The Union Cabinet has approved a two-year scheme to support the replacement of old trucks and buses in the Delhi-NCR region. The scheme aims to curb air pollution in the Delhi-NCR region and promote cleaner mobility. It will encourage owners of trucks and buses complying with BS-IV or older emission norms to replace them with cleaner BS-VI or electric vehicles. Around 207,000 vehicle owners, including 191,000 truck owners and 16,329 bus owners, are expected to benefit. Under the scheme, BS-III or older vehicles will be scrapped, while BS-IV vehicles can either be scrapped or sold outside NCR in non-NCAP cities and towns before a new eligible vehicle is purchased and registered within NCR.
Moreover, the scheme has a total outlay of Rs 95.85 billion, including Rs 50.41 billion from the central government and an estimated Rs 16.01 billion in tax concessions from Delhi, Haryana, Rajasthan, and Uttar Pradesh. It will be funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs. Additionally, it will be implemented by the Ministry of Road Transport and Highways and the Ministry of Petroleum and Natural Gas in coordination with Delhi, Haryana, Rajasthan, and Uttar Pradesh.
To support the transition, the central government will provide a 5 per cent interest subvention on loans for five years, monthly fuel vouchers, and additional benefits for electric vehicle purchases or certificate of deposit trading. Furthermore, state governments will offer registration fee waivers, motor vehicle tax concessions, and a waiver of pending liabilities on old vehicles. Auto original equipment manufacturers will provide 8 per cent discounts on ex‑showroom prices.
