New Delhi: The Union Cabinet on Tuesday approved a Rs 9,585 crore scheme aimed at replacing older trucks and buses in the Delhi-NCR region with cleaner, less-polluting vehicles in a major push to improve air quality.
The two-year programme, backed by the National Capital Region Planning Board (NCRPB), will encourage owners of BS-IV and older commercial vehicles to switch to BS-VI-compliant or electric vehicles. The scheme will be implemented by the ministries of road transport and highways and petroleum and natural gas in coordination with Delhi, Haryana, Rajasthan and Uttar Pradesh.
Of the total outlay, the Centre will contribute Rs 5,041 crore, while participating states are expected to provide tax concessions worth around Rs 1,601 crore.
According to government estimates, nearly 2.07 lakh vehicle owners, including about 1.91 lakh trucks and over 16,000 buses, are expected to benefit from the initiative.
The government said the transport sector remains a major contributor to air pollution in the NCR, with heavy-duty trucks and buses accounting for a disproportionately high share of particulate emissions despite forming a small percentage of the total vehicle fleet.
Under the scheme, BS-III and older vehicles will have to be scrapped at authorised facilities, while BS-IV vehicles may either be scrapped or sold outside the NCR in non-NCAP towns and cities. Owners will be required to purchase a BS-VI-compliant or electric replacement vehicle and register it within the NCR.
To encourage participation, the Centre will offer interest subsidies on vehicle loans for five years, monthly fuel vouchers and incentives for electric vehicle purchases. State governments will provide registration fee waivers and motor vehicle tax concessions, while automobile manufacturers will offer discounts of up to 8% on ex-showroom prices.
The scheme will be monitored by a high-level committee headed by the Cabinet Secretary and implemented through a fully digital platform to track eligibility, benefits and pollution-reduction outcomes.
