Olectra Greentech Limited and Montra Electric have joined the government’s scheme for replacing old trucks and buses in the Delhi-NCR region, expanding industry participation in the fleet-modernisation programme.
According to a statement by the Ministry of Road Transport and Highways, memoranda of understanding under the PARIVARTAN scheme were signed between the ministry and Olectra Greentech Limited on Monday, 6 July.
Montra Electric joined the scheme through its business units IPLTECH Electric Private Limited and TIVOLT Electric Vehicles Private Limited.
Under the agreement, participating original equipment manufacturers will provide an 8% discount on the ex-showroom price of eligible trucks and buses purchased under the scheme.
For electric vehicles, the discount will be capped at the discount applicable to an internal combustion engine vehicle of the equivalent gross vehicle weight category.
In addition to the OEM discount, the Central Government will provide 5% interest subvention and fixed monthly fuel vouchers for five years.
Participating state governments will provide up to 100% concession on motor vehicle tax for ten years and waiver of registration fees for eligible beneficiaries under the scheme.
The scheme is aimed at replacing old trucks and buses in Delhi-NCR with cleaner vehicles.
The Cabinet had approved the scheme for support to the National Capital Region Planning Board for replacement of old trucks and buses in Delhi-NCR on 3 June.
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According to the Cabinet release, the scheme is expected to benefit about 2.07 lakh vehicle owners in Delhi-NCR, including around 1.91 lakh truck owners and 16,329 bus owners.
The Delhi-NCR region under the scheme covers Delhi, Haryana, Rajasthan and Uttar Pradesh.
For BS-III or older vehicles, scrapping at Registered Vehicle Scrapping Facilities is mandatory.
BS-IV vehicles may either be scrapped or sold outside NCR in non-NCAP cities or towns.
Vehicle owners must then purchase and register a BS-VI or stricter norms-compliant vehicle, or an electric vehicle, within NCR.
The government vehicles are excluded from the scheme.
The transport ministry said nine other OEMs had earlier signed MoUs with the government for implementation of the scheme.
These include Ashok Leyland, Switch Mobility, Tata Motors, Mahindra and Mahindra, SML Mahindra, Daimler India Commercial Vehicles, Eicher Trucks and Buses, Force Motors and Pinnacle Mobility Solutions.
With Olectra Greentech and Montra Electric joining, OEMs that have signed MoUs now account for more than 95% market share in trucks and buses, according to the ministry.
The wider participation is expected to give the scheme broader coverage across the commercial vehicle market and support faster replacement of older vehicles in Delhi-NCR.
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