The Delhi Cabinet has approved the implementation of the Central government's PARIVARTAN scheme, greenlighting a plan to phase out more than 2 lakh old, high-emission trucks and buses across Delhi-NCR and replace them with BS-VI, higher-emission-standard, or electric vehicles. Chief Minister Rekha Gupta announced the Cabinet decision on Monday, 20 July, describing it as a decisive step toward cleaner commercial transport in the capital.

What PARIVARTAN Covers

PARIVARTAN — the Programme for Accelerated Renewal and Incentivisation of Vehicle Assets for Reducing Transport Air Pollution and Network Emissions — is a Union Ministry of Road Transport and Highways initiative. Its Delhi rollout targets approximately 2.07 lakh truck and bus owners registered in the Delhi-NCR region. The scheme applies simultaneously across all NCR states, with each state government providing concessions applicable to vehicles registered within its jurisdiction.

Notably, the Delhi government has added a stricter local condition: all Light Goods Vehicles (LGVs) purchased in Delhi under the scheme must be electric. For buses, only BS-VI CNG or electric variants will be permitted — a standard that goes beyond the Central scheme's baseline requirements.

Incentives for Vehicle Owners

Owners of BS-IV or older LGVs who scrap their vehicles and buy a new electric LGV will receive a 100 per cent exemption on motor vehicle tax and registration fees for 10 years, a 5 per cent interest subvention, an 8 per cent OEM discount, and fuel vouchers or a one-time equivalent benefit. Those opting for a used electric LGV instead will receive a 50 per cent tax exemption for 10 years, the 5 per cent interest subvention, and the fuel voucher benefit.

Owners of BS-IV or older Medium Goods Vehicles (MGVs) and Heavy Goods Vehicles (HGVs) who scrap and purchase new BS-VI or electric goods vehicles are eligible for a 100 per cent motor vehicle tax exemption for 10 years, a 100 per cent registration fee waiver, a 5 per cent interest subvention, an 8 per cent OEM discount, and fuel vouchers. Buyers of used BS-VI or electric goods vehicles receive a 50 per cent tax exemption, the interest subvention, and the fuel voucher benefit.

Old BS-IV and older buses are also covered, but replacement is restricted to BS-VI CNG or electric buses, with the same benefit structure as goods vehicles. Additionally, eligible scrapped vehicles will receive relief on outstanding road tax and fitness penalty dues pending for more than one year.

The Non-NCAP Provision

The scheme includes a notable flexibility clause: BS-IV vehicles covered under PARIVARTAN do not necessarily have to be scrapped. They may instead be sold in non-NCAP cities — cities outside the National Clean Air Programme (NCAP) and outside the NCR — allowing owners an alternative exit route that recovers some residual vehicle value.

Why This Matters for Delhi's Air Quality

Delhi consistently ranks among India's most polluted cities, with transport emissions accounting for a significant share of its PM2.5 and NOx load. Old commercial vehicles — particularly pre-BS-IV trucks and buses — are disproportionate contributors to roadside pollution. This is the first large-scale, incentive-backed fleet modernisation push in the capital under the current administration. Chief Minister Gupta said the scheme will strengthen Delhi's clean transport infrastructure while simultaneously modernising the commercial vehicle fleet. The scheme's success will hinge on uptake rates among small fleet operators, many of whom cite upfront financing costs as the primary barrier to vehicle replacement.