Parivartan Scheme: Guidelines Approved for Scrapping Old Trucks, Buses in NCR
UPSC / SSC current affairs note · IR
Why in news
The Ministry of Housing and Urban Affairs has approved the operational guidelines for the 'Parivartan' scheme, which aims to replace old, polluting trucks and buses in the National Capital Region (NCR) with cleaner BS-VI or electric vehicles. This move is significant as it operationalizes a major government initiative to combat vehicular pollution in Delhi-NCR, with a total outlay of ₹9,585 crore.
Background
The Parivartan scheme was approved by the Union Cabinet on June 3, 2026, with a total expenditure of ₹9,585 crore, including ₹5,041 crore as budgetary support from the central government. It builds on earlier efforts to reduce the movement of polluting heavy vehicles through Delhi. The scheme targets the rapid replacement of old trucks and buses in the NCR to improve air quality.
Key facts
The Parivartan scheme (Program for Accelerated Vehicle Asset Renewal and Reduction of Transport-related Air Pollution and Network Emissions) aims to replace old, highly polluting trucks and buses in NCR with BS-VI or electric vehicles.
Total outlay: ₹9,585 crore, with ₹5,041 crore as central budgetary support.
Implemented by the Ministry of Road Transport and Highways (MoRTH) through the National Capital Region Planning Board (NCRPB).
Incentives include: motor vehicle tax concession, registration fee exemption, 5% interest subsidy on vehicle loans, minimum 8% OEM discount, monthly fuel voucher assistance for diesel/CNG replacements, and one-time financial aid plus Certificate of Deposit (CoD) trading for EV replacements.
Governments of Rajasthan, Haryana, Uttar Pradesh, and NCT Delhi have issued notifications for 10-year motor vehicle tax concession and full registration fee exemption on new vehicles under the scheme.
11 OEMs with over 95% combined market share in commercial vehicles have signed MoUs with MoRTH to provide OEM discounts.
Implementation via an integrated digital platform linking vehicle, V-SCRAP, DigiELV, PFMS, partner financial institutions, and fuel voucher systems.
The scheme is fully ready for implementation after approval of guidelines by the Union Housing and Urban Affairs Minister.
Prelims pointers
- Parivartan scheme
- NCR (National Capital Region)
- BS-VI (Bharat Stage VI) emission standards
- Electric vehicles (EVs)
- National Capital Region Planning Board (NCRPB)
- Ministry of Housing and Urban Affairs (MoHUA)
- Ministry of Road Transport and Highways (MoRTH)
- Certificate of Deposit (CoD) trading
- OEM (Original Equipment Manufacturer)
- V-SCRAP and DigiELV portals
Mains angles
- Discuss the effectiveness of vehicle scrappage policies in reducing urban air pollution, with reference to the Parivartan scheme.
- Critically examine the role of fiscal incentives and digital platforms in promoting the adoption of cleaner vehicles in the NCR.
- Analyze the inter-state coordination challenges in implementing pollution control measures in the NCR and how the Parivartan scheme addresses them.