PARIVARTAN Scheme: Opportunity to replace old trucks and buses; government offers benefits ranging from 5% interest relief to ₹2.56 lakh

Replacing old trucks and buses with new BS-VI, CNG, or EV models offers multiple benefits. Find out the incentives, discounts, and tax exemptions available under the PARIVARTAN scheme.

The government's PARIVARTAN scheme brings significant relief to operators of old, high-polluting commercial trucks and buses in the Delhi-NCR region. Various benefits are being offered for replacing old BS-IV (or older) vehicles with new BS-VI, CNG, or electric vehicles. These include interest relief of up to 5% on vehicle loans, financial assistance of up to ₹2.56 lakh for purchasing electric vehicles, monthly fuel vouchers, OEM discounts, and exemptions on taxes and registration fees.

This scheme aims to facilitate the replacement of over 2 lakh old trucks and buses registered in Delhi and the NCR districts of Haryana, Rajasthan, and Uttar Pradesh.

What exactly is the PARIVARTAN scheme, and who is it for?

PARIVARTAN stands for "Programme for Accelerated Renewal and Incentivization of Vehicle Assets for Reducing Transport Air Pollution and Network Emissions." It received approval from the Union Cabinet on June 3, 2026. The scheme has a total budget of ₹9,585 crore, with the Central Government's share amounting to ₹5,041 crore.

Its objective is to remove old commercial vehicles from the roads and promote new, less polluting vehicles. Old vehicles can be replaced with BS-VI (or superior) diesel/CNG vehicles or electric vehicles. The scheme is being implemented by the Ministry of Road Transport and Highways (MoRTH) through the NCR Planning Board.

How much can be saved on loans, EVs, and fuel?

Eligible vehicle owners who replace their vehicles will receive various benefits:

Interest relief of 5% on vehicle loans, available for a period of up to 5 years.
A one-time incentive ranging from ₹64,000 to ₹2.56 lakh for purchasing electric commercial vehicles. Eligible BS-VI diesel and CNG vehicles will receive monthly fuel vouchers ranging from ₹1,200 to ₹4,800 for a period of five years.
A minimum discount of 8% on the OEM price of the new vehicle will be provided.
Provisions include a waiver of registration fees and a concession on motor vehicle tax for up to 10 years for eligible new vehicles.
The incentive amount will vary depending on the vehicle category.

How will the loan and fuel voucher arrangements be handled?

Canara Bank has been designated as the nodal bank for this scheme. By August 27, 42 banks and NBFCs, with a combined network of 3,806 branches, had integrated with the centralized PARIVARTAN portal, and loan disbursements had already commenced. IOCL, HPCL, BPCL, and the city gas distributor IGL have been onboarded to facilitate the fuel voucher component; essentially, a dedicated system has been established to provide fuel-related benefits to eligible vehicle owners.

How many people have registered so far?

The scheme was launched on July 14, and to date, 1,450 owners of old trucks and buses have registered under it. The Ministry of Road Transport and Highways (MoRTH) expects the registration figure to exceed 25,000 by October 2026.

The entire process under the scheme is integrated into a digital platform linked with VAHAN, V-Scrap, DigiELV, PFMS, lenders, and the fuel voucher system. This aims to ensure greater transparency across the entire workflow—from scrapping the old vehicle and purchasing a new one to availing the scheme's benefits.