MSTC License for Scrap: Complete Step-by-Step Guide for Scrap Traders & Recycling Businesses in India
Starting or running a scrap trading or recycling business in India is a good idea. It helps you earn money and also helps the environment. But to do this business legally, you must follow government rules. One of the most important approvals is the MSTC License for Scrap.
Many people feel confused when they hear words like MSTC, ROHS, BSPCB setup, or PPCB NOC. They sound difficult, but they are actually simple when explained properly.
What Is MSTC License for Scrap?
MSTC is a government company of India. Its full name is Metal Scrap Trade Corporation Limited. MSTC works under the Ministry of Steel.
The MSTC License for Scrap is an online registration that allows scrap dealers and recyclers to buy or sell scrap legally through government portals.
If you want to deal in:
-
Metal scrap
-
E-waste
-
Plastic scrap
-
Battery scrap
-
Electronic items
then MSTC registration is compulsory.
Without this license, your business can be considered illegal.
Who Needs an MSTC License?
You need an MSTC License for Scrap if you are:
-
A scrap trader
-
A scrap buyer or seller
-
A recycling plant owner
-
An E-waste recycler
-
A metal or plastic scrap dealer
-
A manufacturer selling scrap
Small or big business — everyone needs it.
Why MSTC License Is Important?
The MSTC license is important because:
-
It makes your business legal
-
You can participate in government scrap auctions
-
It builds trust with customers
-
It avoids penalties and fines
-
It supports clean and green recycling
Types of Scrap Covered Under MSTC
MSTC registration is used for many types of scrap, such as:
-
Iron and steel scrap
-
Aluminum and copper scrap
-
Plastic waste
-
E-waste (computers, mobiles, TVs)
-
Battery scrap
-
Industrial scrap
Step-by-Step Process to Get MSTC License for Scrap
Let us understand the full process in simple steps.
Step 1: Business Registration
First, your business must be registered. You can have:
-
Proprietorship
-
Partnership
-
LLP
-
Private Limited Company
You must have:
-
PAN card
-
Address proof
-
Business registration certificate
Step 2: Pollution Control Board Approval
Before MSTC registration, you need approval from the State Pollution Control Board.
This depends on your state.
What Is BSPCB Setup?
If your business is in Bihar, you need approval from BSPCB.
BSPCB Setup means getting permission from the Bihar State Pollution Control Board.
It includes:
-
Consent to Establish (CTE)
-
Consent to Operate (CTO)
This ensures your scrap or recycling business does not harm the environment.
What Is PPCB NOC?
If your business is in Punjab, you must get PPCB NOC.
PPCB NOC means No Objection Certificate from Punjab Pollution Control Board.
It is required for:
-
Scrap dealers
-
Recycling plants
-
Plastic and E-waste businesses
Without PPCB NOC, MSTC registration can be rejected.
Step 3: ROHS Certification Services
If you deal with electronic items or E-waste, you may also need ROHS Certification Services.
ROHS means Restriction of Hazardous Substances.
This certificate ensures that harmful chemicals like:
-
Lead
-
Mercury
-
Cadmium
are not used beyond limits.
ROHS certification is important for:
-
E-waste recycling
-
Electronics manufacturing
-
Export-import of electronic items
Step 4: Online MSTC Registration
Once you have:
-
Pollution board approval (BSPCB setup or PPCB NOC)
-
ROHS certificate (if applicable)
You can apply for MSTC License for Scrap online.
You need:
-
Company details
-
PAN & GST
-
Pollution board certificate
-
Bank details
-
Digital signature (DSC)
Step 5: Document Verification
MSTC checks your documents.
If everything is correct, your application is approved.
Step 6: MSTC Login ID Creation
After approval, you receive:
-
MSTC User ID
-
Password
Now you can legally:
-
Buy scrap
-
Sell scrap
-
Participate in government auctions
Common Mistakes to Avoid
Many applications get rejected due to small mistakes like:
-
Wrong pollution board document
-
Missing PPCB NOC or BSPCB setup
-
No ROHS certification
-
Incorrect business details
Professional help can save time and money.
Benefits of MSTC License for Scrap
-
Legal scrap trading
-
Access to government tenders
-
Better business growth
-
High trust in market
-
Support for recycling and environment
How ROHS, BSPCB, and PPCB Connect with MSTC
|
Approval |
Purpose |
|
MSTC License for Scrap |
Legal scrap trading |
|
BSPCB Setup |
Pollution approval in Bihar |
|
PPCB NOC |
Pollution approval in Punjab |
|
ROHS Certification Services |
Safe electronic recycling |
All these approvals work together to make your business legal and safe.
FAQs – MSTC License for Scrap
1. Is MSTC License mandatory for scrap business?
Yes, MSTC License for Scrap is mandatory for legal scrap trading in India.
2. How long does MSTC registration take?
Usually 7–15 working days, if documents are correct.
3. Is PPCB NOC compulsory?
Yes, if your business is in Punjab, PPCB NOC is compulsory.
4. What is BSPCB setup used for?
BSPCB setup is required for scrap and recycling businesses in Bihar.
5. Is ROHS Certification compulsory for all?
ROHS Certification Services are mainly required for E-waste and electronic items.
6. Can individuals apply for MSTC?
Yes, individuals with proper business registration can apply.
7. Can MSTC license be cancelled?
Yes, if pollution rules are not followed.
Final Words
Getting an MSTC License for Scrap is not difficult if you understand the process properly. Along with MSTC, approvals like BSPCB setup, PPCB NOC, and ROHS Certification Services are very important.
These approvals help you:
-
Run a legal business
-
Protect the environment
-
Grow your recycling or scrap trade smoothly
With the right guidance, the process becomes simple and stress-free.
Author Profile
Upendra Sharma
Environmental Compliance & Sustainability Professional
Upendra Sharma is an experienced professional in scrap licensing, recycling business compliance, and pollution control approvals. He has worked closely with businesses across India to obtain MSTC License for Scrap, ROHS Certification Services, BSPCB setup, and PPCB NOC. His goal is to help businesses grow legally while protecting the environmental clearance.
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