Mahindra Group companies have joined the Centre’s scheme for replacing old trucks and buses in the Delhi-NCR region, expanding industry participation in the commercial vehicle renewal programme.
The Ministry of Road Transport and Highways on Friday, 19 June, signed a Memorandum of Understanding with Mahindra & Mahindra Ltd and SML Mahindra for implementation of the scheme.
Under the agreement, the companies will offer an 8 percent discount on the ex-showroom price of eligible trucks and buses purchased under the replacement scheme.
For electric vehicles, the discount will be capped at the level applicable to an equivalent internal combustion engine vehicle in the same Gross Vehicle Weight category.
The scheme also includes additional support from the Centre and participating state governments.
Apart from the 8 percent discount offered by original equipment manufacturers, the Central Government will provide 5 percent interest subvention and fixed monthly fuel vouchers for five years.
Read also : Delhi-Jaipur commuters get barrier-less tolling at Daulatpura Toll Plaza on NH-48
Participating state governments will provide up to 100 percent concession on motor vehicle tax for ten years, along with waiver of registration fees for eligible beneficiaries.
The agreement comes days after Ashok Leyland, Switch Mobility and Tata Motors also signed similar MoUs with the government for the scheme.
With Mahindra & Mahindra and SML Mahindra joining the initiative, five companies covering around 75 percent of the truck and bus market are now part of the programme.
The wider industry coverage is expected to support faster replacement of older commercial vehicles in Delhi-NCR, where freight and passenger transport fleets form a major part of road traffic.
The scheme is aimed at encouraging owners of old trucks and buses to shift to newer vehicles by combining manufacturer discounts, lower financing costs, fuel support and state-level tax benefits.
