PARIVARTAN scheme benefits: Up to ₹2.56 lakh EV incentive, ₹4,800 monthly fuel voucher and 5% loan saving

The government’s PARIVARTAN scheme offers a package of financial and regulatory incentives to commercial vehicle owners replacing old, polluting trucks and buses in Delhi-NCR. Benefits include interest savings on vehicle loans, OEM discounts, tax concessions, fuel vouchers for eligible diesel and CNG vehicles and financial assistance for electric vehicles.

What is the PARIVARTAN scheme?

The Programme for Accelerated Renewal and Incentivization of Vehicle Assets for Reducing Transport Air Pollution and Network Emissions (PARIVARTAN) was approved by the Union Cabinet on June 3, 2026, with a total financial outlay of ₹9,585 crore, including ₹5,041 crore in central government support.

The scheme targets more than 2 lakh trucks and buses conforming to BS-IV or older emission norms registered in Delhi and the NCR districts of Haryana, Rajasthan and Uttar Pradesh. These vehicles are to be replaced with BS-VI or stricter-compliant diesel/CNG vehicles or electric vehicles.

The Ministry of Road Transport and Highways (MoRTH) is implementing the programme through the National Capital Region Planning Board (NCRPB).

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5% interest saving on vehicle loans

One of the key benefits for eligible buyers is a 5% interest subvention on vehicle loans for five years. Canara Bank has been appointed as the nodal bank, with financing support available through participating public-sector banks, private-sector banks and NBFCs.

As of August 27, 42 banks and NBFCs with 3,806 branches had joined the centralised PARIVARTAN portal, and loan disbursements had started.

Up to ₹2.56 lakh incentive for EV buyers

Commercial vehicle owners choosing electric replacements can receive a one-time incentive ranging from ₹64,000 to ₹2.56 lakh, depending on the vehicle category.

This is in addition to other benefits available under the scheme, including applicable tax and registration concessions.

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Up to ₹4,800 monthly fuel vouchers

Owners opting for eligible BS-VI diesel or CNG vehicles can receive monthly fuel vouchers for five years.

The benefit ranges from ₹1,200 to ₹4,800 per month, depending on the vehicle category. Oil marketing companies IOCL, HPCL and BPCL, along with city gas distributor IGL, have been onboarded to facilitate the fuel voucher system.

8% OEM discount and tax benefits

The scheme also provides a minimum 8% discount on the original equipment manufacturer's (OEM) price for eligible replacement vehicles. As many as 15 OEMs, accounting for more than 95% of the commercial vehicle market, have signed agreements with MoRTH.

Delhi, Haryana, Rajasthan and Uttar Pradesh have notified a 10-year motor vehicle tax concession and registration fee waiver for eligible new vehicles. Pending liabilities of more than one year can also be waived for eligible vehicles scrapped through registered facilities.

The scheme has so far seen 1,450 old truck and bus owners register since its July 14 launch. MoRTH expects registrations to cross 25,000 by October 2026.

The programme is being implemented through an integrated digital platform linked with VAHAN, V-Scrap, DigiELV, PFMS, participating lenders and fuel voucher systems, with the aim of ensuring transparent delivery of benefits.

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