The government has begun preparations to remove older and more polluting commercial vehicles from the streets of Delhi with the aim of reducing air pollution levels. The Delhi government has approved the implementation of the central 'Parivartan' program in the region. According to this program, approximately 78 thousand old BS-3 and BS-4 trucks have been identified in Delhi.
Considering the entire Delhi-NCR region, potentially around 207 thousand owners of trucks and buses may benefit from this scheme. The state will provide financial support to vehicle owners who scrap their old vehicles and purchase new vehicles that comply with BS-VI standards, running on CNG or electricity. Currently, participation in this program is voluntary, and owners will not be forced to replace their vehicles.
Owners who scrap an old vehicle and buy a new one will receive several significant benefits. The most substantial bonus is a complete exemption from vehicle tax and registration fees for ten years. Additionally, a subsidy of 5 percent on the interest rate for loans taken to purchase the vehicle will be provided. Manufacturers participating in the program (OEMs) will also offer discounts of up to 8 percent. For eligible vehicles, a fuel voucher or a lump-sum payment equivalent to its reduced cost will be provided.
If a vehicle owner scraps their BS-IV or older Light Goods Vehicle (LGV) and purchases a new electric LGV, they will receive a full waiver of vehicle tax and registration fees for 10 years, as well as a 5 percent interest subsidy. Furthermore, the company will provide an OEM discount of up to 8 percent on the purchase.
In the case of purchasing a used electric vehicle instead of a new electric one, a 50 percent discount on vehicle tax for 10 years, a 5 percent interest subsidy, and a lump-sum payment equivalent to a fuel voucher will be provided.
The program also allows for the replacement of Medium Goods Vehicles (MGV)/Heavy Goods Vehicles (HGV) of BS-IV or older standards. Upon scrapping such a vehicle and purchasing a new truck that meets BS-VI standards or has higher environmental standards, or an electric truck, the owner will receive a 100 percent exemption from vehicle tax and registration fees for 10 years. A 5 percent interest subsidy, an OEM discount of up to 8 percent, and a fuel voucher benefit are also provided.
When purchasing a used BS-VI truck or an electric truck, a 50 percent exemption from vehicle tax for 10 years, a 5 percent interest subsidy, and a lump-sum payment equivalent to a fuel voucher will be provided.
Buses of BS-IV standard and older are also included in the program. They can only be replaced by BS-VI CNG buses or electric buses. Bus owners will receive similar benefits to truck owners: tax exemptions, eased registration fees, interest subsidies, OEM discounts, and fuel vouchers. The government stated that the program will also provide assistance regarding technical condition fines and road tax for scrapped vehicles whose payment period exceeds one year.
Moreover, BS-IV vehicles are not necessarily required to be scrapped in all cases. Such vehicles can be sold in cities outside the NCR that are not on the National Clean Air Programme list. The government has set an important condition for promoting clean transport in Delhi: new LGVs purchased in Delhi must be exclusively electric, and for new buses, only BS-VI CNG or electric buses are permitted.