The Ministry of Housing and Urban Affairs (MoHUA) has approved the operational guidelines for the Programme for Accelerated Renewal and Incentivization of Vehicle Assets for Reducing Transport Air Pollution and Network Emissions (Parivartan) scheme. As reported by Business Standard, this represents a significant milestone in the implementation of the ₹9,585 crore scheme that was approved by the Union Cabinet last month. The scheme will be implemented through the Ministry of Road Transport and Highways (MoRTH) under the National Capital Region Planning Board (NCRPB) funding structure. The comprehensive framework establishes the operational mechanisms for replacing older, polluting commercial vehicles with cleaner BS-VI-compliant or electric vehicles across the National Capital Region.
The scheme now offers comprehensive incentives including motor vehicle tax concessions, registration fee waivers, 5 per cent interest subvention on vehicle loans, minimum 8 per cent 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. According to Business Standard, 11 original equipment manufacturers (OEMs) — together accounting for more than 95 per cent of the commercial vehicle market share — have signed memoranda of understanding (MoUs) with MoRTH to extend OEM discounts to eligible beneficiaries. The governments of Rajasthan, Haryana, Uttar Pradesh and Delhi have already issued notifications granting motor vehicle tax concession for 10 years and registration fee waiver on new vehicles purchased under the scheme. This enhanced package significantly lowers both immediate purchase burden and long-term ownership costs, making the transition financially attractive for vehicle owners.
The scheme targets commercial trucks and buses operating in Delhi-NCR that comply with BS-IV or older emission standards. As reported by Business Standard, BS-III and older vehicles must be scrapped at authorized Registered Vehicle Scrapping Facilities, while BS-IV vehicles can either be scrapped or sold outside the NCR in non-National Clean Air Programme cities before purchasing replacements. The replacement vehicle must meet BS-VI or stricter emission norms, or be an electric vehicle where applicable. In Delhi specifically, new buses purchased under the scheme must be BS-VI CNG or electric, while new light goods vehicles must be electric. The scheme will benefit around 207,000 commercial vehicle owners, including nearly 191,000 trucks and 16,329 buses. The scheme will remain open for enrolment for two years, while certain central benefits will continue for up to five years after new vehicle registration.
A joint study conducted by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI) for Delhi-NCR revealed significant environmental benefits. As reported by Business Standard, the transport sector contributes 14 per cent of PM2.5 emissions in Delhi-NCR, is responsible for 40 per cent of carbon monoxide emissions, and accounts for 63 per cent of nitrogen oxide emissions. Despite trucks and buses comprising only about 3 per cent of the vehicle fleet, they generate 36 per cent of transport-related PM2.5 pollution. The study estimates that a heavy commercial vehicle built before BS-VI emission standards can produce as much pollution as 14 BS-VI-compliant vehicles. Latest studies show that on average, an older BS-III or BS-IV truck emits about 2.7 times more PM2.5 than a BS-VI truck in the surveyed fleet. The study estimates that trucks entering Delhi emit about 52.18 kg of PM2.5 every day, with BS-III trucks emitting 17.9 kg and BS-IV trucks emitting 14.47 kg, together accounting for nearly 62 per cent of total PM2.5 emissions from trucks entering Delhi even though they make up only 38 per cent of the fleet.
The scheme will be implemented through a digital platform that will 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. According to Business Standard, the scheme's success will depend on how smoothly administrative steps move, including identifying eligible owners, processing applications, scrapping old vehicles, and approving loans for replacements. Enforcement and compliance checks will be essential, with closer monitoring of commercial vehicles entering Delhi, especially older trucks. The government has focused on trucks and buses rather than private cars first because commercial vehicles are only about three per cent of the vehicle fleet in Delhi-NCR but account for 36 per cent of PM2.5 emissions from the transport sector. This represents a high-impact intervention where a small slice of vehicles is doing much larger share of the damage, making it more efficient to target older commercial vehicles than trying to remove the same number of lower-emitting private vehicles.
