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Introduction to PARIVARTAN Initiative

The Ministry of Housing and Urban Affairs has unveiled the official guidelines for the PARIVARTAN program, aimed at reducing air pollution and emissions from transportation through the rapid renewal and incentivization of vehicle assets. These guidelines, issued by the ministry's climate change department, are effective immediately. The initiative seeks to accelerate vehicle renewal in collaboration with various ministries, state governments, and implementing agencies, while also addressing air pollution caused by transportation.

Incentives for Vehicle Owners

The proposed vehicle replacement policy offers substantial incentives for owners who scrap their old vehicles at registered vehicle scrapping facilities (RVSF). Owners of pre-BS, BS-I, BS-II, BS-III, and BS-IV vehicles will be eligible for a complete waiver of motor vehicle tax, full exemption from registration fees, a 5% interest subsidy, and an 8% discount from Original Equipment Manufacturers (OEMs) when purchasing new vehicles.

Benefits for Buyers of Scrapped Vehicles

According to the guidelines, buyers replacing their scrapped vehicles with older models will receive a 50% reduction in motor vehicle tax and a 5% interest subsidy. Additionally, they will benefit from a one-time fuel voucher equivalent to the discounted value for diesel/CNG vehicles or electric vehicles. A 'Trade Certificate of Deposit' (CoD) benefit will also be provided, matching the discounted value of the fuel voucher.

Incentives for Non-NCAP Cities

For BS-IV vehicles sold in non-NCAP cities outside the National Capital Region (NCR), buyers will receive similar incentives for new vehicles, although the benefits for older vehicles will be less substantial, and no CoD benefit will be available.

Monthly Fuel Vouchers for Replacement Vehicles

Owners purchasing diesel or CNG replacement vehicles will be entitled to monthly fuel vouchers for five years, with limits set at 1200 for LGV/LPV, 2500 for MGV/MPV, and 4800 for HGV/HPV. Those opting for electric replacement vehicles or trading their CoD instead of buying a new vehicle will receive a one-time incentive of 64,000 for LGV/LPV, 1.28 lakh for MGV/MPV, and 2.56 lakh for HGV/HPV.

Debt Waivers for Scrapped Vehicles

Furthermore, state governments will waive outstanding liabilities on eligible vehicles that have been scrapped at registered vehicle scrapping facilities (RVSFs) for over a year.

Implementation and Oversight

The Ministry of Road Transport and Highways will serve as the nodal ministry for implementation, overseeing policy development, digital platform creation, and stakeholder coordination. Meanwhile, the Ministry of Housing and Urban Affairs (MoHUA) and the National Capital Region Planning Board (NCRPB) will provide funding and distribute benefits through the Public Financial Management System (PFMS).