The Ministry of Housing and Urban Affairs (MoHUA) has announced the launch of official guidelines for the PARIVARTAN scheme, aimed at promoting the replacement of old commercial vehicles to curb air pollution. The programme, which stands for Programme for Accelerated Renewal and Incentivisation of Vehicle Assets for Reducing Transport Air Pollution and Network Emissions, has been released by the Climate Change Division of the Ministry and is effective immediately.

Incentives for Vehicle Owners

The PARIVARTAN scheme provides various financial incentives for owners of pre-BS, BS-I, BS-II, BS-III, and BS-IV vehicles who scrap their old vehicles at a Registered Vehicle Scrapping Facility (RVSF). These benefits include a complete waiver of the motor vehicle tax, full registration fee exemption, a 5 per cent interest subvention, and an 8 per cent discount on new vehicles from Original Equipment Manufacturers (OEMs).

For those who choose to replace scrapped vehicles with used ones, the scheme offers a 50 per cent motor vehicle tax concession and a 5 per cent interest subvention. Additionally, these owners can receive either fuel vouchers for diesel or CNG vehicles or a one-time benefit equivalent to the fuel vouchers for electric vehicles. A one-time Trade Certificate of Deposit (CoD) benefit is also available at a value matching the discounted fuel vouchers.

Furthermore, owners of BS-IV vehicles sold outside the National Capital Region (NCR) who buy new or used vehicles will be entitled to similar incentives, although no Trade CoD benefit will be applicable for used vehicle purchases.

Fuel Vouchers and Additional Benefits

The scheme extends its benefits to owners purchasing diesel or CNG vehicles, who will receive monthly fuel vouchers for a duration of five years. These vouchers have specific caps: Rs 1,200 for Light Goods Vehicles (LGV) and Light Passenger Vehicles (LPV), Rs 2,500 for Medium Goods Vehicles (MGV) and Medium Passenger Vehicles (MPV), and Rs 4,800 for Heavy Goods Vehicles (HGV) and Heavy Passenger Vehicles (HPV).

For those opting for electric vehicles or wishing to trade their CoD instead of acquiring a new vehicle, a one-time incentive is available. The incentives amount to Rs 64,000 for LGV/LPV, Rs 1.28 lakh for MGV/MPV, and Rs 2.56 lakh for HGV/HPV. This structured incentive scheme aims to facilitate the transition towards more environmentally friendly transportation options.

Moreover, any pending liabilities exceeding one year on eligible vehicles scrapped at RVSFs will also be waived by relevant State Governments, further easing the financial burden on vehicle owners.

Implementation and Coordination

The Ministry of Road Transport and Highways has been designated as the nodal ministry responsible for implementing the PARIVARTAN scheme. It will oversee the development of the necessary digital platforms and coordinate with relevant stakeholders to ensure the programme runs smoothly.

Agencies such as MoHUA and the National Capital Region Planning Board (NCRPB) will provide funding and execute benefits through the Public Financial Management System (PFMS). State Governments, particularly in regions like Delhi, Haryana, Uttar Pradesh, and Rajasthan, will be tasked with notifying assorted tax concessions and waivers, while district administrations will manage the practical aspects of implementation, including grievance resolution and beneficiary onboarding.

An Empowered Committee, headed by the Cabinet Secretary and comprising senior officials from various ministries, will supervise the scheme. This committee is responsible for monitoring its progress, fostering inter-ministerial collaboration, and ensuring effective implementation throughout the National Capital Region.

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