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Cabinet approves Rs 9,585 crore green scheme to replace old trucks and buses in Delhi-NCR

by Pratik Tripathi
June 3, 2026
in Technology
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Cabinet approves Rs 9,585 crore green scheme to replace old trucks and buses in Delhi-NCR
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New Delhi, June 3 (IANS). The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved a key two-year plan to reduce air pollution and promote clean transportation in the Delhi-NCR region. In this, a green scheme of Rs 9,585 crore was approved to replace old trucks and buses in Delhi-NCR.

The central government will contribute Rs 5,041 crore to the scheme with a total cost of Rs 9,585 crore, while tax concessions worth about Rs 1,601 crore will be provided by the participating states, an official statement said on Wednesday.

The scheme aims to incentivize truck and bus owners registered in Delhi-NCR whose vehicles comply with BS-IV or older emission standards. Such vehicle owners will be encouraged to replace their old vehicles with vehicles having BS-VI or better emission standards or electric vehicles (EVs).

The scheme will be funded by the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs (MoHUA). The responsibility of its implementation will be of the Ministry of Road Transport and Highways (MoRTH) and Ministry of Petroleum and Natural Gas (MOPNG).

The statement said that the scheme will be implemented in collaboration with the states and union territories of the Delhi-NCR region, including Delhi, Haryana, Rajasthan and Uttar Pradesh.

According to the statement, about 2.07 lakh vehicle owners will benefit from this scheme, which includes about 1.91 lakh trucks and 16,329 buses.

Under the scheme, it will be mandatory to get BS-III or older vehicles scrapped in registered vehicle scrapping centres.

At the same time, BS-IV vehicles can either be scrapped or sold outside the NCR in cities and towns that are not covered under the National Clean Air Program (NCAP).

After this, vehicle owners will have to purchase and register a new BS-VI or better standards or electric vehicle within NCR. Light goods vehicles purchased under this scheme in Delhi should be only electric. At the same time, only BS-VI CNG or electric models will be valid for buses. Government vehicles have been kept out of the scope of this scheme.

The statement further said that under this scheme, the central government will provide 5 percent interest subsidy for five years on loans taken to purchase new vehicles. Apart from this, fuel vouchers worth up to Rs 4,800 will also be given every month according to the vehicle category.

At the same time, lump sum benefit will also be provided on purchasing electric vehicle or trading deposit certificates.

State governments will waive registration fees for new vehicles. Apart from this, there will be up to 100 percent tax exemption on motor vehicle tax for 10 years on new vehicles and up to 50 percent tax exemption on old vehicles. Additionally, outstanding liabilities on old vehicles included in the scheme will also be waived off.

Automobile companies (OEMs) participating in the scheme will offer a discount of up to 8 percent on the ex-showroom price of new vehicles. This will make it easier for vehicle owners to replace their old vehicles. This scheme will be operated completely through digital medium.

According to the statement, all processes like eligibility check, interest subsidy claims, monthly fuel vouchers and pollution reduction monitoring will be conducted in real-time through an integrated online portal.

The benefits provided by the Central Government will continue for five years from the date of registration of the new vehicle, making the scheme effective even after the two-year enrollment period.

The government believes that rapid adoption of clean transportation technologies will significantly reduce vehicular pollution and improve the air quality of Delhi-NCR.

It is noteworthy that air pollution in Delhi-NCR has long been a serious public health challenge, especially during the winter season.

–IANS

DBP

Tags: BusinessIANSNationalScience Technology

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