ANI
03 Jun 2026, 19:02 GMT+10
New Delhi [India], June 3 (ANI): The Union Cabinet on Wednesday approved a Rs. 9,585 crore scheme to replace old trucks and buses to curb air pollution in the Delhi-NCR. The scheme will be funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs (MoHUA) and implemented by the Ministry of Petroleum and Natural Gas (MoPNG) and the Ministry of Road Transport and Highways (MoRTH).
Targeting 1.91 lakh trucks and 16,329 buses, it will be implemented in collaboration with the participating states and Union Territories of Delhi, Haryana, Rajasthan, and Uttar Pradesh, as per a Cabinet press release.
'The scheme aims to incentivise owners of trucks and buses registered in the Delhi-NCR region that comply with BS-IV or earlier emission norms to replace them with BS-VI or stricter emission-compliant vehicles, or electric vehicles (EVs),' the release said.
The scheme has a total financial outlay of Rs. 9,585 crore, which includes Rs. 5,041 crore from the Central Government and around Rs. 1,601 crore in tax concessions from the participating states, as per the release.
By accelerating the transition to cleaner transport technologies, the scheme is expected to significantly reduce vehicular emissions and contribute to improved air quality across the Delhi-NCR region.
As per the release, 'Source Apportionment of Particulate Matter (PM 2.5 and PM 10) in the NCR' by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI), the transport sector contributes 14 per cent of PM 2.5, 40 per cent of Carbon Monoxide (CO), and 63 per cent of Nitrogen Oxide (NOx) emissions in the Delhi-NCR.
Notably, with only 3 per cent of the total fleet, 'trucks and buses account for 36% of PM 2.5 emissions,' the release added.
The Central Government will offer 5 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 benefits for EV purchases or Certificate of Deposit trading.
On the other hand, the 'State governments will waive registration fees and grant up to 100% motor vehicle tax concessions for new vehicles and 50% for used vehicles for 10 years. State Government will also waive pending liabilities on the old vehicles participating in the scheme.'
Additionally, the participating auto OEMs will offer 8 per cent discounts on ex-showroom prices.
'Implementation will be fully digital through an integrated portal, which will enable real-time eligibility checks, automated interest subvention claims, monthly fuel voucher credits, and monitoring of pollution reduction outcomes. The benefits by the central government will continue for 5 years from the date of registration of the new vehicle, ensuring sustained impact beyond the two-year enrolment window,' it siad.
'It is estimated that a single Pre-BS heavy-duty vehicle emits as much as 14 BS-VI compliant vehicles. Even a BS-IV vehicle emits 2.7 times more than a BS-VI counterpart. Hence, the newer fleet is expected to reduce the vehicular pollution substantially,' it said.
As per the scheme, 'scrapping at Registered Vehicle Scrapping Facilities is mandatory for the BS-III or older vehicles,' meanwhile 'BS-IV vehicles may either be scrapped or sold outside NCR in non-NCAP cities/towns.'
The release further added that the 'Owners must then purchase and register a BS-VI or stricter norms-compliant or electric vehicle within NCR. However, In Delhi, Light Goods Vehicles purchased under the scheme must be electric, while buses must be BS-VI CNG or electric only. Government vehicles are excluded from the scheme.'(ANI)
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