Delhi Approves PARIVARTAN Scheme for Vehicle Renewal

The Delhi Government approved the Programme for Accelerated Renewal and Incentivisation of Vehicle Assets for Reducing Transport Air Pollution and Network Emissions (PARIVARTAN) on 20 July 2026. The scheme is a Centre-backed vehicle scrappage and replacement programme for commercial vehicles in Delhi-NCR.

Scheme framework

PARIVARTAN was approved by the Union Cabinet on 3 June 2026 with a total outlay of Rs. 9,585 crore. The Central Government support in the scheme is Rs. 5,041 crore, and the Ministry of Housing and Urban Affairs approved the operational guidelines on 16 July 2026.

Vehicles covered under the scheme

The scheme targets BS-IV or older Light Goods Vehicles, Medium Goods Vehicles, Heavy Goods Vehicles, and buses operating in Delhi-NCR. It applies to commercial vehicles that are eligible for scrapping and replacement under the notified framework.

• BS-IV or older Light Goods Vehicles are covered for replacement with cleaner vehicles.
• Medium Goods Vehicles and Heavy Goods Vehicles are included in the incentive structure.
• Buses operating in Delhi-NCR are also covered under the scheme.
• The programme is linked to vehicle scrapping and fleet renewal in the National Capital Region.

Incentives and tax relief

Owners scrapping BS-IV or older Light Goods Vehicles and buying new electric Light Goods Vehicles receive a 100% exemption on motor vehicle tax for 10 years. They also receive a full waiver of registration fees, a 5% interest subsidy, and an 8% OEM discount. For eligible new BS-VI or electric Medium Goods Vehicles, Heavy Goods Vehicles, and buses, the scheme provides the same 100% motor vehicle tax exemption for 10 years, full waiver of registration fees, 5% interest subsidy, and 8% OEM discount. Eligible scrapped vehicles also receive relief from outstanding road tax and fitness penalty liabilities.

Implementation and administrative structure

The Union Ministry of Road Transport and Highways will implement the programme, and the National Capital Region Planning Board will fund it. The scheme is expected to benefit about 2.07 lakh truck and bus owners in the Delhi-NCR region.

Important Facts for Exams

• BS-IV and BS-VI are Bharat Stage emission standards used in India for vehicle pollution control.
• The National Capital Region includes Delhi and adjoining districts in Haryana, Uttar Pradesh, and Rajasthan.
• The Ministry of Housing and Urban Affairs handles urban transport and city infrastructure-related policy matters.
• The National Capital Region Planning Board is a statutory body linked to regional planning in the NCR.

Policy linkages

The Delhi Government linked PARIVARTAN with the Delhi EV Policy 2026. The scheme covers commercial vehicle renewal in the transport sector and uses fiscal incentives for scrapping older vehicles.