Union Cabinet approves scheme for support to NCRPB for replacement of old trucks and buses in Delhi-NCR area
New Delhi, June 3
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a two-year scheme aimed at reducing air pollution and promoting cleaner mobility in the Delhi-NCR region.
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 the 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.
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).
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 the Delhi-NCR remains a severe public health challenge, particularly during the winter months.
As per the report on "Source Apportionment of Particulate Matter (PM 2.5 and PM 10) in the NCR" prepared by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI), published in August 2018, the transport sector contributes 14% of PM 2.5, 40% of Carbon Monoxide (CO), and 63% of Nitrogen Oxide (NOx) emissions in the Delhi-NCR. Within the transport sector, trucks and buses account for 36% of PM 2.5 emissions, with only 3% of the total fleet.
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 vehicular pollution substantially.
The scheme will benefit approximately 2.07 lakh, which includes 1.91 lakh trucks and 16,329 bus owners in Delhi-NCR (comprising Delhi, Haryana, Rajasthan, and Uttar Pradesh).
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.
According to the Union Cabinet, the Centre will provide 5% 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.
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. It will also waive pending liabilities on the old vehicles participating in the scheme.
Additionally, participating Auto OEMs will offer 8% discounts on ex-showroom prices.
According to the Union Cabinet, the scheme will be implemented digitally 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 from 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.
The scheme will be monitored by an Empowered Committee, chaired by the Cabinet Secretary with the CEO, Niti Ayog, Secretaries of MoHUA, MoRT&H, MoPNG, DFS, Chief Secretaries of states in Delhi NCR as members, and Member Secretary of NCRPB being the member convenor. At the district level, District Collectors/ District Magistrates will be implementing and monitoring the scheme.
— ANI
Reader Comments
As someone who drives a BS-IV truck for work, I appreciate the government is trying something. But the mandatory scrapping for BS-III and older vehicles—that's a big ask. Many small operators like me can't afford to just junk a running vehicle. The Rs 5,041 crore central outlay is huge, but will it reach the actual owners? I'm cautiously optimistic.
This is a long-overdue move! The stats are shocking: one pre-BS truck equals 14 BS-VI vehicles in pollution, and trucks/buses contribute 36% of transport PM 2.5 even though they're only 3% of the fleet. That maths alone justifies the Rs 9,585 crore outlay. But I hope Delhi's rule for LGVs to be electric and buses to be CNG/electric is enforced strictly—no loopholes for old polluting vehicles. 🚛🌱
The scheme sounds promising, but I'm concerned about the implementation. Empowered Committee chaired by Cabinet Secretary is good, but will District Collectors actually enforce it across Haryana, UP, and Rajasthan? We've seen many Yojanas fail at the ground level. Also, why exclude government vehicles? They also contribute to pollution—seems like a missed opportunity for leadership by example.
Good initiative but the real test will be winter 2025. The article says the scheme runs for two years with benefits for 5 years, so we won't see immediate results. Also, Rs 4,800 per month in fuel vouchers—is that enough to cover the extra cost of BS-VI or EV trucks? For a truck owner running 10,000 km a month, fuel costs are Rs 60,000+; this is just 8% subsidy. Needs more robust incentives for mass adoption. 🚚
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