Prelims
The PARIVARTAN Scheme
Context: The Union Government’s newly launched PARIVARTAN Scheme has gained rapid traction, registering over 1,300 beneficiaries, onboarding 42 banks/NBFCs, and partnering with 15 auto OEMs across Delhi-NCR.
About The PARIVARTAN Scheme:
What It Is?
- PARIVARTAN (Programme for Accelerated Renewal and Incentivization of Vehicle Assets for Reducing Transport Air Pollution and Network Emissions) is a comprehensive vehicle scrappage and fleet renewal program designed to replace pre-BS-IV and BS-IV commercial trucks and buses registered in Delhi-NCR with cleaner BS-VI compliant or electric vehicles.
Implementing Ministry: Ministry of Road Transport and Highways (MoRTH).
Funding Agency: National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs (MoHUA).
Aim: To phase out and replace over 2 lakh older, high-emission commercial trucks and buses operating across the National Capital Region (NCR) to drastically curb vehicular air pollution and toxic particulate emissions.
Key Features of the Scheme:
- Substantial Financial Backing: Features a total financial outlay of ₹9,585 crore, backed by ₹5,041 crore in direct budgetary support from the Central Government.
- Interest Subvention on Fleet Loans: Provides a 5% interest savings on eligible commercial vehicle loans for a period of 5 years via 42 onboarded banks and NBFCs.
- Comprehensive Tax & Fee Waivers: Offers a complete 100% Road Tax waiver for 10 years along with a full waiver on vehicle registration fees, notified across Delhi, Haryana, Rajasthan, and Uttar Pradesh.
- Mandatory OEM Purchase Discounts: Participating automobile manufacturers provide an upfront discount of at least 8% on the ex-showroom price of new eligible vehicles.
- Operational Fuel & EV Subsidies:
- For BS-VI Diesel/CNG: Monthly fuel vouchers ranging from ₹1,200 to ₹4,800 for five years.
- For Electric Vehicles (EVs): A direct, one-time purchase incentive ranging between ₹64,000 and ₹2.56 lakh depending on the vehicle category.
Significance:
- Replacing 2 lakh+ diesel vehicles with BS-VI and EVs can significantly reduce PM2.5, PM10 and NOx emissions.
- Financial and tax incentives encourage fleet replacement and EV adoption, supporting domestic commercial EV manufacturing.
