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The Central government, under the authority granted by Section 59 of the Motor Vehicle Act (59 of 1988), has issued guidelines for the establishment, authorization, and operation of Authorized Vehicle Scrapping Facilities (AVSF) in the country. These guidelines are applicable to vehicles that are no longer validly registered under Section 41 of the Motor Vehicle Act 1988 or for owners who wish to scrap their vehicles. The purpose of these guidelines is to ensure the safe and regulated disposal of such vehicles, protecting the environment and promoting a legally compliant vehicle dismantling and scrapping industry.

Title: Guidelines for Registered Vehicle Scrapping Facility (RVSF/AVSF)

Definitions:

Authorized Scrapper: A person, firm, society, trust, or company that owns and operates an Registered Vehicle Scrapping Facility (ASVF/RVSF).

Registered Vehicle Scrapping Facility (RSVF/AVSF): An establishment holding an Authorization for Vehicle Scrapping, issued under these guidelines, for conducting dismantling and scrapping operations.

Certificate of Deposit: A certificate issued by the ASVF to acknowledge the transfer of vehicle ownership from the registered owner to the Authorized Scrapper for further treatment.

Certificate of Vehicle Scrapping: A certificate issued by an AVSF to confirm the final disposal of a vehicle, to be retained by the Authorized Scrapper.

End of Life-Vehicles (ELV): Vehicles that are no longer validly registered, cancelled under Chapter IV of the Motor Vehicles Act 1988, ordered by a court of law, or declared as waste vehicles by the legitimate registered owner due to circumstances such as fire, damage, natural disasters, riots, or accidents.

Final Disposal: The completion of vehicle treatment where it is no longer usable, and the engine is disposed of in accordance with CPCB Guidelines.

Licensing Authority: The Commissioner (Transport) or any other designated officer appointed by the Government of the State/UT.

Scrapping Yard: A designated area within the AVSF premises where dismantled vehicle parts are processed using shredders or other machinery into scrap parts for sale to recycling companies.

Warehouse: A designated location within the AVSF where processed scrap and usable parts are refurbished, catalogued, stored, and sold for re-use.

Requirements:

The AVSF must have connectivity and access to the VAHAN vehicle registration database with secure user credentials and IT systems certified for safe access.

The AVSF is responsible for verifying the identity of the person handing over the vehicle for scrapping to establish the legitimacy of the owner. A copy of this verification must be kept on record for a minimum of six months.

These guidelines aim to ensure the smooth operation of Authorized Vehicle Scrapping Facilities, promoting environmentally sound vehicle disposal practices while maintaining proper documentation and security measures. By adhering to these guidelines, the authorized scrappers and facilities contribute to sustainable waste management and comply with relevant regulations.

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:

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

2.      The entity must possess:

i.                    Certificate of Incorporation

ii.                  Valid GST registration

iii.                Valid PAN

3.      The entity:

i.                    Should have or applied for CTE from the authority of State/UT in which AVSF is located.

ii.                  Should meet the minimum technical requirements for collection and dismantling centers as per CPCB, should have manpower and equipment to carry out dismantling activities.

iii.                Shall undertake to obtain required quality certifications of ISO 9001/ISO 14001/ISO 45001 within 12 months of commencement of operations

iv.                Should possess a No Objection Certificate (NOC) of SPCB within 6 months of commencement.

v.                  Should provide approved Plant Layout and building Plan and also have environment management plan for the facility.

Validity and Renewal of Authorization:

The Authorization is valid for period of 10 years, which shall be renewed for another 10 years. The Authorization shall not be transferable.

Criteria for Scrapping of Vehicle:

i.                    Vehicles which have not renewed their Original Certificate of Registration with Rule 52 of the CMVR (Central Motor Vehicle Rule).

ii.                  Vehicles which have not granted a certificate of fitness.

iii.                Vehicles which have damaged due to fire, riot, natural disaster, accident or any calamity, where the registered owner self certifies same as scrap.

iv.                Vehicles declared as obsolete/surplus/beyond economic repair by Central/state government is offered for scrapping.

v.                  Vehicles bout by any agency including AVSF in an auction for scrapping of vehicles.

vi.                Vehicles which have outlived their utility or for projects in mining, highway, power, farms, etc. may be self-certified by the owner.

vii.              Manufacturing rejects and test vehicles may be certified by Vehicle OEM

viii.              Auctioned, impounded and abandoned vehicles by any Enforcement Agency.

        Certificate of Vehicle Scrapping:

i. Upon completion of the necessary treatment, the Authorized Scrapper will issue a Digital 'Certificate of Vehicle Scrapping' along with a digital photograph.

ii. The Central Government will maintain a separate record of scrapped vehicles on the VAHAN database.

iii. The reuse or resale of any refurbished parts, including engines, obtained from the scrapped vehicle, shall comply with the policy, guidelines, and standards issued periodically.

The dismantling and scrapping of waste vehicles must adhere to the 'Guidelines for Environmentally Sound Management of End of Life Vehicles' (ELVs) published by CPCB and take place only in authorized scrapping yards.

Applicable Rules /Acts:

a.       The Motor Vehicle Act,1988: This Act was amended in 2019 which provides in detail the legislative provision for the license which are used for driver/conductors, for registration of motor vehicles, control of motor vehicle through permits, traffic regulations, insurance, liability, offences and penalties, etc. To exercise the legislative provision of Act, the Central Motor Vehicle Rule was made by Government of India. This policy is against the liability which is incurred in respect of death, or injury to person, or damage to any property of third party.

The Act mandates that no person/owner shall drive motor vehicles unless the vehicle is registered.

The certificate of registration shall be valid for 15 years and shall need renewal. The suspension of registration motor vehicle shall be made by registered authority if they find that use of motor vehicle may be dangerous to public.

The Central Motor Vehicle Rules, 1989: —A trade certificate which is granted or renewed shall be for a period of twelve months from the date of issue or renewal thereof and shall be effective throughout India. The provisions shall not apply to a person while receiving instructions or gaining experience in driving for a test of competence to drive, so long as the person is the holder of an effective learner's license issued to him and such person is accompanied by an instructor holding an effective driving license to drive the vehicle and there is painted, in the front and the rear of the vehicle or on a plate or card affixed to the front and the rear, the letter "L" in red on a white background. Every driving license issued or renewed by a licensing authority.

One year from the date of commencement of Central Motor Vehicles (Amendment) Rules, 1993, any person driving a goods carriage carrying, in addition to being the holder of a driving license to drive a transport vehicle, also have the ability to read and write at least one Indian language.

Various State and UT Motor Vehicles Rules,1993

d.      Indian Penal Code,1860

e.       The Hazardous Waste (Management, Handling and Trans boundary movement) Rules, 2008 as amended fro

f.       The Ozone Depleting Substances (Regulation and control) Rules,2000

g.       The Batteries (Management and Handling) Rules,2011 as amended 2016

h.      The Plastic Waste (Management and Handling) Rules 2016.