Overview of Vehicle Recycling Plant Setup

Vehicle recycling plant means the place where lifeless or no longer useful automobiles are recycled and converted into useful materials. A place that is designed to accommodate an ELV in a very efficient and secure manner is referred to as vehicle recycling plant. Some of the steps involved in the process are as follows; Material recovery Dismantling Shredding Pollution control. These facilities aim at reducing environmental harm through the augmentation of the automotive waste recycling and auto part remanufacturing.

Why Vehicle Recycling Plant Is Essential?

This was answered for the first time during the Union Budget for the financial year 2021-2022. The number of LMVs that are over 20 years old is around 51 lakhs while additional LMVs that are over 15 years of age will also come into picture of policy.

The central government today provide the following guidelines for the establishment, authorization and functioning of AFVs as the Authorized Vehicle Scrapping Facilities (AVSFs) across the nation as per section 59 of the Motor Vehicle Act of 1988.

automobiles that belong to the category of vehicle into which the owners wish to change or that have ceased to be legally registered under Section 41 of the Motor Vehicle Act of 1988.

Environmental and Economic Benefits

• Preserving Resources- In this context to in manufacture metals from raw ores, recycling steel and aluminum sparing much energy. For instance, recycling of steel can save nearly 60% while recycling of aluminum can save nearly 95% of energy respectively.
• Reduction of Waste-Burying the automobiles in the landfills is now reduced in quantity, hence promoting vehicle recycling. There is an outstanding potential to decrease vehicles’ environmental footprint with almost up to 80 to 85 percent of the material which can be recycled.
• Reduction of Pollution-Proper disposal of hazardous materials affirms the protection of ecosystems, the public from health-related complications as well as soil and water quality from Pollution.
• Financial Gains-The recycling industry generates revenue through the recovery and sale of waste material as well as through the resale of reclaimed and recycled parts. Further, the estimate also offers employment opportunities in the processing, resale, dismantling, and collection services.
• Savings on energy- In normal manufacturing processes, the use of recyclable materials cut energy use when compared to use of fresh materials.

Objectives

• It will lessen pollution and increase fuel economy. 17 lakh medium and heavy commercial vehicles are expected to be older than 15 years, and older cars harm the environment 10–12 times more.
• It will result in the establishment of additional scrap yards across the nation and efficient disposal of debris from outdated automobiles. Thirty-five thousand jobs will be created at the new fitness centers, which would also see an investment of Rs. 10,000 crores.
• For instance, it would enhance sales of large and medium-sized commercial vehicles that were gradually being affected by the economic downturn attributed to a surge in Covid-19 cases and the bankruptcy of the Infrastructure Leasing & Financial Services.
• It is expected that it would bring the said NST to life and yield revenue of around Rs. 30,000 to 40,000 crores in the tax-to-GST. Also, the reuse of the metal and plastic parts that frequently make up the car components would also mean that the cost of manufacturing would also go down.
• This means that with the reduction of the price of scrap materials, so shall the manufacturing cost of automobile manufacturers be affected.

Important Terms

• Authorized Scrapper - ASVF Owner Any individual, company, society, trust or other legal entity who operates an Authorized Vehicle Scrapping Facility (ASVF) is known as authorized scrapper.
• Authorized Vehicle Scrapping Facility (ASVF)- A person, organization, society, trust, or business that owns and runs an Authorized Vehicle Scrapping Facility (ASVF) is referred to as an authorized scrapper.
• Certificate of Deposit-It refers to the certificate that the ASVF issued to acknowledge the vehicle's ownership transfer from the registered owner to the approved scrapper in order to receive additional care.
• Certificate of Vehicle Scrapping-It refers to the certificate that an AVSF issues to acknowledge a vehicle's final disposal, which must be kept by the Authorized Scrapper.
• End of Life-Vehicles (ELV)- This refers to all vehicles that are either legally withdrawn from registration, have had their registrations revoked in accordance with Chapter IV of the Motor Vehicles Act 1988, have had a court order to cancel their registration, or have had their legitimate registered owner self-declare them to be waste vehicles as a result of any number of events, including fire, damage, natural disasters, riots, accidents, etc.
• Final Disposal: It refers to the point at which a vehicle's treatment is finished, at which point it can no longer be used, and at which point its engine is disposed of in compliance with CPCB guidelines.
• Scrapping Yard: It refers to the specific area on the AVSF property where disassembled car parts are prepared for further processing using shredders or other equipment to create scrap parts that are then sold to recycling businesses.
• Ware House: It refers to a specific area within the AVSF where processed scrap and salvageable parts are cleaned, categorized, kept, and sold for future use. · The AVSF needs to be connected to the VAHAN database of vehicle registrations, which requires a password and user ID. The IT systems in the AVSF also need to have security certifications in order to safely access the VAHAN database.

