Overview of Vehicle Scrapping Facility Authorization (AVSF License)

With the automating industry continually developing across the world, ELV management remains a major problem. Vehicle scrapping amenities are crucial at this stage as they take responsibility for dismantling ELVs, recycling and disposal of the vehicles in a sustainable way. In an effort to check on and harmonize these amenities, numerous nations have brought into operation Authorized Vehicle Scrapping Facility or AVSF. This article explores the importance, process, and benefits of AVSF, providing insights into how these regulations contribute to sustainable automotive practices.

Benefits of Authorized Vehicle Scrapping Facility

• Enhanced Environmental Compliance: Certified centers exercise the maximum company’s policy on environmental concerns to ensure that pollution is kept to a minimal level, and that adequate policies on proper disposal of wastes are exercised.
• Improved Public Health and Safety: Safe management of dangerous substances provides the following benefits: The likelihood of health hazards affecting those involved in handling or coming across such material is reduced, thus society becomes safer.
• Economic Growth: Many people are employed in recycling industries and other related businesses, hence the creation of employment opportunities improve the economic stability of a nation.
• Regulatory Compliance: Currently, AVSF has organizational policies that are in accordance with the national and international legal requirements meaning that the facilities are not involved in legal complications while being good corporate citizens.
• Technological Advancement: This in a way presents pressure to find the best ways of authorizing vehicle recycling hence promoting utmost efficient and effective scrapping solutions.

Important terms associated with vehicle scrapping:

When you want to know more about the vehicle scrapping facility, you need to check some terms associated with vehicle scrapping.

• Authorized Scrapper: This heading means a person or entity owning to the authority to set up and operate a vehicle scrapping facility.
• Authorized Vehicle Scrapping Facility: AVSF means a facility where old and damaged cars get dismantled and scrapped maintaining the government norms and rules.
• Certificate of Deposit: This term is associated with the certificate of proof that the ownership of the car is changed. Now the authorized vehicle scrapping facility is the new owner of the car in place of the registered owner.
• Certificate of vehicle scrapping: This is the final certificate issued by the AVSF and indicates that the car is ready to be scrapped and currently under the preservation of the authorized scrapper.
• End of Life Vehicles (ELV): This means the vehicles that are not registered anymore. Also, this indicates to the vehicles whose registration is canceled under Motor Vehicles Act, 1988, chapter IV. Also indicates the vehicles declared as damaged or out of use by the court of law or by the registered owner, due to any circumstances like accident, fire, natural disaster, etc.
• Final Disposal: Meaning of this heading is that the vehicle is scrapped fully and it is not in a condition to be commissioned anymore. Also, the engine of the vehicle is scrapped under the CPCB norms.
• Scrapping Yard: This is the location under the AVSF where the damaged cars are processed properly. Also, it is the place where the parts that cannot get rid of will get sold to different recycling companies.
• Licensing Authority: This means an authorized person or Transport Commissioner assigned by the State or Union Territory Government.
• Warehouse: This is the place owned by the AVSF where the dismantled, un used, junk parts of the cars are piled up for re-use or selling purposes.

Vehicles that qualify for scrapping:

• Vehicles that are no longer registered or have any original registration certificate.
• Vehicles that are known as surplus or obsolete or beyond repair by the state or central government.
• Vehicles that do not have any fitness certificate.
• Vehicles that are no longer useful even for highway or mining projects.
• Vehicles that are damaged due to natural calamity, riot, fire, accident and the owner itself declares it as a scrap and want to discard it off from his fleet.
• Vehicles that are auctioned or abandoned somewhere.
• Vehicles that got rejected during testing or have manufacturing defects.

