Delhi Government Approves Parivartan Scheme to Replace Old Commercial Vehicles with BS-VI and Electric Vehicles

The Delhi Government has given approval for the rollout of the Parivartan Scheme, which is a flagship initiative of the Ministry of Road Transport and Highways (MoRTH). This scheme has been formulated to replace the old BS-IV commercial vehicles as well as older vehicles with BS-VI vehicles or electric vehicles thereby reducing the emissions from vehicles in the National Capital Region (NCR) of India. In a meeting by the Delhi Cabinet, presided by Chief Minister Rekha Gupta, the scheme has been approved and the measures like tax exemption, waiver on registration fee, interest subsidy and discount by manufacturers have been proposed.

What Is the Parivartan Scheme?

Parivartan refers to the Programme for Accelerated Renewal and Incentivization of Vehicle Assets for the Purpose of making transportation air pollution and other emissions.

The scheme was developed by the Ministry of Road Transport and Highways with the goal of to,

• Replace aging commercial vehicles with cleaner options.
• Decrease air pollution caused by transportation.
• Encourage the use of BS-VI and electric commercial vehicles.
• Modernize commercial vehicles in India.
• Foster sustainable transportation and decrease emissions.

Who Is Eligible?

Eligible beneficiaries include the owners of,

• Light Goods Vehicles (LGVs) that are BS-IV or older
• Medium Goods Vehicles (MGVs) that are BS-IV or older
• Heavy Goods Vehicles (HGVs) that are BS-IV or older
• Commercial buses that are BS-IV or older

Advantages for Buyers of New Electric Light Goods Vehicles

Individuals who dispose of their qualifying BS-IV or older Light Goods Vehicles (LGVs) and buy new electric LGVs will benefit from the following,

• Complete exemption from motor vehicle tax for a decade
• No registration fees to pay
• Interest grant of 5%
• Discount of 8% from the Original Equipment Manufacturer (OEM)
• One-off benefit equal to the fuel voucher amount

Incentives for Buyers of Used Electric LGVs

Customers who go for a used instead of a new electric LGV will benefit from the following incentives,

• 50% exemption from motor vehicle tax for ten years
• Grant of 5% interest
• One-time benefit in the form of a fuel voucher

Benefits for Freight Vehicles

Individuals who swap out Medium Freight Vehicles (MFVs) and Large Freight Vehicles (LFVs) for modern BS-VI-compliant or electric variants can expect,

• Tax exemption from motor vehicle duty for ten years
• Free registration fee
• Interest subsidy of 5%
• Discount of 8% for original equipment manufacturer
• One-off fuel certificate

Persons who buy pre-owned BS-VI or electric freight cars can count on,

• Tax exemption from motor vehicle duty for fifty percent for ten years
• Interest subsidy of 5%
• Fuel voucher provision

Buses

• This initiative includes BS-IVs and older buses.

They must be replaced with,

• CNG BS-VI bus or
• Electric buses

Terms of assistance provided for owners of commercial vehicles are also applicable to bus owners.

More Advantages of the Initiative

The government of Delhi has enacted a lot of encouraging measures,

• Exemption from the accumulated road tax
• Exemption from the pending fines due to the fitness tests of the scrapped cars
• Existing BS-IV vehicles covered by the replacement program do not need to be scrapped if they are sold to areas outside the Delhi NCAP.

Thus, the above-mentioned rules will provide flexibility and promote the usage of automobiles that are more environmentally friendly.

Anticipated Results

As per the statements made by the Delhi Government,

• It is expected that approximately 2.7 lakh truck and bus operators from Delhi-NCR will benefit from this program.
• All Light Goods Vehicles bought in Delhi under this program will be electric.
• The commercial buses that will substitute the old vehicles have to be BS-VI CNG or electric.

This program is in line with the Delhi Electric Vehicle Policy 2026 in facilitating the swift transformation of the transportation system into a greener one.