Vehicle Scrapping Facility Registration (RVSF Licence)
Vehicle scrapping facility registration makes you a Registered Vehicle Scrapping Facility (RVSF): a state-registered yard that scraps old vehicles and issues the Certificate of Deposit owners use to claim rebates on a new one. It needs a ₹1 lakh application fee and a ₹10 lakh bank guarantee, and since 1 April 2025 an RVSF also registers with the State Pollution Control Board under the End-of-Life Vehicles Rules. We prepare and file both applications; plant design and machinery stay with your technical consultants.
What it is
A Registered Vehicle Scrapping Facility, or RVSF, takes in old and unfit vehicles, dismantles them safely and sends the materials for recycling. It is connected to the VAHAN vehicle database. So it can issue a digitally signed Certificate of Deposit (CD) when it receives a vehicle, and a Certificate of Vehicle Scrapping (CVS) once the vehicle is scrapped. Owners use the CD to claim road-tax rebates and registration-fee waivers on a new vehicle.
Vehicle scrapping facility registration comes from the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021, notified as G.S.R. 653(E) on 23 September 2021 and amended by G.S.R. 695(E) on 13 September 2022. The registration authority is appointed by your state government. On top of that, the Environment Protection (End-of-Life Vehicles) Rules, 2025, in force from 1 April 2025, make every RVSF register with its State Pollution Control Board and file quarterly returns.
Who it applies to
You are starting a scrapping business
Any legal entity with PAN and GST registration can own and run an RVSF, from an individual to a company or trust.
You run a scrap yard and want to go formal
Think of an NCR scrap yard that has cut old cars for years. Registration lets it issue the CD owners need for their rebate. An informal yard simply cannot.
You make or sell vehicles
Vehicle producers have EPR targets under the ELV Rules, 2025. In practice, they meet them with certificates from their own RVSF or someone else’s. Some dealer groups set up a facility of their own.
Why it matters
Give owners the certificate they need
Owners use the Certificate of Deposit to claim motor vehicle tax rebates on a new purchase. The rebate is up to 25% for non-transport and 15% for transport vehicles, plus a waiver of the registration fee.
Sell EPR certificates to producers
Under the ELV Rules, producers meet their scrapping targets by buying EPR certificates generated by RVSFs. You earn from the certificates as well as the scrap metal.
Plan on a ten-year licence
Registration runs for 10 years and is renewable for another 10 years at a time, so you can plan land, plant and finance around it.
Documents required
About the applicant
- Certificate of incorporation, or other proof of the entity’s registration
- PAN and GST registration
- ID and address proof of the authorised signatory
- Board resolution or authority letter
About the site
- Ownership or lease papers for the land
- Site layout showing depollution, dismantling and storage zones
- Consent to Establish and Consent to Operate from the State Pollution Control Board
- Equipment and process details
Fees and guarantees
- Application fee of ₹1 lakh per facility
- Bank guarantee of ₹10 lakh per facility
- Form 5 application to the SPCB under the ELV Rules, 2025
How it works
Choose the site and the vehicle mix
Two-wheelers, cars and heavy trucks need different space and equipment. Some states also fix a minimum land area in their scrapping policy. Say you plan a yard on an industrial plot near Faridabad for cars and light commercial vehicles: we check the plot size, zoning and access against the policy before you pay any fee.
Set up the entity and registrations
We form a private limited company or LLP if you need one, and take PAN, GST and Udyam.
Get pollution board consent
We file the Consent to Establish and then Consent to Operate. Here is the catch: a scrapping yard drains oils and coolants and pulls out batteries and tyres. The board will look hard at how you store and dispose of each one.
Apply to the state registration authority
We prepare the RVSF application with the ₹1 lakh fee and ₹10 lakh bank guarantee. The authority must dispose of it within 60 days, usually after inspecting the site.
Register under the ELV Rules and go live
We file Form 5 with the SPCB, help you with VAHAN onboarding through the state authority and set up the quarterly return routine.
Timelines
Application decided in 60 days
The registration authority must dispose of an RVSF application within 60 days of the date it is filed.
