Pollution fight: Cabinet approves scheme worth Rs 5,041 crore to replace old trucks and buses in Delhi-NCR

In a major clean-air initiative aimed at reducing vehicular pollution in the National Capital Region, the Union Cabinet has approved a Rs 5,041 crore scheme to replace older trucks and buses in Delhi-NCR with cleaner BS-VI and electric vehicles, backed by a package of financial incentives for vehicle owners, Union minister Ashwini Vaishnaw said on Wednesday.

According to govt statement, the scheme targets more than 1.9 lakh trucks and 16,000 buses currently operating in the region. The move is based on estimates that older diesel vehicles remain a significant contributor to Delhi-NCR's air pollution burden.

The government said BS-I to BS-IV vehicles emit 67% more carbon monoxide (CO) and 97% more particulate matter than BS-VI vehicles, making fleet modernisation a key component of efforts to improve air quality.

To encourage participation, the scheme provides a range of incentives for owners of eligible vehicles. These include a 5% interest subvention on vehicle loans, monthly fuel vouchers for five years through oil marketing companies (OMCs) and ex-showroom discounts from automobile manufacturers.

The scheme applies to owners of active BS-IV and older trucks and buses registered in Delhi-NCR.

Under the framework, vehicle owners will be required to either scrap their old vehicles at a registered vehicle scrapping facility or sell them in a non-NCAP city before purchasing and registering a new or used BS-VI or electric vehicle in Delhi-NCR.

State governments will also provide significant tax benefits. According to the presentation, owners purchasing new vehicles will receive a 100% concession in motor vehicle tax and a waiver of registration fees, while used BS-VI vehicles will be eligible for a 50% concession. The benefits will remain valid for 10 years.

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.

The Cabinet approval comes as policymakers continue to explore measures to curb transport-related emissions in Delhi-NCR, where deteriorating air quality remains one of the region's most persistent environmental challenges. Officials expect the replacement of older diesel fleets with cleaner BS-VI and electric alternatives to contribute significantly to lowering emissions from the commercial transport sector.



Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.