PARIVARTAN Scheme: Vehicle Scrappage Incentives

The Delhi Government approved the PARIVARTAN Scheme on 20 July 2026 to accelerate the replacement of old and polluting commercial vehicles in Delhi-NCR. PARIVARTAN stands for Programme for Accelerated Renewal and Incentivisation of Vehicle Assets for Reducing Transport Air Pollution and Network Emissions.

The Centre-backed vehicle scrappage and replacement programme aims to reduce vehicular air pollution through fleet modernisation. It uses tax benefits, interest subsidies, and manufacturer discounts to encourage owners to replace older vehicles with cleaner alternatives.

What is the PARIVARTAN Scheme?

The Union Cabinet approved PARIVARTAN on 3 June 2026 with a total outlay of ₹9,585 crore. The Central Government’s support amounts to ₹5,041 crore.

The scheme primarily covers BS-IV or older commercial vehicles eligible for scrapping and replacement.

Vehicles Covered

• Light Goods Vehicles (LGVs)
• Medium Goods Vehicles (MGVs)
• Heavy Goods Vehicles (HGVs)
• Buses operating in Delhi-NCR

The programme is also linked with the Delhi EV Policy 2026, encouraging the transition towards electric and cleaner commercial vehicles.

Incentives Under PARIVARTAN Scheme

Eligible vehicle owners can receive several financial benefits after scrapping older vehicles.

Major Incentives

• 100% motor vehicle tax exemption for 10 years.
• Full waiver of vehicle registration fees.
• 5% interest subsidy on eligible replacement vehicles.
• 8% discount from Original Equipment Manufacturers (OEMs).
• Relief from eligible outstanding road tax and fitness penalties on scrapped vehicles.

For old Light Goods Vehicles, incentives encourage replacement with electric LGVs. Eligible MGVs, HGVs and buses can be replaced with BS-VI or electric vehicles.

Implementation and Significance

The Ministry of Road Transport and Highways will implement the programme, while the National Capital Region Planning Board (NCRPB) will provide funding support.

PARIVARTAN is expected to benefit around 2.07 lakh truck and bus owners in Delhi-NCR. By accelerating vehicle scrappage, the scheme seeks to reduce transport emissions and modernise the commercial vehicle fleet.

Important Facts for Exams

• PARIVARTAN focuses on scrapping and replacing old commercial vehicles in Delhi-NCR.
• Total scheme outlay: ₹9,585 crore.
• Central Government support: ₹5,041 crore.
• Expected beneficiaries: Around 2.07 lakh vehicle owners.
• BS-IV and BS-VI are Bharat Stage vehicle emission standards.
• BS-VI norms impose stricter emission limits than BS-IV.
• NCR includes Delhi and designated areas of Haryana, Uttar Pradesh and Rajasthan.
• NCR Planning Board is a statutory body established under the NCR Planning Board Act, 1985.
• PARIVARTAN complements the Delhi EV Policy 2026 and India’s broader vehicle scrappage framework.