Quarterly return by the 30th
Under the ELV Rules, an RVSF files a quarterly return in Form 3 by the 30th of the month after each quarter.
Renewal every 10 years
The registration is valid for 10 years and renewable for 10 years at a time. Keep the bank guarantee valid for the whole period.
What happens if you skip a step
No CD, no customers
An unregistered yard cannot issue a Certificate of Deposit. Owners lose their tax rebate, so they will take the vehicle to a registered facility instead.
Environmental compensation
The ELV Rules allow environmental compensation equal to the damage caused to the environment or public health, on top of action under the Environment (Protection) Act, 1986.
Penalty under Section 15
Breach of rules made under the EP Act can attract a penalty of ₹10,000 to ₹15 lakh, plus up to ₹10,000 a day while it continues.
Frequently asked questions
Who issues the RVSF registration?
The registration authority appointed by your state government issues it, under the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021. In most states this sits with the transport department. Since 1 April 2025, the same facility must also register with the State Pollution Control Board under the End-of-Life Vehicles Rules, 2025. We handle both tracks together, so neither one holds up the other.
What is the fee and bank guarantee for an RVSF?
The application fee is ₹1 lakh per facility, and you also furnish a bank guarantee of ₹10 lakh per facility. Both are set by the 2021 Rules, though a state can prescribe its own processing fee. Pollution board consent fees are separate and depend on the state and project cost. Your bank will need the guarantee in a set format, and we coordinate that with the bank early.
How long is an RVSF registration valid?
It is valid for 10 years and can be renewed for another 10 years at a time. Renewal depends on your compliance record, so quarterly returns, VAHAN entries and pollution consents need to stay in order. Your consent to operate has its own validity under the state board and must be renewed separately. We keep one calendar for all of these dates, so nothing expires unnoticed.
What is a Certificate of Deposit?
It is the digitally signed certificate an RVSF issues when an owner hands over a vehicle for scrapping. It is generated through VAHAN and is proof that ownership has passed to the facility. The owner presents it when buying a new vehicle to claim a motor vehicle tax rebate, up to 25% for non-transport and 15% for transport vehicles, plus a registration-fee waiver. The certificate is tradable, so it holds value for the owner.
Can a proprietorship or partnership run an RVSF?
Yes. The rules allow any legal entity, including an individual, firm, society or trust, to own and operate an RVSF, provided it holds PAN and GST registration. Many applicants still prefer a company or LLP, because banks look at the balance sheet before issuing a ₹10 lakh guarantee and funding the plant. We help you pick the structure that suits your funding plan.
What do the End-of-Life Vehicles Rules, 2025 change for an RVSF?
They add an environmental layer from 1 April 2025. An RVSF applies to the State Pollution Control Board in Form 5 and files quarterly returns in Form 3 by the 30th of the following month. It also keeps records of every vehicle received and the weight of each waste stream. Producers meet their targets by buying EPR certificates generated by RVSFs. Clean records are what make those certificates saleable.
How long does it take to get an RVSF registration?
The registration authority must dispose of the application within 60 days of filing. Before that, you need the land, layout and pollution board consents in place, which usually takes longer than the RVSF application itself. We start the consent work as soon as the site is fixed, so both files move in parallel.
Do vehicle owners have a deadline to scrap end-of-life vehicles?
Yes. Under the ELV Rules, 2025, an owner must deposit an end-of-life vehicle at an RVSF or a collection centre within 180 days of it becoming an end-of-life vehicle. Bulk consumers owning more than 100 vehicles also register with the SPCB and file an annual return by 30 June. For an RVSF, these rules steady the flow of vehicles into the yard.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
| Government cost | Amount |
|---|---|
| RVSF application fee (per facility) | ₹1,00,000, or as the state prescribes |
| Bank guarantee (per facility) | ₹10,00,000 |
| Pollution board consent fees | As per your state board and project cost |
Ready to begin?
Share your site location and the vehicles you plan to scrap, and we will map your vehicle scrapping facility registration and pollution board filings from day one.