Staff Writer
New Delhi: The Union Cabinet on Wednesday approved a Rs 9,585-crore scheme aimed at replacing over 2 lakh old trucks and buses in the Delhi-NCR region, in a major push to curb vehicular pollution and accelerate adoption of cleaner transport technologies.
The two-year scheme, to be funded through the National Capital Region Planning Board (NCRPB), will cover around 2.07 lakh commercial vehicles, including 1.91 lakh trucks and 16,329 buses, registered across 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 estimated at Rs 1,601 crore.
The scheme seeks to incentivise owners of BS-IV and older commercial vehicles to replace them with BS-VI or stricter emission-compliant vehicles, or electric vehicles (EVs). For BS-III and older vehicles, scrapping at registered vehicle scrapping facilities will be mandatory, while BS-IV vehicles can either be scrapped or sold outside the NCR in non-NCAP cities and towns.
According to the government, the transport sector contributes 14 per cent of PM2.5 emissions, 40 per cent of carbon monoxide emissions and 63 per cent of nitrogen oxide emissions in the Delhi-NCR region. Trucks and buses account for 36 per cent of PM2.5 emissions despite constituting only about 3 per cent of the total vehicle fleet.
The government said a single pre-BS heavy-duty vehicle emits pollution equivalent to 14 BS-VI compliant vehicles, while a BS-IV vehicle emits 2.7 times more than its BS-VI counterpart.
Under the scheme, the Centre will provide a 5 per cent interest subvention on vehicle loans for five years, monthly fuel vouchers of up to Rs 4,800 depending on vehicle category, and lump-sum incentives for electric vehicle purchases or Certificate of Deposit trading.
Participating states will waive registration fees and offer up to 100 per cent motor vehicle tax concessions on new vehicles and 50 per cent concessions on used vehicles for a period of 10 years. Pending liabilities on old vehicles enrolled under the scheme will also be waived.
Automobile manufacturers participating in the programme will provide discounts of 8 per cent on the ex-showroom price of new vehicles.
Commenting on the development, Tata Motors Managing Director and CEO Girish Wagh said the initiative would accelerate fleet modernisation and cleaner mobility in the Delhi-NCR region. “The approval of this scheme is a positive step towards accelerating fleet modernisation and cleaner mobility in the Delhi-NCR region. Aligned with our commitment to make cargo and passenger transportation greener and more efficient, we are well positioned to support this transition through our expansive portfolio of BS-VI and zero-emission commercial vehicles, and our nationwide network of Re.Wi.Re registered vehicle scrapping facilities. We look forward to studying the finer details of the notification to further align our efforts towards building a more sustainable and modern commercial vehicle ecosystem.”
VE Commercial Vehicles Managing Director and CEO B. Srinivas termed the scheme a significant step towards fleet modernisation and cleaner transportation.
“We applaud the Government for approving the vehicle replacement scheme for Delhi-NCR. This is a significant step towards accelerating fleet modernization while addressing one of the region’s most pressing environmental challenges.
As India progresses towards its Net Zero 2070 ambitions, such initiatives demonstrate how policy, industry and technology can come together to drive sustainable mobility.
At VECV we believe this will not only support cleaner transportation in Delhi-NCR but also serve as a model for fleet renewal and modernisation across the country during its Amrit Kaal.
We are committed to supporting our customers through this transition with a wide range of Eicher and Volvo trucks and buses offering fuel options covering electrics, CNG, LNG and clean BSVI diesel.”
The scheme will be implemented digitally through an integrated portal enabling eligibility verification, incentive disbursal and monitoring of pollution reduction outcomes. Benefits from the central government will continue for five years from the date of registration of the replacement vehicle.
