Delhi Government Approves PARIVARTAN Scheme, Substantial Incentives for Replacing Old Commercial Vehicles

BS-VI and Electric Vehicles to Replace Ageing, High-Polluting Trucks, Buses and Goods Carriers Across Delhi-NCR

Eligible vehicle owners to get 100% exemption on motor vehicle tax and registration fees for 10 years after scrapping old vehicles and purchasing eligible new vehicles

Scheme offers 5% interest subvention, 8% OEM discount and fuel vouchers for vehicle owners

PARIVARTAN will be a milestone in promoting clean transport and reducing pollution in Delhi: Chief Minister Rekha Gupta

New Delhi, July 2026 : The Delhi government has approved the proposal to implement and support the Government of India’s Ministry of Road Transport and Highways’ PARIVARTAN (Programme for Accelerated Renewal and Incentivisation of Vehicle Assets for Reducing Transport Air Pollution and Network Emissions) scheme in Delhi. According to Chief Minister Mrs. Rekha Gupta, this scheme aims to phase out old, polluting trucks and buses and replace them with BS-VI, higher-emission-standard or electric vehicles, thereby reducing transport-related air pollution and emissions.

This approval was granted during a recently held Delhi Government cabinet meeting. Chief Minister Rekha Gupta said the scheme marks an important step towards replacing old, highly polluting trucks and buses in Delhi-NCR with BS-VI, higher-emission-standard or electric vehicles. She said it will strengthen the capital’s clean transport system while helping modernise the commercial vehicle fleet and reduce air pollution.

Attractive incentives for BS-IV replacement with electric vehicles

The Chief Minister said that 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 be eligible for a 5% interest subvention, an 8% discount from the vehicle manufacturer (OEM), and fuel vouchers or a one-time benefit equivalent to the discounted value of the fuel vouchers. If, instead of purchasing a new electric LGV, the owner buys a used electric LGV, the beneficiary will receive a 50% exemption on motor vehicle tax for 10 years, a 5% interest subvention, and a one-time benefit equivalent to the discounted value of the fuel vouchers.

Incentives for replacing BS-IV and older MGVs and HGVs

The scheme also covers Medium Goods Vehicles (MGVs) and Heavy Goods Vehicles (HGVs) that are BS-IV or older. Owners who scrap such vehicles and purchase new BS-VI, higher-emission-standard or electric goods vehicles will be eligible for a 100% exemption on motor vehicle tax for 10 years, a 100% waiver of registration fees, a 5% interest subvention, an 8% OEM discount, and fuel vouchers or a one-time benefit equivalent to the discounted value of the fuel vouchers. If a used BS-VI or electric goods vehicle is purchased instead of a new one, the beneficiary will receive a 50% exemption on motor vehicle tax for 10 years, a 5% interest subvention, and a one-time benefit equivalent to the discounted value of the fuel vouchers.

Old buses also covered, relief in pending fitness penalties

Chief Minister Rekha Gupta said the scheme also includes old BS-IV and older buses. These buses can be replaced only with BS-VI CNG or electric buses and will be eligible for the same benefits as goods vehicles. She said eligible vehicles scrapped under the scheme will also receive relief from outstanding road tax and fitness penalty dues pending for more than one year. In addition, BS-IV vehicles covered under the scheme will not necessarily have to be scrapped. They may also be sold in non-NCAP cities outside the NCR. Non-NCAP cities are those that are not included under the National Clean Air Programme (NCAP).

Around 2 lakh truck and bus owners expected to benefit

The Chief Minister said the scheme is expected to benefit around 2.07 lakh truck and bus owners in Delhi-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. She said the Delhi Government is fully committed to promoting clean transport. Keeping this objective in mind, the scheme provides that all LGVs purchased in Delhi under the scheme must be electric. For buses, only BS-VI CNG or electric (EV) vehicles will be permitted.

Chief Minister Rekha Gupta said the scheme will further strengthen the objectives of the Delhi EV Policy-2026. It will accelerate the modernisation of the commercial vehicle fleet and significantly reduce vehicular pollution. The entire scheme will be operated through a dedicated digital portal developed by the Ministry of Road Transport and Highways, making the process more transparent, simple and user-friendly.