Detailed Project Report (DPR) on REGISTERED VEHICLE SCRAPPING FACILITY (CAPACITY: 20 NUMBERS PER DAY OF TWO WHEELER LIKE SCOOTER, MOTORCYCLE, E-RICKSHAW AND 10 NUMBERS PER DAY OF FOUR WHEELERS LIKE CARS AND COMMERCIAL VEHICLES)

Detailed Project Report (DPR) on REGISTERED VEHICLE SCRAPPING FACILITY (CAPACITY: 20 NUMBERS PER DAY OF TWO WHEELER LIKE SCOOTER, MOTORCYCLE, E-RICKSHAW AND 10 NUMBERS PER DAY OF FOUR WHEELERS LIKE CARS AND COMMERCIAL VEHICLES)
Code #4894
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India
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Industry Overview

Vehicle recycling involves dismantling end-of-life vehicles to recover reusable spare parts and recyclable materials. As vehicles reach the end of their useful life, they become valuable sources of components, creating a specialized industry that includes wrecking yards, automobile dismantling facilities, car spare parts suppliers, and registered vehicle scrapping facilities (RVSFs). Although vehicle recycling has existed for many years, vehicle manufacturers have increasingly become involved in the process. Car crushers are commonly used to compress scrapped vehicle bodies, reducing their volume for transportation to steel mills and other recycling facilities.

The vehicle recycling process is complex because it involves recovering numerous components while safely handling hazardous materials. Operations typically begin with vehicle inspection and inventory. Wheels, tyres, batteries, and catalytic converters are removed, followed by the draining and collection of engine oil, coolant, transmission fluid, refrigerants, and fuel. Valuable components, including electronic modules, alternators, starter motors, infotainment systems, engines, and transmissions, may be recovered for resale or remanufacturing if they remain serviceable and economically viable.

After reusable components and hazardous substances have been removed, the remaining vehicle shell can be processed for material recovery. Traditional dismantling relies heavily on manual labour, which can make the recovery of lower-value components uneconomical. Efficient vehicle recycling therefore requires appropriate equipment, systematic depollution procedures, safe material handling, and effective separation technologies to maximize resource recovery while minimizing environmental risks.

Cost Estimation

Particulars Details
Plant Capacity 30 Nos/day
Land & Building ( 3000 Sq.Mtr) Rs. 1.92 Cr
Plant & Machinery Rs. 91.00 Lacs
Working Capital for 2 Month Rs. 2.01 Cr
Total Capital Investment Rs. 5.05Cr
Rate of Return 35%
Break Even Point 51%

Content Index

  • INTRODUCTION
  • WOMEN-OWNED RVSF IN ALIGARH: SUBSIDIES AND SETUP GUIDE
  • SUMMARY
  • 1. STATE CAPITAL SUBSIDY (UP MSME PROMOTION POLICY 2022)
  • 2. INTEREST SUBSIDY
  • 3. OTHER STATE BENEFITS FOR MSMES
  • 4. INDUSTRIAL INVESTMENT & EMPLOYMENT PROMOTION POLICY 2022
  • 5. CENTRAL LOAN SCHEMES FOR WOMEN
  • 6. RVSF REGISTRATION (NEEDED BEFORE ANY SUBSIDY)
  • 7. QUESTIONS TO SETTLE WITH THE DIC
  • 8. MARKET REALITY
  • 9. INFORMATION NEEDED TO ESTIMATE YOUR SUBSIDY
  • SOME POINTS TO NOTE ABOUT THE SCRAPPING PROCESS ARE AS FOLLOWS:
  • IMPORTANT DEFINITION REGARDING SCRAPING OF VEHICLE
  • POWERS AND OBLIGATIONS OF RVSF
  • DISINCENTIVES FOR KEEPING OLD VEHICLES:
  • USES AND APPLICATION
  • WILDLIFE PROTECTION
  • CONSERVATION OF ENERGY AND RESOURCES
  • MAKE SPACE
  • BIS SPECIFICATION
  • OPERATION OF VEHICLE SCRAP YARD
  • TRANSPORTATION
  • DE-POLLUTION SEQUENCE
  • FOR LIQUID HAZARDOUS SUBSTANCES
  • SHREDDING AND SEPARATION AND PROCESSING OF RESIDUES
  • TECHNOLOGIES FOR THE ELV RECYCLING PROCESS
  • OTHER TECHNOLOGIES
  • TECHNOLOGIES FOR TREATMENT OF SEGREGATED MATERIALS
  • INPUT / OUTPUT DATA
  • PROCESS FLOW CHART
  • RECOMMENDED TOOLS & EQUIPMENT FOR PRE-TREATMENTS:
  • UTILITIES PER MONTH (ESTIMATED)
  • PLANT LAYOUT
  • SUPPLIERS OF PLANT AND MACHINERY
  • 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
  • CAR SCRAP DEALERS

