Centre targets replacement of two lakh old trucks, buses in Delhi-NCR within a year

The Union government aims to replace more than 2 lakh trucks and buses in Delhi and the National Capital Region (NCR) with BS-VI or electric vehicles within a year under the PARIVARTAN scheme, bringing forward the two-year implementation timeline approved by the Union Cabinet, Road Secretary V. Umashankar said.

The PARIVARTAN (Programme for Accelerated Renewal and Incentivisation of Vehicle Assets for Reducing Transport Air Pollution and Network Emissions) scheme, approved by the Cabinet on June 3 and launched on July 14, seeks to replace trucks and buses registered in Delhi and the NCR districts of Haryana, Rajasthan and Uttar Pradesh that conform to BS-IV or older emission norms. The scheme is being funded through the National Capital Region Planning Board under the Ministry of Housing and Urban Affairs and implemented by the Ministry of Road Transport and Highways.

Although trucks and buses account for just 3.1% of the total vehicle fleet in the region, they contribute 36% of vehicular PM2.5 emissions, officials said at a press briefing to explain the rationale behind the scheme.

Incentives galore

With a total financial outlay of ₹9,585 crore, including ₹5,041 crore in central budgetary support, the scheme offers a package of incentives to eligible buyers of new BS-VI or stricter-compliant diesel and CNG vehicles, as well as electric vehicles. These include a 5% interest subvention on eligible vehicle loans for five years, a 100% road-tax waiver for 10 years and exemption from registration fees. Delhi, Haryana, Rajasthan and Uttar Pradesh have already issued notifications providing these exemptions.

Eligible buyers will also get at least an 8% discount on the ex-showroom price from participating vehicle manufacturers. Buyers of BS-VI diesel or CNG vehicles will additionally receive monthly fuel vouchers ranging from ₹1,200 to ₹4,800, depending on the vehicle category, for five years, while electric vehicle buyers will be eligible for a one-time incentive ranging from ₹64,000 to ₹2.56 lakh.

The scheme has so far seen more than 1,300 beneficiaries register on the PARIVARTAN portal. Forty-two banks and non-banking financial companies have been onboarded to provide interest subvention on vehicle loans, while 15 automobile manufacturers have signed MoUs to extend the mandated discounts to eligible buyers, Mr. Umashankar said.

To avail of the scheme, eligible beneficiaries will have to scrap their BS-III or older trucks and buses. BS-IV vehicles, however, can either be scrapped or sold outside the NCR.