The Union Cabinet has approved a two-year scheme to support the replacement of old trucks and buses in the Delhi-NCR region, aiming to reduce air pollution and promote cleaner mobility.
The scheme will be funded through the National Capital Region Planning Board under the Ministry of Housing and Urban Affairs. It will be implemented by the Ministry of Road Transport and Highways and the Ministry of Petroleum and Natural Gas, in collaboration with Delhi, Haryana, Rajasthan and Uttar Pradesh.
The scheme has a total financial outlay of ₹9,585 crore, including ₹5,041 crore from the central government and an estimated ₹1,601 crore in tax concessions from the participating states.
It will incentivise owners of trucks and buses registered in Delhi-NCR that comply with BS-IV or earlier emission norms to replace them with BS-VI or stricter emission-compliant vehicles, or electric vehicles.
The Cabinet said the scheme is expected to benefit around 2.07 lakh vehicle owners in Delhi-NCR, including owners of 1.91 lakh trucks and 16,329 buses.
For BS-III or older vehicles, scrapping at Registered Vehicle Scrapping Facilities will be mandatory. BS-IV vehicles may either be scrapped or sold outside NCR in non-NCAP cities and towns.
Owners will then have to purchase and register a BS-VI or stricter emission-compliant vehicle, or an electric vehicle, within NCR.
In Delhi, Light Goods Vehicles purchased under the scheme must be electric, while buses must be BS-VI CNG or electric only. Government vehicles have been excluded from the scheme.
The Centre will provide 5 per cent interest subvention on loans for 5 years, monthly fuel vouchers worth up to ₹4,800 depending on vehicle category, and lump-sum benefits for electric vehicle purchases or Certificate of Deposit trading.
State governments will waive registration fees and provide up to 100 per cent motor vehicle tax concessions for new vehicles and 50 per cent concessions for used vehicles for 10 years. They will also waive pending liabilities on old vehicles participating in the scheme.
Participating automobile manufacturers will offer 8 per cent discounts on ex-showroom prices.
The government said implementation will be fully digital through an integrated portal, allowing real-time eligibility checks, automated interest subvention claims, monthly fuel voucher credits and monitoring of pollution reduction outcomes.
Central government benefits will continue for 5 years from the date of registration of the new vehicle, extending the impact beyond the two-year enrolment window.
The scheme will be monitored by an Empowered Committee chaired by the Cabinet Secretary. The committee will include the CEO of NITI Aayog, secretaries of the Ministry of Housing and Urban Affairs, Ministry of Road Transport and Highways, Ministry of Petroleum and Natural Gas, Department of Financial Services, chief secretaries of Delhi-NCR states and the Member Secretary of NCRPB as member convenor.
At the district level, District Collectors and District Magistrates will implement and monitor the scheme.
The Cabinet noted that air pollution in Delhi-NCR remains a severe public health challenge, especially during winter months. Citing a 2018 source apportionment report by the Automotive Research Association of India and The Energy and Resources Institute, the release said the transport sector contributes 14 per cent of PM2.5, 40 per cent of carbon monoxide and 63 per cent of nitrogen oxide emissions in Delhi-NCR.
Within the transport sector, trucks and buses account for 36 per cent of PM2.5 emissions despite forming only 3 per cent of the total fleet.
The release said a single pre-BS heavy-duty vehicle emits as much as 14 BS-VI compliant vehicles, while even a BS-IV vehicle emits 2.7 times more than a BS-VI vehicle.
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