PARIVARTAN Scheme Approved: Rs 9,585 Crore to Replace Old Trucks, Buses in NCR

MoHUA approves guidelines for PARIVARTAN scheme, aims to accelerate replacement of old trucks and buses in NCR

New Delhi, July 16

The Scheme, with a total outlay of Rs. 9,585 crore - including budgetary support of Rs. 5,041 crore from the Central Government - was approved by the Union Cabinet on 3 June 2026. The detailed operational Guidelines for the Scheme have now been approved by the Union Minister for Housing and Urban Affairs.

With the Guidelines now in place, the Scheme is ready to be operationalised. The Ministry of Road Transport and Highways (MoRTH) would be the implementing Ministry under the scheme and will be funded through the National Capital Region Planning Board (NCRPB), reflecting the Government's integrated, region-wide approach to addressing vehicular air pollution across Delhi-NCR.

MoHU in a communication says that, "The PARIVARTAN Scheme carries forward the sustained vision of Prime Minister Narendra Modi of reducing vehicular pollution in Delhi-NCR through a transition towards cleaner mobility and creating a healthier living environment for citizens."

Building on earlier interventions to reduce the movement of polluting heavy vehicles through Delhi, the Scheme marks another major step towards cleaner air and a healthier, more sustainable National Capital Region.

This Scheme provides a comprehensive package of incentives, including Motor Vehicle Tax concessions, registration fee waivers, 5% interest subvention on vehicle loans, a minimum 8% OEM discount on eligible new vehicles, monthly fuel voucher support for eligible diesel and CNG replacement vehicles, and one-time financial assistance for electric replacement vehicles and Certificate of Deposit (CoD) trading.

In a significant step towards ground-level readiness, the States of Rajasthan, Haryana, Uttar Pradesh and NCT of Delhi issued notifications granting Motor Vehicle Tax concession for ten years and registration fee waiver on the new vehicle purchased under the Scheme.

On industry participation, 11 Original Equipment Manufacturers (OEMs) -- together accounting for more than 95% of commercial vehicle market share -- have signed Memoranda of Understanding (MoUs) with MoRTH to extend the OEM discount to eligible beneficiaries under the Scheme.

The Scheme will be implemented through an integrated digital platform that will seamlessly interface with VAHAN, V-Scrap, DigiELV, the Public Financial Management System (PFMS), participating lenders, and fuel voucher systems to ensure transparent, efficient, and end-to-end digital delivery of benefits.

Manohar Lal Khattar, Union Minister for Housing and Urban Affairs and Chairman, NCRPB, said in a statement, "The approval of the PARIVARTAN Guidelines is a landmark step for the National Capital Region. As Chairman of the NCRPB, I am confident that this Scheme will meaningfully reduce vehicular pollution from ageing trucks and buses and contribute to a marked improvement in the region's overall Air Quality Index, bringing real relief to the crores of residents of Delhi-NCR."

— ANI