The Ministry of Housing and Urban Affairs (MoHUA) has approved the operational guidelines for the PARIVARTAN Scheme (Programme for Accelerated Renewal and Incentivization of Vehicle Assets for Reducing Transport Air Pollution and Network Emissions) aimed at replacing older, highly polluting trucks and buses operating in the National Capital Region (NCR) with cleaner Bharat Stage (BS)-VI compliant or electric vehicles. The scheme carries forward Prime Minister Narendra Modi's vision of reducing vehicular pollution in Delhi-NCR through transition towards cleaner mobility and creating a healthier living environment.
With a total outlay of ₹9,585 crore, including budgetary support of ₹5,041 crore from the Central Government, the scheme was approved by the Union Cabinet on June 3, 2026. The Ministry of Road Transport and Highways (MoRTH) will serve as the implementing ministry, funded through the National Capital Region Planning Board (NCRPB), reflecting an integrated, region-wide approach to addressing vehicular air pollution across Delhi-NCR.
The scheme provides a comprehensive package of incentives including Motor Vehicle Tax concessions, registration fee waivers, 5% interest subvention on vehicle loans, a minimum 8% 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.
In preparation for implementation, the states of Rajasthan, Haryana, Uttar Pradesh and NCT of Delhi have issued notifications granting Motor Vehicle Tax concession for ten years and registration fee waiver on new vehicles purchased under the scheme. Eleven Original Equipment Manufacturers accounting for more than 95% of commercial vehicle market share have signed Memoranda of Understanding with MoRTH to extend OEM discounts to eligible beneficiaries.
The scheme will be implemented through an integrated digital platform that interfaces 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. Union Minister Manohar Lal stated that this scheme will meaningfully reduce vehicular pollution from ageing trucks and buses and contribute to marked improvement in the region's overall Air Quality Index.