Applicable Rules /Acts:

• The Motor Vehicle Act, 1988: This Act was amended in 2019 and includes exhaustive provisions relating to the license that is used for driver/conductors, registration of the motor vehicles, control of the vehicle through permits, traffic rules, insurance, liability, offense, and penalty etc. To implement the provision of the Amendment Act, the Central Motor Vehicle Rule was framed by the Government of India. This policy is in contrast with the liability that is assumed with regard to fatal accident, bodily harm or any loss or damage to any third party property. The Act mandates that no person/owner shall drive motor vehicles unless the vehicle is registered.
• The Central Motor Vehicle Rules, 1989
• Central Motor Vehicles (Amendment) Rules, 1993
• Various State and UT Motor Vehicles Rules, 1993
• Indian Penal Code, 1860
• The Hazardous Waste (Management, Handling, and Transboundary Movement) Rules, 2008 as amended.
• The Ozone Depleting Substances (Regulation and Control) Rules,2000
• The Batteries (Management and Handling) Rules,2011 as amended 2016
• The Plastic Waste (Management and Handling) Rules 2016.

Eligibility criteria for obtaining authorization by proposed Authorized Vehicle Scrapping Facility

Certain eligibility conditions must be met in order to obtain authorization for the treatment of end-of-life vehicles by the respective state or UT governments. These conditions are as follows:

• The AVSF (Authorized Vehicle Scrapping Facility) must be owned and operated by a legal entity, such as a person, firm, society, or trust, established in accordance with applicable laws.
• The entity should possess a certificate of incorporation, valid GST registration, and a valid PAN (Permanent Account Number).
• The entity should have either applied for or obtained an establishment license from the relevant authority.
• The entity should meet the minimum technical requirements set by the pollution control board for collecting and dismantling centers. This includes having the necessary workforce and equipment to carry out dismantling activities.
• The entity should commit to obtaining the required quality certifications within 12 months of commencing operations.
• The entity should provide an approved plan layout and building plan, as well as an environment management plan for the facility.
• The AVSF should have connectivity and access to the VAHAN database of vehicle registrations, with a designated User ID and password. It must also have the necessary security certifications for its IT system to securely access the VAHAN database.
• Additionally, the AVSF should verify the identity of the person handing over the vehicle for scrapping in order to determine the actual owner. A copy of this verification should be kept for a minimum of 6 months.

Minimum requirements for setting up a vehicle scrapping facility:

The facility should have enough space to move and store the damaged vehicles. Also it must house enough equipment for the scrapping tasks. The vehicle scrapping unit must have the facilities of handling hazardous pollutants in a proper way. If it doesn’t have such facilities like lead acid batteries, e waste, recovery of rare earth metals, or lithium ion components, etc., available within its premises, it should sell these materials to other companies with such facilities available.

Procedure of Vehicle Scrapping Facility set up:

• The applicant must contact the authority handling such tasks under the state government or the UT government. He must mention the location where the facility will be set up along with the desired government fee for this task.

• The state government or the Union territory government must complete all the process within 60 days from the date of application. Within these 60 days, the government should process all the necessary permissions from different departments under this government. After the 60 days get over, the application will be termed as accepted and approved.

• However, the central government will issue a single window clearance for this facility within 6 months of its inception. Till then, the state government or the UT government will handle all applications manually.

• Once the registration is granted, it will stay active for 10 years. After the period gets over, it can be renewed for another 10 years.

Validity and Renewal of Authorization

The authorization will be valid for 10 years. After that it can be renewed for additional 10 years. Transferability of the authorization is prohibited.

Why you should choose Whizseed?

• Highlight our team's expertise and in-depth understanding of the relevant Regulations, ACTS, and processes involved in obtaining vehicle scrapping facility authorizations.
• We offer one-stop solution that covers all aspects of vehicle scrapping facility authorization, including preparation of required documentation, liaising with authorities, obtaining necessary approvals, and ensuring ongoing compliance.
• Our services can save applicants time and money by efficiently navigating the complex processes, reducing delays.
• User-friendly nature of our website, making it easy for applicants to access information, upload documents, track progress, and communicate with our support team.