Detailed Project Report (DPR) on Vehicle Scrap Yard (PV Scrap Vehicle 600 Nos. Per Month and CV Scrap Vehicle 66 Nos. Per Month)

VEHICLE SCRAP YARD (PV SCRAP VEHICLE 600 NOS. PER MONTH AND CV SCRAP VEHICLE 66 NOS. PER MONTH)

[EIRI/EDPR/4677] J.C.: 2894XL

Vehicle recycling is the dismantling of vehicles for spare parts. At the end of their useful life, vehicles have value as a source of spare parts and this has created a vehicle dismantling industry. The industry has various names for its business outlets including wrecking yard, auto dismantling yard, car spare parts supplier, and recently, auto or vehicle recycling. Vehicle recycling has always occurred to some degree but in recent years manufacturers have become involved in the process. A car crusher is often used to reduce the size of the scrapped vehicle for transportation to a steel mill.

The process of recycling a vehicle is extremely complicated as there are many parts to be recycled and many hazardous materials to remove. Briefly, the process begins with incoming vehicles being inventoried for parts. The wheels and tires, battery and catalytic converter are removed. Fluids, such as engine coolant, oil, transmission fluid, air conditioning refrigerant, and gasoline, are drained and removed. Certain high value parts such as electronic modules, alternators, starter motors, infotainment systems - even complete engines or transmissions - may be removed if they are still serviceable and can be profitably sold on; either in "as-is" used condition or to a remanufacturer for restoration. This process of removing higher value parts from the lower value vehicle body shell has traditionally been done by hand. As the process is labour intensive, it is often uneconomical to remove many of the parts.

A technique that is on the rise is the mechanical removal of these higher value parts via machine based vehicle recycling systems (VRS). An excavator or materials handler equipped with a special attachment allows these materials to be removed quickly and efficiently. Increasing the amount of material that is recycled and increasing the value the vehicle dismantler receives from an end-of-life vehicle (ELV). 

After all of the parts and products inside are removed, the remaining shell of the vehicle is sometimes subject to further processing, which includes removal of the air conditioner evaporator and heater core, and wiring harnesses. The remaining shell is then crushed flat, or cubed, to facilitate economical transportation in bulk to an industrial shredder or hammer mill, where the vehicles are further reduced to fist-sized chunks of metal. Glass, plastic and rubber are removed from the mix, and the metal is sold by multiple tons to steel mills for recycling.

COST ESTIMATION

Plant Capacity            PV Scarp Vehicles 600 Nos./Month and CV Scrap Vehicles 66 Nos./Month

Land & Building (2 Acres)    Rs. 4.92 Cr    

Plant & Machinery                    Rs. 2.00 Cr 

Working Capital for 1 Month    Rs. 2.93 Cr 

Total Capital Investment          Rs. 10.14 Cr 

Rate of Return                          29%

Break Even Point                      55%

CONTENTS

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

VALIDITY AND RENEWAL OF AUTHORIZATION:

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

HANDLING:

STORAGE:

PRE-CONDITIONS FOR STORING ELVS

TRANSPORTATION

DE-POLLUTION PROCESS

DE-POLLUTION SEQUENCE

A. BEFORE LIFTING VEHICLE

B. LIFT THE VEHICLE ON DE-POLLUTION FRAME OR LIFTING DEVICE

DRAIN FUEL TANK

C. REMOVE VEHICLE FROM DE-POLLUTION FRAME OR LIFTING DEVICE

FOR LIQUID HAZARDOUS SUBSTANCES

A. WASTE OILS

B. TRANSMISSION OIL

C. BRAKE FLUIDS & CLEANERS

D. FUEL AND FUEL FILTERS

E. COOLANT (ANTIFREEZE)

FOR SOLID HAZARDOUS SUBSTANCES

A. LEAD ACID BATTERIES

B. AIR FILTER

G. RUBBER PARTS

H. GLASS PARTS

I. ELECTRONIC PARTS

J. REFRIGERANT GASES

K. AIRBAGS

L. CATALYST

DISMANTLING & SEGREGATION

IN THE CASE OF M1 CATEGORY VEHICLES:

IN THE CASE OF LL AND L2 CATEGORY VEHICLES:

SHREDDING AND SEPARATION AND PROCESSING OF RESIDUES

TECHNOLOGIES FOR THE ELV RECYCLING PROCESS

TECHNOLOGIES FOR PROCESSING RESIDUES - SEGREGATION OF NON-FERROUS METAL FRACTIONS:

OTHER TECHNOLOGIES

TECHNOLOGIES FOR TREATMENT OF SEGREGATED MATERIALS

INPUT/OUTPUT DATA

PROCESS FLOW CHART

RECOMMENDED TOOLS & EQUIPMENT FOR PRE-TREATMENTS:

UTILITIES PER MONTH (ESTIMATED)

SUPPLIERS OF PLANT AND MACHINERY

SUPPLIERS FOR VEHICLE RECYCLING PLANT

SUPPLIERS OF DG SETS

SUPPLIERS OF EOT CRANE

SUPPLIERS OF POWER TRANSFORMERS

SUPPLIERS OF ELECTRICAL PANEL

SUPPLIERS OF AIR POLLUTION CONTROL EQUIPMENTS

SUPPLIERS OF AIR COMPRESSORS

SUPPLIERS OF PLATFORM WEIGHING MACHINE

SUPPLIERS OF MATERIAL HANDLING EQUIPMENTS

SUPPLIERS OF FIRE FIGHTING EQUIPMENTS

PROJECT CYCLE

PRINCIPLES OF PLANT LAYOUT

MAJOR PROVISIONS IN ROAD PLANNING FOR MULTIPURPOSE SERVICE ARE:

PLANT LOCATION FACTORS

PRIMARY FACTORS

RAW-MATERIAL SUPPLY:

MARKETS:

POWER AND FUEL SUPPLY:

WATER SUPPLY:

CLIMATE:

TRANSPORTATION:

WASTE DISPOSAL:

LABOR:

REGULATORY LAWS:

TAXES:

SITE CHARACTERISTICS:

COMMUNITY FACTORS:

FLOOD AND FIRE CONTROL:

GENERATION & MANAGEMENT OF WASTES/GREEN BELT

WASTE WATER (ESTIMATED)

WASTE (ESTIMATED)

HEALTH SAFETY AND ENVIRONMENT

ANTICIPATED ENVIRONMENTAL IMPACTS

CONSTRUCTION PHASE

OPERATION PHASE

MITIGATION MEASURES (PROPOSED)

HSE REQUIREMENT

PROPOSED IMPLEMENTATION SCHEDULE

PROJECT FINANCIALS

BASIS & PRESUMPTIONS (FOR PROFITABILITY WORKINGS)

PRELIMINARY PLANT LAYOUT

CAR SCRAP DEALERS

APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING

03. PLANT AND MACHINERY

04. OTHER FIXED ASSESTS

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 YEARS)