Dear Shyam A,
To design a policy on the disposal of the items, one has to study the nature of the business, how the material is classified, and above all, you have to define:
a) Surplus items
b) Obsolete items
c) Scrap items and
d) Salvaged items
A proper identification and quantification of the above items are essential as many times corruption happens while disposing of the above items.
You need to form a committee to identify and further obtain the certificate of condemnation from the competent authority for the above items. Thereafter, a sale notice is issued.
As mentioned earlier, the policy can be designed after studying the production process or how the business is conducted. Feel free to approach me for assistance if any.
Thanks,
Dinesh Divekar