In a bid to curb air pollution in the Delhi-National Capital Region, the Centre on Wednesday announced a Rs 9,585-crore scheme to replace older trucks and buses in the region with cleaner BS-VI or electric vehicles.
Of the total Rs 9,585 crore financial outlay, Rs 5,041 crore will be from the Central government and an estimated Rs 1,601 crore will be in tax concessions from participating state governments.
Owners operating BS-IV and older trucks and buses registered in Delhi-NCR will be eligible for benefits if they replace their existing vehicles with BS-VI or stricter emission norm-compliant vehicles or electric vehicles registered within the NCR.
The scheme will be implemented jointly by the Ministry of Road Transport and Highways (MORTH), the National Capital Region Planning Board (NCRPB), and the governments of Delhi, Haryana, Uttar Pradesh and Rajasthan.
Implementation will be fully digital through an integrated portal that will enable real-time eligibility checks, automated interest subvention claims, monthly fuel voucher credits and monitoring of pollution reduction outcomes.
According to the government, older diesel trucks and buses remain significant contributors to air pollution in the National Capital Region. Vehicles complying with BS-I to BS-IV norms emit around 67% more carbon monoxide and 97% more particulate matter than BS-VI vehicles.
The decision comes as policymakers seek to accelerate the replacement of ageing commercial vehicles that contribute disproportionately to vehicular emissions in the region.
The Centre said benefits such as interest subvention and fuel vouchers will continue for five years from the date of registration of the replacement vehicle, extending support beyond the two-year enrolment window.
The financial incentive package to encourage fleet owners to replace older vehicles includes a 5% interest subvention on vehicle loans for five years, monthly fuel vouchers worth up to Rs 4,800 depending on vehicle category through oil marketing companies, and lump-sum benefits for electric vehicle purchases or Certificate of Deposit trading.
Participating vehicle manufacturers will also offer an 8% discount on ex-showroom prices.
For BS-III and older vehicles, scrapping at a registered vehicle scrapping facility will be mandatory. Owners of BS-IV vehicles can either scrap their vehicles or sell them outside the NCR in non-NCAP cities and towns before purchasing a replacement vehicle.
In Delhi, light goods vehicles purchased under the scheme must be electric, while buses will be eligible only if they are BS-VI CNG-powered or electric. Government-owned vehicles will not be covered under the programme.
The government also urged state governments to provide 100% concession on motor vehicle tax and waive registration fees for new replacement vehicles. Used BS-VI vehicles purchased under the scheme will receive a 50% concession. The benefits will remain valid for 10 years.
While announcing the scheme, Information and Broadcasting Minister Ashwini Vaishnaw said the initiative will target more than 1.9 lakh trucks and around 16,000 buses currently operating in Delhi-NCR that fall under the BS-IV and older emission categories.
Delhi-NCR regularly records some of the country's highest pollution levels, particularly during the winter months, prompting authorities to introduce a series of measures aimed at reducing emissions from transport, industry and construction activities.
The new scheme is expected to help modernise the region's commercial vehicle fleet while supporting cleaner transport technologies, including electric buses and trucks.