Criteria for Scrapping of Vehicle

• Cars that haven't updated their original certificate of registration in accordance with Central Motor Vehicle Rule 52. automobiles for which a certificate of fitness has not been issued. If determined to be unfit or the registration certificate is not renewed, a vehicle older than 15 or 20 years.
• Vehicles that have been destroyed by fire, rioting, natural disasters, accidents, or any other misfortune that the registered owner certifies as junk may be sold.
• Vehicles declared as obsolete/surplus/beyond economic repair by Central/state government is offered for scrapping.
• Vehicles bout by any agency including AVSF in an auction for scrapping of vehicles.
• Vehicles which have outlived their utility or for projects in mining, highway, power, farms, etc. may be self-certified by the owner.
• Manufacturing rejects and test vehicles may be certified by Vehicle OEM
• Auctioned, impounded and abandoned vehicles by any Enforcement Agency.

Conditions of Eligibility

The eligibility conditions for grant of authorization for treatment of end of life vehicles in an AVSF by respective State/UT government are:

The AVSF must be owned and operated by any legal entity be it a person, firm, society or trust established with applicable laws.

The Entity Must Possess

• Certificate of Incorporation
• Valid GST registration
• Valid PAN
• Approved layout plan
• Proof of machinery required for depollution
• Consent to establish proof
• Consent to operate

The entity

• Needed to have applied for or received an establishment license from the relevant authority
• Must have the personnel and tools necessary to perform dismantling tasks, as well as the minimum technical standards set by the pollution control board for collecting and dismantling facilities.
• Will commit to obtaining the necessary quality certifications within a year of the business opening.
• The facility should have an approved building plan, plant layout, and environment management strategy.

Validity and Renewal of Authorization

The authorization is good for ten years, after which it can be extended for an additional ten. Transferability of the authorization is prohibited.

How Whizseed Can Help You?

Here's how our portal can assist you:

• Regulatory Guidance: Our portal provides comprehensive information on the latest guidelines set by the Central Government under Motor Vehicle Act 1988 for setting up, authorizing, and operating an AVSF. This ensures you're always up-to-date with the current regulations.
• Eligibility Checklist: We offer a detailed checklist of eligibility conditions required by State/UT governments to grant authorization for an AVSF. This includes verifying that you have a Certificate of Incorporation, valid GST registration, and PAN, helping you ensure all necessary documentation is in order.
• Technical Requirements Guide: Our portal outlines the minimum technical requirements for collection and dismantling centers as per pollution control board standards. We help you understand the manpower and equipment needed to carry out dismantling activities effectively.
• Quality Certification Assistance: We guide you through the process of obtaining required quality certifications within 12 months of commencing operations, as mandated by the regulations.
• Facility Planning Support: Our portal helps you create and submit an approved Plant Layout, Building Plan, and Environment Management Plan for your facility, which are crucial for authorization.
• Document Generation: We assist in generating essential documents like Certificates of Deposit and Certificates of Vehicle Scrapping, which are required to recognize the transfer of ownership and final disposal of vehicles.
• Authorization Renewal Reminders: Our system tracks the 10-year validity period of your Authorization and sends timely reminders for renewal, helping you maintain uninterrupted operations.

By leveraging our portal's resources, you can ensure full compliance with all regulations, streamline your AVSF setup process, and focus on reaping the environmental and economic benefits of vehicle recycling.