The Delhi Government has approved the implementation of the Union Ministry of Road Transport and Highways’ Parivartan scheme (Program for Accelerated Renewal and Incentivisation of Vehicle Assets for Reducing Transport Air Pollution and Network Emission) in the national capital. The initiative aims to phase out ageing, high-emission commercial vehicles and encourage their replacement with cleaner BS-VI or electric vehicles (EVs), supporting efforts to reduce transport-related air pollution.

Chief Minister Rekha Gupta said the decision, approved during a recent Cabinet meeting, marks an important step toward replacing older trucks and buses operating in Delhi-NCR with vehicles that meet the latest emission standards or run on electric power. According to her, the programme will strengthen the city’s clean mobility ecosystem while promoting the modernisation of the commercial vehicle fleet.

Under the scheme, owners who scrap BS-IV or older Light Goods Vehicles (LGVs) and purchase a new electric LGV will be eligible for a 100% exemption from motor vehicle tax for 10 years, a complete waiver of registration fees, a 5% interest subsidy, an 8% discount from the vehicle manufacturer (OEM), and a one-time incentive equivalent to the value of a fuel voucher.

Those opting for a used electric LGV instead of a new one will receive a 50% exemption on motor vehicle tax for 10 years, a 5% interest subsidy, and the same one-time fuel voucher benefit.

The scheme also extends to Medium Goods Vehicles (MGVs) and Heavy Goods Vehicles (HGVs) that are BS-IV compliant or older. Vehicle owners replacing these with new BS-VI or electric goods vehicles will receive a 100% motor vehicle tax exemption for 10 years, a full registration fee waiver, a 5% interest subsidy, an 8% OEM discount, and a one-time fuel voucher incentive. Those purchasing used BS-VI or electric goods vehicles will be entitled to a 50% tax exemption for 10 years, along with the 5% interest subsidy and the fuel voucher benefit.

Older BS-IV and earlier buses have also been brought under the scheme. These buses can only be replaced with BS-VI CNG or electric buses, both of which will qualify for the same incentives available to goods vehicles.

In addition, eligible vehicles earmarked for replacement will receive relief from pending road tax and fitness-related penalties that have accumulated for more than a year. Importantly, BS-IV vehicles covered under the scheme will not necessarily have to be scrapped. Instead, they may be sold in non-NCAP cities outside the National Capital Region (NCR), provided they are not located in areas covered under the National Clean Air Programme.

According to the Chief Minister, nearly 2.07 lakh truck and bus owners across Delhi-NCR are expected to benefit from the initiative. The replacement of older commercial vehicles with cleaner alternatives is expected to significantly reduce vehicular emissions while improving the overall quality of the transport fleet.

As part of the scheme, all Light Goods Vehicles purchased in Delhi must be electric, while only BS-VI CNG or electric buses will be permitted for bus operations under the programme. The Chief Minister added that the initiative aligns closely with the objectives of the Delhi EV Policy 2026, accelerating the transition to cleaner commercial transport and contributing to long-term improvements in air quality.