Modi Govt Approves Mega Vehicle Replacement Scheme for NCR
Over 2 lakh truck and bus owners to receive incentives for switching to BS-VI and electric vehicles.
- Cabinet clears ₹9,585-crore scheme to curb air pollution in Delhi-NCR
- Around 2.07 lakh truck and bus owners to benefit
- Interest subsidy, fuel vouchers and tax concessions offered
- Focus on replacing BS-IV and older vehicles with cleaner alternatives
GG News Bureau
New Delhi, 3rd June: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a ₹9,585-crore scheme aimed at replacing older trucks and buses in the Delhi-NCR region to reduce vehicular pollution and promote cleaner mobility.
The two-year scheme will be funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs and implemented by the Ministries of Road Transport and Highways and Petroleum and Natural Gas in coordination with the governments of Delhi, Haryana, Rajasthan and Uttar Pradesh.
The initiative has a total financial outlay of ₹9,585 crore, including ₹5,041 crore from the Central Government and an estimated ₹1,601 crore in tax concessions from participating states.
Under the scheme, owners of trucks and buses registered in Delhi-NCR that comply with BS-IV or older emission standards will be encouraged to replace them with BS-VI-compliant or electric vehicles.
According to the government, the scheme is expected to significantly reduce vehicular emissions and improve air quality in one of the country’s most polluted urban regions.
Official estimates indicate that around 2.07 lakh vehicle owners, including approximately 1.91 lakh truck owners and 16,329 bus owners, will be eligible for benefits under the programme.
The Cabinet noted that the transport sector is a major contributor to air pollution in the Delhi-NCR region. Studies by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI) have shown that trucks and buses account for 36 per cent of PM2.5 emissions despite constituting only about 3 per cent of the total vehicle fleet.
The government said a single pre-BS heavy-duty vehicle can emit pollution equivalent to 14 BS-VI-compliant vehicles, while a BS-IV vehicle emits nearly 2.7 times more than a BS-VI vehicle.
Under the scheme, BS-III and older vehicles must be scrapped at authorised Registered Vehicle Scrapping Facilities. BS-IV vehicles can either be scrapped or sold outside the NCR region in non-NCAP cities and towns.
Vehicle owners will then be required to purchase and register a BS-VI-compliant or electric vehicle within the NCR region.
In Delhi, Light Goods Vehicles purchased under the scheme must be electric, while buses must be either BS-VI CNG-powered or electric. Government-owned vehicles are excluded from the scheme.
To encourage participation, the Centre will provide a 5 per cent interest subvention on vehicle loans for five years, monthly fuel vouchers worth up to ₹4,800 depending on vehicle category, and lump-sum incentives for electric vehicle purchases or Certificate of Deposit trading.
State governments will waive registration fees and offer up to 100 per cent motor vehicle tax concessions on new vehicles and 50 per cent concessions on used vehicles for a period of 10 years. Pending liabilities on old vehicles participating in the scheme will also be waived.
Automobile manufacturers participating in the programme will provide discounts of 8 per cent on ex-showroom prices of eligible vehicles.
The entire implementation process will be managed through a digital platform that will facilitate eligibility verification, automated incentive disbursal, fuel voucher credits and monitoring of pollution reduction outcomes.
An Empowered Committee chaired by the Cabinet Secretary will oversee the implementation of the scheme. The committee will include senior officials from NITI Aayog, relevant ministries and participating state governments.
At the district level, District Collectors and District Magistrates will be responsible for monitoring and execution.
The government said the initiative is expected to accelerate the transition to cleaner transport technologies while delivering long-term benefits for public health and environmental sustainability across the Delhi-NCR region.
