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In a major initiative to reduce air pollution in the Delhi-NCR region, the Central Government has approved a Rs 9,585 crore vehicle replacement scheme aimed at phasing out BS-IV and older trucks and buses and encouraging the adoption of BS-VI and electric vehicles.
Out of the total financial outlay, Rs 5,041 crore will be funded by the Centre, while participating state governments are expected to provide approximately Rs 1,601 crore through tax concessions. Owners of BS-IV and older commercial vehicles registered in Delhi-NCR will be eligible for incentives if they replace their vehicles with BS-VI-compliant or electric vehicles registered within the region.
The scheme will be jointly implemented by the Ministry of Road Transport and Highways (MoRTH), the National Capital Region Planning Board (NCRPB), and the governments of Delhi, Haryana, Uttar Pradesh and Rajasthan. A fully digital platform will manage eligibility verification, interest subvention claims, fuel voucher disbursements and pollution reduction monitoring.
According to the government, older diesel trucks and buses remain major contributors to air pollution in the National Capital Region. Vehicles complying with BS-I to BS-IV standards emit around 67% more carbon monoxide and 97% more particulate matter than BS-VI vehicles.
To encourage fleet modernisation, the scheme offers a comprehensive package of benefits, including a 5% interest subvention on vehicle loans for five years, monthly fuel vouchers worth up to Rs 4,800 depending on vehicle category, and lump-sum incentives for electric vehicle purchases or Certificate of Deposit trading. Participating vehicle manufacturers will also provide discounts of up to 8% on ex-showroom prices.
Under the scheme, BS-III and older vehicles must be scrapped through authorised vehicle scrapping facilities. Owners of BS-IV vehicles may either scrap their vehicles or sell them outside the NCR in non-NCAP cities before purchasing a replacement vehicle.
In Delhi, light commercial vehicles purchased under the programme must be electric, while buses will qualify only if they are powered by BS-VI CNG or electric drivetrains. Government-owned vehicles are excluded from the scheme.
The Centre has also urged participating states to provide a 100% exemption on motor vehicle tax and waive registration fees for replacement vehicles. Used BS-VI vehicles purchased under the programme will receive a 50% tax concession, with benefits remaining valid for up to 10 years.
Union Information and Broadcasting Minister Ashwini Vaishnaw said the scheme will target more than 1.9 lakh trucks and around 16,000 buses operating in Delhi-NCR under BS-IV and older emission categories.
The government believes the initiative will significantly reduce vehicular emissions, accelerate the adoption of electric buses and trucks, and support the modernisation of the region's commercial vehicle fleet.