Appendix

  • 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)

Frequently Asked Questions

A vehicle recycling or scrapping facility dismantles end-of-life vehicles to recover reusable components and recyclable materials safely. The process typically includes vehicle inspection, parts inventory, removal of reusable components, extraction of hazardous fluids, and separation of materials such as steel, aluminium, plastics, and other recoverable substances. Registered vehicle scrapping facilities (RVSFs) operate within the applicable regulatory framework. Properly managed facilities help reduce waste, recover valuable resources, and minimize the environmental risks associated with abandoned or improperly dismantled vehicles.

Vehicle scrapping generally involves receiving and inspecting the vehicle, recording its details, removing reusable parts, and carrying out depollution before dismantling or shredding. Batteries, tyres, catalytic converters, engines, and other components may be recovered where appropriate. Fuel, lubricants, coolant, refrigerants, and other hazardous substances must be collected and handled safely. The remaining materials are separated for recycling or authorized disposal. The precise sequence depends on the vehicle, the facility's equipment, environmental requirements, and applicable vehicle scrapping regulations.

A vehicle scrapping plant may require vehicle lifting and handling equipment, depollution tools, fluid extraction systems, dismantling tools, weighing equipment, material storage facilities, and machinery for size reduction or shredding. Supporting infrastructure can include electrical systems, air compressors, fire protection equipment, and pollution control systems. The equipment selection depends on the plant's capacity, the types of vehicles handled, the extent of component recovery, and the intended recycling processes. A suitable plant layout should provide safe movement of vehicles, separate hazardous material handling areas, and efficient material flow.

Depollution is essential because end-of-life vehicles contain fluids and components that can harm people and the environment if handled improperly. Fuel, engine oil, transmission fluid, coolant, refrigerants, and batteries require appropriate collection, storage, and treatment. Removing these substances before shredding or further dismantling helps prevent soil and water contamination, reduces fire and exposure risks, and improves the quality of recovered materials. Facilities should use suitable containment systems, trained personnel, documented handling procedures, and authorized waste management channels in accordance with applicable environmental and safety requirements.

The profitability of a vehicle scrapping business depends on vehicle acquisition costs, the resale value of reusable components, the recovery of recyclable materials, operating expenses, and plant utilization. Labour, electricity, equipment maintenance, transportation, waste treatment, land, and regulatory compliance also affect operating costs. Efficient dismantling and inventory management can improve recovery rates and reduce unnecessary handling. Market prices for scrap metals and demand for used spare parts may fluctuate, so project evaluation should examine realistic sourcing arrangements, potential buyers, working capital requirements, and sensitivity to changes in material prices.

An RVSF is a Registered Vehicle Scrapping Facility authorized to undertake vehicle scrapping activities under the applicable regulatory framework. Registration is important because it establishes the facility's eligibility to operate within the relevant requirements for vehicle receipt, documentation, depollution, dismantling, and material recovery. Entrepreneurs should verify the current registration procedure, infrastructure standards, environmental approvals, recordkeeping obligations, and applicable state requirements before commencing operations. Any subsidy or financial assistance should be assessed separately against the current scheme conditions, eligibility criteria, application deadlines, and approval process.

A vehicle recycling plant layout should support safe vehicle movement, efficient dismantling, controlled depollution, and organized storage of recovered materials. Separate areas should be planned for vehicle reception, inspection, reusable parts, hazardous fluids, batteries, dismantling, shredding where applicable, and recyclable material storage. Access routes, fire protection, ventilation, drainage, spill containment, electrical infrastructure, and emergency exits should be considered during planning. The final layout depends on site dimensions, operating capacity, equipment requirements, environmental conditions, and applicable building and safety regulations. Good layout planning can reduce handling time, congestion, and operational risks.
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