Delhi Approves ₹9,585 Crore Central Scheme to Replace Polluting Commercial Vehicles
The Delhi Cabinet has cleared the implementation of the PARIVARTAN scheme, a Central government initiative aimed at reducing air pollution by replacing older, highly polluting commercial vehicles with electric and BS-VI compliant models, Chief Minister Rekha Gupta announced on Monday.
PARIVARTAN — Programme for Accelerated Renewal and Incentivization of Vehicle Assets for Reducing Transport Air Pollution and Network Emissions — was approved by the Union Cabinet on June 3 with a total outlay of ₹9,585 crore, including ₹5,041 crore from the Centre. The Ministry of Housing and Urban Affairs approved its guidelines on July 16.
The scheme is expected to benefit around 2.07 lakh truck and bus owners in the Delhi-National Capital Region (NCR). “It will replace a large number of old, highly polluting commercial vehicles with cleaner and more modern ones, leading to a reduction in air pollution,” Ms. Gupta said.
She affirmed the Delhi government's commitment to clean transport, stating that the programme will help achieve the objectives of the Delhi EV Policy-2026 and accelerate modernisation of the commercial vehicle fleet in the national capital.
The initiative will be operated through a dedicated portal developed by the Ministry of Road Transport and Highways to ensure transparency and ease of use, the Chief Minister added.
Under the scheme, owners of BS-IV or older light goods vehicles (LGVs) who scrap their vehicles and purchase a new electric LGV will receive a 100% exemption on motor vehicle tax and registration fees for 10 years from the Delhi government. They will also get a 5% interest subsidy, an 8% discount from the vehicle manufacturer, and fuel vouchers or a one-time cash equivalent.
If a used electric LGV is purchased instead, the beneficiary gets a 50% tax exemption for 10 years, a 5% interest subvention, and the fuel voucher benefit. Similar incentives are available for owners of BS-IV or older medium and heavy goods vehicles who scrap them and buy new BS-VI or electric models.
