Industry Overview
Vehicle recycling involves dismantling end-of-life vehicles to recover reusable spare parts, valuable materials, and recyclable components. The activity has developed into a specialized industry with various business formats, including wrecking yards, auto dismantling facilities, spare parts suppliers, and modern vehicle recycling centres. Over time, vehicle manufacturers and organized recyclers have become increasingly involved in improving recovery and recycling processes.
The recycling process includes inspection, removal of reusable components, recovery of fluids, and safe handling of hazardous materials. Components such as batteries, catalytic converters, electronic modules, engines, transmissions, and other serviceable parts may be recovered for reuse or remanufacturing. Modern vehicle recycling systems use mechanical equipment to improve efficiency and increase material recovery from end-of-life vehicles.
After dismantling and depollution, remaining vehicle shells are processed through crushing and shredding operations. Ferrous and non-ferrous metals, plastics, glass, and rubber are separated for recycling and further industrial use. Vehicle recycling helps recover resources, reduce waste generation, and support sustainable material management practices.
Cost Estimation
| Particulars | Cost |
|---|---|
| Plant Capacity | 4 Nos/Day |
| Land & Building (4000 sq.mt.) | Rs. 2.28 Cr |
| Plant & Machinery | Rs. 44.00 Lacs |
| Working Capital for 1 Month | Rs. 53.50 Lacs |
| Total Capital Investment | Rs. 3.35 Cr |
| Rate of Return | 42% |
| Break Even Point | 48% |
Content Index
- INTRODUCTION
- VEHICLE SCRAPPAGE POLICY
- SOME INCENTIVES FOR SCRAPPING OLD VEHICLES AND BUYING NEW ONES ARE AS FOLLOWS:
- CHALLENGES
- RTO RULES FOR SELLING OF CARS AS SCRAP IN INDIA
- SOME POINTS TO NOTE ABOUT THE SCRAPPING PROCESS ARE AS FOLLOWS:
- VALUATION OF OLD CARS:
- CHALLENGES FOR INDIAN ECONOMY
- IMPORTANT DEFINITION REGARDING SCRAPING OF VEHICLE
- POWERS AND OBLIGATIONS OF RVSF
- CONDITIONS OF ELIGIBILITY OF RVSF
- ELIGIBILITY CONDITIONS
- REGISTRATION OF RVSF
- CRITERIA FOR SCRAPPING OF VEHICLE
- CERTIFICATE OF VEHICLE SCRAPPING
- APPLICABLE RULES /ACTS
- BENEFITS OF SCRAPING POLICY
- DISINCENTIVES FOR KEEPING OLD VEHICLES:
- USES AND APPLICATION
- ENVIRONMENTAL BENEFITS
- WILDLIFE PROTECTION
- CONSERVATION OF ENERGY AND RESOURCES
- MAKE SPACE
- BIS SPECIFICATION
- OPERATION OF VEHICLE SCRAP YARD
- THE COLLECTION/DISMANTLING/DE-POLLUTING/SHREDDING FACILITY SHALL TAKE ALL THE STEPS TO:
- STORAGE:
- PRE-CONDITIONS FOR STORING ELVS
- TRANSPORTATION
- DE-POLLUTION PROCESS
- DISMANTLING & SEGREGATION
- SHREDDING AND SEPARATION AND PROCESSING OF RESIDUES
- TECHNOLOGIES FOR THE ELV RECYCLING PROCESS
- INPUT/OUTPUT DATA
- PROCESS FLOW CHART
- RECOMMENDED TOOLS & EQUIPMENT FOR PRE-TREATMENTS:
- UTILITIES PER MONTH (ESTIMATED)
- SUPPLIERS OF PLANT AND MACHINERY
- PROJECT CYCLE
- PRINCIPLES OF PLANT LAYOUT
- PLANT LOCATION FACTORS
- GENERATION & MANAGEMENT OF WASTES/GREEN BELT
- HEALTH SAFETY AND ENVIRONMENT
- PROPOSED IMPLEMENTATION SCHEDULE
- PROJECT FINANCIALS
- BASIS & PRESUMPTIONS (FOR PROFITABILITY WORKINGS)
- PRELIMINARY PLANT LAYOUT
- CAR SCRAP DEALERS
Appendix
- APPENDIX – A:
- 01. PLANT ECONOMICS
- 02. LAND & BUILDING
- 03. PLANT AND MACHINERY
- 04. OTHER FIXED ASSETS
- 05. FIXED CAPITAL
- 06. RAW MATERIAL
- 07. SALARY AND WAGES
- 08. UTILITIES AND OVERHEADS
- 09. TOTAL WORKING CAPITAL
- 10. TOTAL CAPITAL INVESTMENT
- 11. COST OF PRODUCTION
- 12. TURN OVER/ANNUM
- 13. BREAK EVEN POINT
- 14. RESOURCES FOR FINANCE
- 15. INSTALMENT PAYABLE IN 5 YEARS
- 16. DEPRECIATION CHART FOR 5 YEARS
- 17. PROFIT ANALYSIS FOR 5 YEARS
- 18. PROJECTED BALANCE SHEET FOR (5-10 YEARS)
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