Automobile Waste Scrap License in India-Procedure, Fees, and Required Documents

Updated on March 10, 2025 03:27:16 PM

The car industry is a very big part of India, and as more cars are being made, there is more waste from cars that people don't use anymore. This waste has old car parts, batteries, oils, and other things that can be bad for the environment and people's health if they are not taken care of properly. To fix this problem, the government in India has made rules that say companies that want to recycle or get rid of this car waste need to have a special permission called a scrap license.

Getting a license to recycle car parts makes your business legal and lets you take advantage of government benefits, like lower road taxes and cheaper new car prices. This program is important for encouraging eco-friendly habits and cutting down on the pollution from old cars in India.

What is an Automobile waste scrap license in India?

The license for scrapping old cars in India is a key set of rules designed to handle the recycling and disposal of vehicles that have reached the end of their useful lives. This program is a part of the government's larger plan to update the country's vehicles, cut down on pollution, and encourage eco-friendly methods in the car industry.

The AVSF needs to make sure that they properly take apart and recycle things, including safely getting rid of dangerous stuff like oils and batteries. They also need to keep track of everything they do and have the right machines to work efficiently.

Getting a license to recycle car parts makes your business legal and lets you take advantage of government benefits, like lower road taxes and cheaper new car prices. This program is important for encouraging eco-friendly habits and cutting down on the pollution from old cars in India.

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Types of Automobile waste scrap licenses in India

Car waste involves various materials, each needing particular methods for handling and recycling.

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Documents are required for the Automobile waste scrap license in India

To obtain an Automobile waste scrap license in India, several key documents are required to ensure compliance with regulatory standards.

  1. Importer-exporter code (IEC)
  2. Goods and service tax (GST) registration
  3. Registration with custom
  4. Environmental Clearance Certificate
  5. Pre-shipment certificate
  6. Commercial invoice
  7. Packing list
  8. Bill of Lading or Airway Bill
  9. Certificate of Origin
  10. Insurance Certificate
  11. Letter of Credit or Advance Payment Receipt
  12. Bureau of Indian Standards (BIS) Certification
  13. Customs Declaration Form
  14. Import license (if required)
Documents are required for the Automobile waste scrap license
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Application process for obtaining an Automobile waste scrap license in India

This is the application process for obtaining a biomedical waste management scrap recycling license in India.

Step 1: Application Submission

Form-1: The applicant has to complete an application form appropriately called Form-1 and hand it over to the Registration Authority of the particular state government or union territory.

Note: Processing Fee: It is required that an application be accompanied by a non-refundable processing fee.

Step 2: Documentation Requirements

Applicants are required to submit various documents, including Applicants are required to submit various documents.

Step 3: Single-Window Clearance Portal

It has set up a single window clearance mechanism for the submission of applications and renewals for FDI. This has been made easier by this portal, whereby the applicant can follow the status of his or her application.

Step 4: Verification and Approval

After submission of the application and documents, the authorities shall peruse through all the documents submitted, conduct physical inspections as and when necessary, and ensure that all laws have been complied with.

Step 5: License Validity and Renewal

The RVSF license is initially issued for a period of ten years and may be renewed for further terms of ten years, subject to compliance with the current legal requirements.

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Fees for an Automobile waste scrap license in India

The fees for obtaining an Automobile Waste scrap license in India depend on various factors such as the type of scrap, scale of operations, and the issuing authority.

Particulars Government Fees (INR)
Application Fees ₹10,000 to ₹50,000
License Fee ₹1,00,000 to ₹5,00,000
Annual Renewal Fees ₹50,000 to ₹2,00,000
Environmental Compliance Fees ₹50,000 to ₹2,00,000
Security Deposit ₹1,00,000 to ₹1,000,000
Inspection Fees ₹20,000 to ₹50,000
Consent Fees from Pollution Control Boards ₹1,00,000 to ₹5,00,000
Training and Certification Fees ₹10,000 to ₹50,000
Local Body NOC Fees ₹10,000 to ₹50,000

Professional fee for a Scrap license starts from ₹ 99,000.

Note: The aforementioned Fees are exclusive of GST.

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Conclusion

The process of scrapping a car involves taking it and your application to a licensed scrapyard. There, they check your identity, give you a certificate, and pay you. The scrapyard must then remove all fluids, take apart the car, and safely get rid of any dangerous materials.

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Frequently Asked Questions

What is the goal of the Automobile waste scrap license in India?

The Automobile waste scrap license in India is designed to control how end-of-life vehicles are collected, stored, moved, taken apart, and recycled. It makes sure that everyone involved in dealing with this kind of waste follows the rules set by the Vehicle Scrapping Policy and does so in a way that protects the environment.

Who has to get this license?

Anyone who owns and runs a facility for taking apart and scrapping vehicles, known as an Authorized Vehicle Scrapping Facility (AVSF), needs to get permission from the government body in their state or union territory.

What do I need to do to get the license?

To get the license, you need to fill out an application (Form-1) and pay a non-refundable fee. You also need to provide some documents, like your company's certificate of incorporation, your GST registration, and proof that you follow the rules set by the CPCB, and develop a plan for your facility. Additionally, you must get permission from the SPCB or PCC to run your facility.

What are the benefits of getting a permit for recycling car scraps?

Getting a permit makes the business legal and lets owners take advantage of government benefits such as reduced road taxes and lower prices for new cars. It also encourages eco-friendly methods and decreases the harm old cars cause to the environment.

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