The Central Government's incentive scheme for owners of pre-BS-VI trucks, buses and other goods vehicles in the Delhi-NCR region to replace them with BS-VI or electric vehicles will remain in effect for two years, until July 14th, 2028, according to the guidelines made public on July 22nd.

Under the Parivartan scheme, owners who replace their old vehicles by retiring or selling them and purchase BS-VI or electric vehicles will receive a full waiver of registration fees, a 100% waiver of motor vehicle tax for up to 10 years, a 5% interest subsidy on new vehicle loans for five years, a minimum 8% discount from vehicle manufacturers, and monthly fuel vouchers for five years. Eligible beneficiaries must use the fuel voucher within the month of issue; otherwise, it will lapse.

According to the scheme, those purchasing new BS-VI diesel or CNG vehicles after scrapping or selling their old vehicles will receive monthly fuel vouchers capped at Rs. 1,200 (US$ 15) for light goods vehicles, Rs. 2,500 for medium goods vehicles, and Rs. 4,800 for heavy goods vehicles. Those opting for electric vehicles will receive a one-time incentive of Rs. 64,000, Rs. 120,000 and Rs. 250,000 for the three vehicle categories, respectively.

The guidelines specify that, to be eligible, owners must scrap their old vehicles at a registered vehicle acrapping facility and obtain a certificate of deposit (CoD). Applicants may also sell their old vehicles outside the NCR, provided that the vehicles are re-registered outside the 130 cities covered under the National Clean Air Programme.

Eligible beneficiaries who do not intend to purchase a replacement vehicle may trade their CoDs and receive the applicable one-time benefit.

The voluntary scheme, with a total outlay of Rs. 95.85 billion, including budgetary support of Rs. 50.41 billion from the Central Government, was approved by the Union Cabinet on June 3rd. The Ministry of Road Transport and Highways will implement the scheme, while funding will be provided through the National Capital Region Planning Board. The government has launched a dedicated website for the scheme, which eligible applicants can use to submit their applications.