Cabinet Okays Rs 9,585 Crore Scheme To Replace Old Trucks, Buses In Delhi-NCR

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a landmark two-year scheme aimed at reducing air pollution in the Delhi-NCR region and promoting cleaner mobility.

With a total financial outlay of Rs 9,585 crore, including Rs 5,041 crore from the Central Government and an estimated Rs 1,601 crore in tax concessions from the participating states, the scheme seeks 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), according to an official statement.

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 Road Transport and Highways (MoRTH) and Ministry of Petroleum and Natural Gas (MoPNG). It will be implemented in collaboration with the participating states and Union Territories of Delhi, Haryana, Rajasthan, and Uttar Pradesh.

The scheme will benefit approximately 2.07 lakh (1.91 lakh trucks and 16,329 buses) vehicle owners in Delhi-NCR (comprising Delhi, Haryana, Rajasthan, and Uttar Pradesh), the statement said.

For BS-III or older vehicles, scrapping at Registered Vehicle Scrapping Facilities is mandatory, while BS-IV vehicles may either be scrapped or sold outside NCR in non-NCAP cities/towns. 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.

The Centre will provide 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, the statement said.

State governments will waive registration fees and grant up to 100 per cent motor vehicle tax concessions for new vehicles and 50 per cent for used vehicles for 10 years. State government will also waive of pending liabilities on the old vehicles participating in the scheme.

Participating auto original equipment manufacturers (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 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.

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.

Air pollution in Delhi-NCR remains a severe public health challenge, particularly during winter months.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)