Authorized Vehicle Scrapping Facility (AVSF)

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Authorized Vehicle Scrapping Facility (AVSF) : Overview

Establishing an Authorized Vehicle Scrapping Facility (AVSF) in India has become imperative with the Central Government's notification of comprehensive guidelines for its setup and operation. This initiative is targeted towards vehicles no longer validly authorized under the Motor Vehicle Act or those whose owners wish to dispose of them. The primary objectives include ensuring the secure disposal of such vehicles, safeguarding the environment, and promoting a legally compliant vehicle dismantling and scraping industry. The authorization to commence an AVSF in India is granted by the respective state or union territory governments.

Key Terms Associated with Authorized Vehicle Scrapping Facility:

Authorized Scrapper: Definition: A person, firm, society, trust, or company owning and operating an Authorized Vehicle Scrapping Facility.

Authorized Vehicle Scrapping Facility: Definition: An establishment holding authorization for vehicle scrapping as per the issued guidelines. It encompasses the dismantling and scrapping processes.

Deposit Certificate: Definition: A certificate issued by the AVSF acknowledging the transfer of vehicle ownership from the authorized owner to the authorized scrapper.

Vehicle Scrapping Certificate: Definition: A certificate issued by the AVSF recognizing the final disposal of a vehicle. It is a crucial document that the authorized scrapper must preserve.

Scrapping Yard: Definition: The location where the dismantled parts of a vehicle undergo processing and treatment.

Qualification Criteria for Vehicle Scrapping:

The following categories of vehicles are eligible for scrapping under the AVSF guidelines:
Non-Renewed Certificates: Definition: Vehicles that have not renewed their original certificate of registration.

No Fitness Certificate: Definition: Vehicles that have not been granted a fitness certificate.

Damage from Various Causes: Definition: Vehicles damaged due to fire, riot, natural disaster, accident, or any calamity, as self-certified by the owner as scrap.

Obsolete or Beyond Repair: Definition: Vehicles declared obsolete, surplus, or beyond economical repair by the Central or state government.

End of Utility: Definition: Vehicles that have outlived their utility, including those from projects in mining, highway construction, etc.

Manufacturing Rejects and Test Vehicles: Definition: Vehicles classified as manufacturing rejects and test vehicles.

Auctioned, Impounded, and Abandoned Vehicles: Definition: Vehicles obtained through auctions, impounded, or abandoned.

The establishment of AVSF in India underscores the commitment to responsible vehicle disposal, environmental protection, and the promotion of a compliant vehicle scrapping industry. This initiative aligns with the broader goal of sustainable development and efficient waste management in the automotive sector.
Eligibility Criteria for Authorization of an Authorized Vehicle Scrapping Facility (AVSF):
In order to obtain authorization for the treatment of end-of-life vehicles from the respective state/union territory governments, the following eligibility conditions must be fulfilled:
Legal Entity Ownership: The AVSF should be owned and operated by a legal entity, such as a person, firm, society, or trust, established in accordance with applicable laws.

Compliance with all relevant environmental norms is mandatory. If lacking capabilities for recycling hazardous wastes, such materials must be sold to duly authorized recycling agencies.

Procedure to Establish an Authorized Vehicle Scrapping Facility in India:

The applicant applies to the registration authority of the concerned state government or UT Administration, along with the specified fee. The state or UT administration processes the application within 60 days, and if not concluded within this period, the application is deemed approved. The central government is mandated to operationalize a single-window clearance for registration within 6 months from the rules' notification. Until then, manual processing by the state or UT administration is in place.

Vehicle Scrapping Process:

The authorized owner or representative submits the vehicle with necessary documents to the AVSF.
AVSF verifies the person's identity before scrapping the vehicle.
Access to the VAHAN database is utilized to update vehicle scrapping information electronically and facilitate the submission of scrapping requests.
AVSF issues a certificate of deposit to the owner or representative, serving as proof of vehicle ownership transfer.
AVSF compensates the authorized owner or representative for the scrapped vehicle.
A digital certificate of vehicle scrapping is issued by the AVSF upon completion of the treatment.
AVSF establishes a scrapping yard and collection center for proper handling, de-pollution, and dismantling of end-of-life vehicles.
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Required Document List

  • The entity must possess a certificate of incorporation, valid GST registration, and a valid PAN.
  • Establishment License:
    • The entity should have applied for or obtained an establishment license from the relevant authority.
  • Technical Requirements:
    • The AVSF must meet minimum technical requirements for collecting and dismantling centers as per pollution control board standards. This includes having the necessary workforce and equipment for dismantling activities.
  • Quality Certifications:
    • The entity should commit to obtaining required quality certifications within 12 months of commencing operations.
  • Infrastructure and Environment Management:
    • The AVSF must provide approved layout and building plans, ensuring adequate area for vehicle movement, storage, and equipment installation. An environment management plan for the facility is also mandatory.
  • Connectivity to VAHAN Database:
    • The AVSF should have connectivity and access to the VAHAN database for vehicle registration, supported by security certifications for its IT system.
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