The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a major two-year scheme to combat air pollution in the Delhi-NCR region and accelerate the shift towards cleaner mobility. The scheme will be funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs (MoHUA).
It will be implemented by the Ministry of Road Transport and Highways (MoRTH) and the Ministry of Petroleum and Natural Gas (MoPNG), in collaboration with the governments of Delhi, Haryana, Rajasthan, and Uttar Pradesh.
Information and Broadcasting Minister Ashwini Vaishnaw, while briefing the media, said the scheme aims to incentivise owners of trucks and buses registered in Delhi-NCR that meet only BS-IV or earlier emission norms to replace them with BS-VI or cleaner vehicles, including electric vehicles (EVs).
“The scheme is expected to significantly reduce vehicular emissions and contribute to improved air quality across the Delhi-NCR region,” Vaishnaw said.
With a total financial outlay of Rs 9,585 crore, including Rs 5,041 crore from the Central Government and Rs 1,601 crore in tax concessions from participating states, the initiative seeks to fast-track the transition to cleaner transport technologies in the national capital region.
Air pollution in the Delhi-NCR remains a severe public health challenge, particularly during the winter months.
As per the report ‘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.
An official release said that the scheme will benefit approximately 2.07 lakh (1.91 lakh trucks and 16,329 buses) 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 and 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% 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. State Government will also waive of pending liabilities on the old vehicles participating in the scheme.
Participating Auto OEMs will offer 8% discounts on ex-showroom prices.
The official release stated that the entire scheme will be implemented through a fully digital integrated portal. This platform will facilitate real-time eligibility checks, automated interest subvention claims, monthly fuel voucher credits, and continuous monitoring of pollution reduction outcomes.
Central government benefits will continue for five years from the date of registration of the new vehicle. This ensures sustained impact even beyond the initial two-year enrolment window.
The scheme will be monitored by a high-powered Empowered Committee chaired by the Cabinet Secretary. The committee includes the CEO of NITI Aayog, Secretaries of MoHUA, MoRTH, MoPNG, and DFS, Chief Secretaries of the Delhi-NCR states, with the Member Secretary of NCRPB as the member convenor.
At the district level, District Collectors/District Magistrates will oversee the implementation and monitoring of the scheme.
