Cabinet Approves Two Year Scheme To Replace Old Trucks And Buses

The Union Cabinet, chaired by the Prime Minister, approved a two-year scheme to reduce air pollution in the Delhi–NCR region and promote cleaner mobility. The programme will be 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 and the Ministry of Petroleum and Natural Gas, with participating States and Union Territories of Delhi, Haryana, Rajasthan and Uttar Pradesh. The total financial outlay has been set at Rs 95.85 billion (bn), with the Central Government contributing Rs 50.41 bn and participating States providing tax concessions estimated at Rs 16.01 bn.

The scheme seeks to incentivise owners of trucks and buses registered in the Delhi–NCR area that comply with BS?IV or earlier emission norms to replace them with BS?VI or stricter emission-compliant vehicles or electric vehicles. It is expected to accelerate the transition to cleaner transport technologies and to reduce vehicular emissions across the region. Participating original equipment manufacturers will offer eight per cent discounts on ex-showroom prices, and the Centre will provide financial and non-financial incentives to encourage uptake.

The scheme is expected to benefit about 0.207 million (mn) owners, comprising about 0.191 mn trucks and 16,329 buses across Delhi, Haryana, Rajasthan and Uttar Pradesh. For BS?III or older vehicles, scrapping at Registered Vehicle Scrapping Facilities is mandatory, while BS?IV vehicles may be scrapped or sold outside the NCR in non-NCAP towns and cities. Owners must purchase and register a BS?VI or stricter norms compliant vehicle or an electric vehicle within the NCR, with Delhi requiring Light Goods Vehicles purchased under the scheme to be electric and buses to be BS?VI CNG or electric.

Central benefits include a five per cent interest subvention on loans for five years, monthly fuel vouchers worth up to Rs 4,800 depending on vehicle category, and lump sum support for electric vehicle purchases or Certificate of Deposit trading. State governments will waive registration fees and grant up to 100 per cent motor vehicle tax concessions for new vehicles and 50 per cent for used vehicles for ten years, and will waive pending liabilities on old vehicles participating in the scheme.

Implementation will be fully digital through an integrated portal to enable real time eligibility checks, automated interest subvention claims, monthly fuel voucher credits and monitoring of pollution reduction outcomes. The scheme will be overseen by an Empowered Committee chaired by the Cabinet Secretary with senior officials from relevant ministries and Chief Secretaries of participating States, while district collectors will implement and monitor at the local level. Central benefits will continue for five years from the date of registration of new vehicles to ensure sustained impact beyond the two year enrolment window.