location Selection Intro

Your goal is to balance ELV sourcing, outbound scrap buyers, land cost and regulatory approvals. Proximity to OEMs, fleet hubs and scrap consumers (steel mills, foundries) dramatically improves ROI.

ELV Sourcing From Manufacturing & Urban Clusters

Most new RVSF investors underestimate sourcing. In Rajasthan, sourcing strengths come from:

Primary ELV Channels

• Commercial fleets in Bhiwadi, Alwar, Jodhpur
• Old taxis and passenger vehicles in Jaipur & Ajmer
• OEM buy-back or dealerships retiring test vehicles
• Govt/PSU auctions — municipal fleets, PWD, police vehicles
• Logistics & mining fleets (heavy commercial opportunities)

Tip for founders

Build pre-signed Memoranda with transport unions, OEM dealerships, government depots, and use digital lead-generation for individual owners.

Licensing: Pollution Control, RVSF Certification, Waste Rules

Setting up an RVSF requires compliance under:

Core Licenses and Approvals

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Every RVSF must align with MoRTH Vehicle Scrapping Facility Rules, state pollution norms, and district-level approvals. Missing even one mandatory clearance can stall operations or trigger penalties.

Mandatory Approvals List

• RSPCB – Consent to Establish (CTE)
• RSPCB – Consent to Operate (CTO) after installation
• RVSF Registration under MoRTH (via Vahan portal)
• Waste storage authorizations (hazardous waste fractions)
• Factory/Building approvals – fire NOC, electricity, labour compliance
• Land-use conversion (if required)

Investment Planning, Equipment List & Cost Forecast

Investment varies by capacity — generally ₹50 lakh to ₹5 crore for small to mid-scale facilities across India (SERP-confirmed ranges).

Below is a Rajasthan-specific planner:

Table 1: Investment Snapshot — 1 TPD to 5 TPD Scrapping Line

Component	Small RVSF (1 TPD)	Mid RVSF (3 TPD)	Large RVSF (5 TPD+)
Land (1–5 acres depending on scale)	₹20–60 lakh	₹1–2 crore	₹2–4 crore
Machinery: depollution, dismantling, cranes	₹25–40 lakh	₹60–90 lakh	₹1.2–2 crore
Compliance + registration + audits	₹5–10 lakh	₹10–15 lakh	₹20+ lakh
Total Estimated CAPEX	₹50–90 lakh	₹1.7–3 crore	₹3.5–6 crore

Interpretation: Even a 1–TPD unit is capital-intensive because it must meet RVSF safety & environmental norms, not just dismantling.

State Incentives Under Rajasthan Industrial Policy

Rajasthan’s Green Budget 2025 and upcoming Vehicle Scrap Policy support circular economy projects.

Key opportunities for scrapping plants

• Preference for recycling units inside Waste-to-Wealth parks
• Possible interest subsidies for plant & machinery
• Support for green R&D and pollution-control infrastructure
• Entry tax exemptions for recycling technologies (case-specific)

While the state has not published a dedicated scrappage-incentive structure yet, early RVSF applicants benefit from easier approvals and market capture.

Market Opportunities in Steel, Auto & Government Scrap Auctions

Scrapping generates four major revenue streams:

1. Steel Scrap (60–70% of vehicle weight)

High demand from rolling mills in Mandi Govindgarh, Alwar, Bhiwadi.

2. Aluminium & Non-ferrous Metals

Strong margins — used by auto component and utensil industries.

3. Parts Reuse (subject to rules)

Tyres, catalytic converters, batteries yield significant returns.

4. Government Scrap Auctions

• Municipal fleets
• Public transport buses
• Department vehicles (PWD, police, electricity boards)

Rajasthan’s massive government ecosystem ensures steady annual auction cycles.

Compliance Under Vehicle Scrapping Rules

Compliance is the backbone of an RVSF. The 2021–2024 MoRTH rules specify strict operational, safety, and environmental protocols.

Key Compliance Points

• Mandatory depollution steps before dismantling
• Safe removal of oils, coolants, batteries, airbags
• CCTV monitoring & digital record-keeping
• Issuance of Certificate of Deposit (CoD) for scrapped vehicles
• Secure storage of hazardous waste

Real-world Risk Example

A Rajasthan dismantling yard saw its operations halted when RSPCB found leakage of coolant and improper hazardous waste storage — leading to license suspension and loss of OEM contracts.
This is avoidable by following proper depollution SOPs.

Setup Roadmap

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Starting an RVSF requires a structured roadmap that aligns land acquisition, approvals, machinery installation and compliance workflows. The sequence matters — skipping steps can delay registration.

Step-by-Step Flow

1. Land finalization
   • 1–5 acres depending on capacity
2. Apply for CTE (RSPCB)
   • Submit layout, machinery, pollution-control plan
3. Machinery procurement & installation
   • Depollution, dismantling, shearing, material handling
4. Apply for RVSF Registration (Vahan Portal)
   • Upload compliance plan, building approvals, equipment list
5. Obtain CTO (RSPCB)
   • Mandatory before full-scale operation
6. Staff training + SOP implementation
   • Safety, depollution, hazardous waste handling
7. Go-live + system integration
   • CoD generation, CCTV, weighbridge integration

Conclusion

Rajasthan’s industrial growth, rising ELV volume, and the state’s push for greener infrastructure make RVSF units one of the most promising recycling investments today.
Investing early means securing long-term fleets, dealership tie-ups, and government recycling contracts.

With the right site, compliance strategy, and machinery planning, entrepreneurs can build a profitable, sustainable vehicle scrapping plant that aligns with India’s circular economy goals.

📞 Call-to-Action

Need help setting up your RVSF in Rajasthan?
Green Permits assists with RSPCB approvals, RVSF registration, machinery planning, layout design, and compliance audits.

📞 +91 78350 06182
📧 wecare@greenpermits.in

Book a Consultation with Green Permits