How will the AVSFs generate employment in India?

An authorised vehicle scrapping facility (AVSF) in India has the potential to generate employment. It can generate work opportunities through various direct and indirect channels. The Government of India introduced the Vehicle Scrappage Policy recently. Notably, the policy tends to remove old and polluting vehicles from the roads. Here's how such a facility could generate employment:

Scrapping Process

The primary employment would come from the scrapping process itself. Skilled workers will be required. They will engage in dismantling vehicles and salvaging valuable parts. Also, the workers will be employed to separate materials for recycling. This process needs mechanics, welders, electricians, and other skilled labour.

Recycling Industry

The materials salvaged from scrapped vehicles can be recycled. It includes plastics and metals. This will lead to the establishment of recycling industries. These industries will need workers for sorting and processing. Workers are also needed to manage recycled materials.

Manufacturing and Fabrication

The manufacturing sectors will also grow with the increasing demand for recycled materials. The reason is that these sectors use these materials. This can create jobs in industries that rely on these recycled materials. The list includes automotive manufacturing, construction and others.

Supply Chain

A scrapping facility will need a supply chain to transport vehicles to the facility. It will also need the chain to move materials out. This will generate employment in logistics. Transportation and warehousing will also generate job opportunities.

Need for experienced workers for vehicle dismantling

Setting up an AVSF also calls for a professional workforce for vehicle dismantling. In return, this generates employment for conducting proper dismantling processes and other people related to a similar approach like recycling.

Green Jobs

Green jobs, often called "green-collar jobs," are opportunities that contribute to environmental sustainability. These also aim to conserve the natural resources. These jobs are focused on promoting clean energy and reducing pollution. Also, the jobs help mitigate climate change and advance environmentally friendly practices across many economic sectors. Green jobs are important in shifting to a more sustainable and low-carbon future. Setting up an AVSF does promote green jobs.

Research and Development

The scrapping policy may incentivise the development of new technologies and processes. This will help focus on efficient and environmentally friendly vehicle scrapping. This will generate research and development jobs in the automotive and recycling sectors.

Support Services

The facility will need administrative staff, security personnel and managerial roles. Also, it will need other support staff to ensure the smooth operation of the facility.

Logistics and Transportation Jobs

An authorised vehicle scrapping facility can generate logistics and transportation jobs through various stages of its operation, contributing to employment opportunities in the sector.

Vehicle Collection and Transportation

Scrapped and end-of-life vehicles (ELVs) must be collected from various locations. They must then be transported to the scrapping facility. This requires a network of logistics professionals, truck drivers and transportation coordinators. They will help to manage the collection and delivery process efficiently.

Material Handling and Sorting

Within the scrapping facility, workers are needed to manage the incoming vehicles. They also help in sorting vehicles based on their components and materials. Workers also prepare automobiles for dismantling. This involves logistics and warehouse staff who handle the movement of vehicles within the facility.

Parts Distribution

Salvageable parts from scrapped vehicles can be resold or reused. This requires a distribution network to transport these parts to buyers or manufacturers. Logistics professionals are needed to manage the distribution process.

Recycled Material Transport

Scrapping gives metals, plastics, and rubber. These materials can be easily recovered. These can then be sold to manufacturers. Transporting these recycled materials to buyers or recycling centres creates additional logistics and transportation jobs.

Waste Management

Non-recyclable waste generated during the scrapping must be appropriately disposed of or treated. Logistics personnel may be required to manage the transportation of this waste. It can be taken to the appropriate disposal or treatment facilities.

Documentation and Record-Keeping

Every stage of the scrapping process requires documentation, including vehicle details, parts inventory, and material shipment records. This administrative work often involves logistics coordinators and support staff.

Maintenance and Repair Services

Vehicles used for transportation require regular maintenance and repair. These include trucks and vans. This creates opportunities for mechanics, technicians and support staff.

Fleet Management

If the scrapping facility operates its fleet of vehicles, it would require fleet managers, drivers, mechanics, and other related roles to ensure efficient operations.

Expansion and Scaling

Logistics and transportation networks must also expand with the increasing volume of scrapped vehicles or scrapping facilities. This is important to accommodate the growth, leading to more job opportunities.

Last-Mile Delivery

If the facility sells recycled materials or components, last-mile delivery to buyers could generate additional transportation and logistics roles.

Technology Implementation

With technology adoption for tracking, route optimisation, and supply chain management, logistics professionals with tech skills might be in demand.

Skill Development

Establishing vehicle scrapping facilities would require a skilled workforce, which can lead to the development of training programs and vocational courses to equip workers with the necessary skills. This, in turn, can generate jobs in education and vocational training. Creating skilled development programs will give jobs not only to the workers but also to the mentors.

Environmental Benefits

While not direct employment, reducing pollution due to removing old vehicles can lead to improved health outcomes. A healthier workforce can be more productive & engaged, contributing to economic growth. Indeed, there are various environmental benefits offered by an AVSF .

Entrepreneurship Opportunities

The scrapping policy encourages entrepreneurs to enter the vehicle scrapping and recycling sector. This generates new business ventures and potentially more job opportunities.

Circular Economy

The scrapping facility contributes to a circular economy by recycling materials and reducing waste. This approach can result in long-term sustainability. Additionally, it creates more stable and long-lasting jobs.


Establishing and operating an authorised vehicle scrapping facility necessitates a well-organised logistics and transportation network. This ensures the smooth movement of vehicles, parts and materials. As a result, this creates a range of job opportunities in various logistics-related roles. Moreover, it contributes to employment growth in the sector.

However, it's important to note that the extent to which a vehicle scrapping facility generates employment would depend on various factors. The factors include the scale of implementation and the adoption of modern and efficient technologies. The factors further include the regulatory environment and the overall economic conditions in India. To maximise the employment potential, stakeholders must collaborate and plan effectively.

Diksha Khiatani

A writer by day and a reader at night. Emerging from an Engineering background, Diksha has completed her M. Tech in Computer Science field. Being passionate about writing, she started her career as a Writer. She finds it interesting and always grabs time to research and write about Environmental laws and compliances. With extensive knowledge on content writing, she has been delivering high-quality write-ups. Besides, you will often find her with a novel and a cuppa!

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