New Delhi, June 3: In one of the biggest anti-pollution initiatives for the National Capital Region, the Union Cabinet chaired by Prime Minister Narendra Modi has approved a ₹9,585-crore scheme aimed at removing over two lakh polluting trucks and buses from Delhi-NCR roads and replacing them with cleaner BS-VI and electric vehicles.
The ambitious two-year programme will be implemented through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs, in coordination with the Ministries of Road Transport and Highways and Petroleum and Natural Gas. The scheme will cover Delhi, Haryana, Rajasthan and Uttar Pradesh.
The move comes as Delhi-NCR continues to battle severe air pollution, particularly during winter months, with heavy-duty commercial vehicles identified as one of the largest contributors to harmful emissions.
Under the scheme, owners of approximately 2.07 lakh vehicles, including 1.91 lakh trucks and 16,329 buses registered in Delhi-NCR, will be encouraged to replace older BS-IV and pre-BS-IV vehicles with BS-VI compliant or electric vehicles through a combination of financial incentives, tax concessions and fuel support.
According to government estimates, trucks and buses account for 36% of PM2.5 emissions from the transport sector despite constituting only around 3% of the total vehicle fleet in the region. Studies have shown that a single pre-BS vehicle can emit pollution equivalent to 14 BS-VI vehicles, highlighting the potential impact of fleet modernization.
For vehicles classified as BS-III or older, scrapping through authorised Registered Vehicle Scrapping Facilities will be mandatory. BS-IV vehicles can either be scrapped or sold outside NCR limits in non-NCAP cities and towns before owners become eligible for scheme benefits.
In a significant push towards cleaner mobility, Delhi will require Light Goods Vehicles purchased under the scheme to be electric. Buses purchased under the programme in the capital must be either BS-VI CNG or fully electric.
The Centre will offer a 5% interest subvention on vehicle loans for five years, reducing financing costs for vehicle owners. Beneficiaries will also receive monthly fuel vouchers worth up to ₹4,800 depending on vehicle category, along with additional incentives linked to electric vehicle purchases or Certificate of Deposit trading.
State governments participating in the programme will provide major tax benefits, including waiver of registration fees, up to 100% exemption on motor vehicle tax for new vehicles, 50% tax concessions on used vehicles for ten years, and waiver of pending liabilities on old vehicles entering the scheme.
Automobile manufacturers participating in the initiative have also agreed to provide discounts of up to 8% on ex-showroom vehicle prices, making fleet replacement more affordable.
The entire programme will operate through a digital platform that will enable real-time eligibility verification, automated processing of interest subsidies, monthly fuel voucher credits and monitoring of pollution reduction outcomes.
Although enrolment under the scheme will remain open for two years, benefits provided by the Central Government will continue for five years from the date of registration of the new vehicle.
To ensure effective implementation, an Empowered Committee chaired by the Cabinet Secretary will oversee the programme. Members will include the CEO of NITI Aayog, Secretaries of key ministries, Chief Secretaries of NCR states and senior NCRPB officials.
At the district level, District Magistrates and District Collectors will be responsible for monitoring implementation and ensuring compliance.
Officials believe the scheme could significantly improve air quality in Delhi-NCR by accelerating the retirement of highly polluting commercial vehicles and encouraging a rapid transition towards cleaner transport technologies.
