PARIVARTAN scheme set to replace ageing vehicles in Delhi-NCR

Union Minister for Housing and Urban Affairs and NCRPB Chairman Manohar Lal described the approval of the guidelines as a significant milestone for the region.

The Centre has cleared the operational guidelines for the PARIVARTAN scheme, paving the way for the replacement of old, high-polluting trucks and buses across the National Capital Region (NCR) with cleaner Bharat Stage-VI and electric vehicles. The initiative is expected to play a major role in improving air quality while encouraging commercial transport operators to shift to modern, low-emission fleets.

Approved by the Ministry of Housing and Urban Affairs (MoHUA), the scheme carries a total financial outlay of ₹9,585 crore, including ₹5,041 crore in Central Government support, following the Union Cabinet's approval in June this year.

Incentives designed to encourage cleaner transport

The Ministry of Road Transport and Highways (MoRTH) will implement the scheme, with funding routed through the National Capital Region Planning Board (NCRPB). The programme forms part of the government's wider strategy to tackle vehicle-related air pollution across Delhi and neighbouring states through coordinated regional action.

Transport operators replacing older commercial vehicles will receive a broad package of financial incentives. These include motor vehicle tax concessions, registration fee waivers, a 5% interest subsidy on vehicle loans, at least an 8% discount from participating vehicle manufacturers, monthly fuel voucher support for eligible diesel and CNG replacements, and one-time financial assistance for electric vehicles as well as Certificate of Deposit (CoD) trading.

The combination of these benefits is intended to reduce the financial burden of upgrading fleets while speeding up the retirement of ageing commercial vehicles that contribute heavily to air pollution.

States and vehicle manufacturers join the programme

The scheme has already gained support from several NCR states. Rajasthan, Haryana, Uttar Pradesh and the National Capital Territory of Delhi have issued notifications providing ten-year motor vehicle tax concessions and waiving registration fees for eligible replacement vehicles purchased under the programme.

Industry participation has also been strong. Eleven original equipment manufacturers (OEMs), representing more than 95% of India's commercial vehicle market, have signed agreements with the Ministry of Road Transport and Highways to provide the mandatory vehicle discounts to eligible buyers. The broad participation from both state governments and manufacturers is expected to make the transition smoother for commercial transport operators across the region.

Digital platform to simplify the process

The PARIVARTAN scheme will operate through a fully integrated digital platform linked with VAHAN, V-Scrap, DigiELV, the Public Financial Management System (PFMS), participating financial institutions and fuel voucher systems. This digital framework is expected to streamline applications, vehicle scrapping, financial assistance and benefit distribution while improving transparency and reducing administrative delays.

Union Minister for Housing and Urban Affairs and NCRPB Chairman Manohar Lal described the approval of the guidelines as a significant milestone for the region. He said replacing ageing trucks and buses with cleaner vehicles would help reduce vehicular pollution and improve the Air Quality Index across Delhi-NCR, bringing cleaner air and better living conditions to millions of residents.

The rollout of the scheme marks another step in India's push towards cleaner mobility, combining financial incentives, digital governance and industry participation to accelerate the adoption of low-emission commercial transport.