The Ministry of Housing and Urban Affairs has released guidelines for the PARIVARTAN scheme, aimed at reducing air pollution by accelerating vehicle renewal. The policy offers significant incentives for scrapping older vehicles in the National Capital Region.

The Ministry of Housing and Urban Affairs has issued the official scheme guidelines for PARIVARTAN (Programme for Accelerated Renewal and Incentivization of Vehicle Assets for Reducing Transport Air Pollution and Network Emissions). Released by the Climate Change Division of the Ministry, the guidelines come into immediate effect. The aim is to accelerate vehicle renewal, curbing transport-related air pollution and reducing emissions through coordinated action by ministries, state governments and implementing agencies.

Scheme Incentives and Eligibility

The proposed vehicle replacement policy offers substantial incentives for owners scrapping older vehicles at a Registered Vehicle Scrapping Facility (RVSF). Owners of pre-BS, BS-I, BS-II, BS-III and BS-IV vehicles will be eligible for a 100% motor vehicle tax concession, a full registration fee waiver, a 5% interest subvention and an 8% OEM discount on the purchase of a new vehicle.

Benefits for Used Vehicle Replacement

According to the guidelines, buyers replacing their scrapped vehicle with a used vehicle will receive a 50% motor vehicle tax concession and a 5% interest subvention, along with either fuel vouchers for diesel/CNG vehicles or a one-time benefit equivalent to the discounted value of fuel vouchers for electric vehicles. Additionally, a one-time Trade Certificate of Deposit (CoD) benefit equivalent to the discounted value of fuel vouchers will be provided.

For BS-IV vehicles sold outside the National Capital Region (NCR) to non-NCAP cities, buyers will also be eligible for the same incentives on new vehicles and a reduced package for used vehicles, although no Trade CoD benefit will be available.

Fuel Vouchers and EV/CoD Payouts

Owners purchasing diesel or CNG replacement vehicles will be eligible for monthly fuel vouchers for five years, capped at 1200 for LGV/LPV, 2500 for MGV/MPV and 4,800 for HGV/HPV. Those opting for electric replacement vehicles or choosing to trade their Certificate of Deposit (CoD) instead of buying a new vehicle will receive a one-time incentive of 64,000 for LGV/LPV, 1.28 lakh for MGV/MPV, and 2.56 lakh for HGV/HPV.

In addition, pending liabilities of more than one year on eligible vehicles scrapped at Registered Vehicle Scrapping Facilities (RVSFs) will also be waived by the concerned State Governments.

Implementation and Governance

The Ministry of Road Transport and Highways will serve as the nodal implementing ministry, overseeing policy, digital platform development and stakeholder coordination, while the Ministry of Housing and Urban Affairs (MoHUA) and the National Capital Region Planning Board (NCRPB) will provide funding and disburse benefits through the Public Financial Management System (PFMS).

Role of State and District Authorities

State Governments in Delhi, Haryana, Uttar Pradesh and Rajasthan will notify tax concessions, registration fee waivers and liability waivers, while district administrations will monitor on-ground implementation, resolve grievances and facilitate beneficiary onboarding.

Oversight and Monitoring

The scheme will be supervised by an Empowered Committee chaired by the Cabinet Secretary, with senior officials from NITI Aayog, MoHUA, MoRTH, MoPNG, the Department of Financial Services and NCR State Governments, ensuring regular monitoring, inter-ministerial coordination and effective implementation across the National Capital Region. (ANI)

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