MoHUA clears Guidelines for PARIVARTAN Scheme to Accelerate Replacement of Old Trucks and Buses in NCR

MoHUA has approved the Guidelines for the PARIVARTAN (Programme for Accelerated Renewal and Incentivization of Vehicle Assets for Reducing Transport Air Pollution and Network Emissions) Scheme, aimed at facilitating the replacement of older, highly polluting trucks and buses operating in the National Capital Region (NCR) with cleaner Bharat Stage (BS)-VI compliant or electric vehicles. The Scheme, with a total outlay of Rs. 9,585 crore - including budgetary support of Rs. 5,041 crore from the Central Government - was approved by the Union Cabinet on 3 June 2026.

Source

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Quick Revision

Prelims-testable facts

01The PARIVARTAN Scheme has a total outlay of Rs. 9,585 crore.
02The Central Government is providing budgetary support of Rs. 5,041 crore for the PARIVARTAN Scheme.
03The Ministry of Road Transport and Highways (MoRTH) will be the implementing Ministry under the PARIVARTAN Scheme.
04The National Capital Region Planning Board (NCRPB) will fund the PARIVARTAN Scheme.
05The PARIVARTAN Scheme aims to replace older, highly polluting trucks and buses with cleaner Bharat Stage (BS)-VI compliant or electric vehicles in the NCR region.
06Motor Vehicle Tax concessions and registration fee waivers are provided for new vehicles purchased under the PARIVARTAN Scheme.
07A 5% interest subvention on vehicle loans is offered for eligible new vehicles under the PARIVARTAN Scheme.

Trap alerts

Most people think the PARIVARTAN Scheme only targets diesel vehicles, but actually it also includes CNG replacement vehicles.
Most people think the Central Government is funding the entire outlay of Rs. 9,585 crore, but actually participating States are expected to contribute an estimated Rs. 1,601 crore in tax concessions.

Prelims Practice MCQs

Multiple statementsmedium

Consider the following statements regarding PARIVARTAN Scheme: 1. The PARIVARTAN Scheme has an outlay of Rs. 10,000 crore. 2. The Central Government is providing a budgetary support of Rs. 5,041 crore for the Scheme. 3. The Ministry of Road Transport and Highways (MoRTH) is implementing the Scheme. How many of the above statements are correct?

A.Only one
B.Only two
C.All three
D.None

Statement 1 is incorrect because the actual outlay of the Scheme is Rs. 9,585 crore. Statement 2 is correct based on the source text, which mentions that the Central Government is providing a budgetary support of Rs. 5,041 crore for the Scheme.

Statement I & IIhard

Consider the following two statements: Statement-I: The PARIVARTAN Scheme will provide a minimum 10% OEM discount on eligible new vehicles. Statement-II: This is because the Scheme provides a comprehensive package of incentives, including a minimum 8% OEM discount on eligible new vehicles. Which one of the following is correct in respect of the above statements?

A.Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
B.Both Statement-I and Statement-II are correct but Statement-II is not the correct explanation for Statement-I
Statement-I is correct but Statement-II is incorrect

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