MoHUA issues PARIVARTAN guidelines, rolls out incentives for scrapping old commercial vehicles
New Delhi, July 22
The Ministry of Housing and Urban Affairs has issued the official scheme guidelines for PARIVARTAN. Released by the Climate Change Division of the Ministry, the guidelines come into immediate effect.
The aim is to accelerate vehicle renewal, curbing transport-related air pollution and reducing emissions through coordinated action by ministries, state governments and implementing agencies.
The proposed vehicle replacement policy offers substantial incentives for owners scrapping older vehicles at a Registered Vehicle Scrapping Facility (RVSF). Owners of pre-BS, BS-I, BS-II, BS-III and BS-IV vehicles will be eligible for a 100% motor vehicle tax concession, a full registration fee waiver, a 5% interest subvention and an 8% OEM discount on the purchase of a new vehicle.
According to the guidelines, buyers replacing their scrapped vehicle with a used vehicle will receive a 50% motor vehicle tax concession and a 5% interest subvention, along with either fuel vouchers for diesel/CNG vehicles or a one-time benefit equivalent to the discounted value of fuel vouchers for electric vehicles.
Additionally, a one-time Trade Certificate of Deposit (CoD) benefit equivalent to the discounted value of fuel vouchers will be provided. For BS-IV vehicles sold outside the National Capital Region (NCR) to non-NCAP cities, buyers will also be eligible for the same incentives on new vehicles and a reduced package for used vehicles, although no Trade CoD benefit will be available.
Owners purchasing diesel or CNG replacement vehicles will be eligible for monthly fuel vouchers for five years, capped at 1200 for LGV/LPV, 2500 for MGV/MPV and 4,800 for HGV/HPV. Those opting for electric replacement vehicles or choosing to trade their Certificate of Deposit (CoD) instead of buying a new vehicle will receive a one-time incentive of 64,000 for LGV/LPV, 1.28 lakh for MGV/MPV, and 2.56 lakh for HGV/HPV.
In addition, pending liabilities of more than one year on eligible vehicles scrapped at Registered Vehicle Scrapping Facilities (RVSFs) will also be waived by the concerned State Governments.
The Ministry of Road Transport and Highways will serve as the nodal implementing ministry, overseeing policy, digital platform development and stakeholder coordination, while the Ministry of Housing and Urban Affairs (MoHUA) and the National Capital Region Planning Board (NCRPB) will provide funding and disburse benefits through the Public Financial Management System (PFMS).
State Governments in Delhi, Haryana, Uttar Pradesh and Rajasthan will notify tax concessions, registration fee waivers and liability waivers, while district administrations will monitor on-ground implementation, resolve grievances and facilitate beneficiary onboarding.
The scheme will be supervised by an Empowered Committee chaired by the Cabinet Secretary, with senior officials from NITI Aayog, MoHUA, MoRTH, MoPNG, the Department of Financial Services and NCR State Governments, ensuring regular monitoring, inter-ministerial coordination and effective implementation across the National Capital Region.
— ANI
Reader Comments
This is all well and good for big fleet owners but what about us small operators with one or two old tempos? The fuel voucher system seems complicated - 1200 rupees a month for five years, but will it keep up with inflation? Rs. 64,000 for an electric LGV is nice but where are we supposed to charge them in smaller towns? The intention is good but ground reality will be tough for the common man.
An interesting policy from an environmental perspective. I work in climate research and the fact that they're targeting pre-BS to BS-IV vehicles is smart - those are the worst polluters. The multi-ministerial coordination is also promising. However, India has a history of scrappage policies that fizzle out. The success depends on whether the 5-year fuel voucher commitment is actually honored by state governments. Fingers crossed! 🤞
Finally, a policy that addresses the BS-IV vehicles sold outside NCR separately! I've seen so many old trucks being dumped in smaller cities after Delhi bans them. But 50% tax concession for used vehicles is too low - many families can't afford a new vehicle even with the discounts. Also, why only four states? What about vehicles from other states that enter NCR daily? Need a national rollout.
As someone who moved to Delhi from abroad recently, I've seen the pollution here firsthand. This is a solid step but feels like a band-aid solution. The Rs. 2.56 lakh incentive for heavy commercial EVs is decent but the actual cost of an electric truck is still 3-4 times higher than a diesel one. The 5% interest subvention won't bridge that gap. Also, will the OEM discount be available for models actually in demand or just slow-moving stock? Need more transparency.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.