Why Has The Government Approved This Scheme?
The Union Cabinet has approved a ₹9,585 crore scheme aimed at replacing old trucks and buses across the Delhi-NCR region in a bid to tackle worsening air pollution.
The two-year programme seeks to encourage owners of older commercial vehicles to transition to cleaner BS-VI-compliant or electric vehicles. The initiative will be implemented through the National Capital Region Planning Board (NCRPB) in coordination with the Ministry of Road Transport and Highways, the Ministry of Petroleum and Natural Gas, and the governments of Delhi, Haryana, Rajasthan, and Uttar Pradesh.
The decision comes amid growing concerns over air quality in the National Capital Region, where vehicular emissions remain a major contributor to pollution levels.
How Much Money Has Been Allocated?
The scheme has a total outlay of ₹9,585 crore.
Of this, the central government will contribute ₹5,041 crore, while participating states are expected to provide approximately ₹1,601 crore through tax concessions and related incentives.
The remaining support will come through financing mechanisms and programme implementation measures designed to accelerate vehicle replacement.
Who Will Benefit From The Scheme?
The government estimates that nearly 207,000 vehicle owners across Delhi-NCR could benefit from the programme.
This includes around 191,000 trucks and more than 16,000 buses currently operating in the region.
Commercial vehicle owners who replace older vehicles with BS-VI-compliant or electric alternatives will be eligible for various financial incentives under the scheme.
Which Vehicles Are Covered?
The programme primarily targets BS-IV and older commercial vehicles operating in Delhi-NCR.
BS-III and older vehicles will be required to undergo mandatory scrapping through registered vehicle scrapping facilities.
Meanwhile, BS-IV vehicles can either be scrapped or sold outside the NCR region in non-NCAP cities and towns, subject to applicable regulations.
Why Is Delhi-NCR Focusing On Trucks And Buses?
Heavy commercial vehicles account for a disproportionate share of vehicular pollution despite representing only a small percentage of the total vehicle fleet.
According to a study conducted by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI), trucks and buses contribute 36 per cent of PM2.5 emissions in Delhi-NCR while making up only 3 per cent of the region’s vehicle population.
The study also found that the transport sector contributes 14 per cent of PM2.5 emissions, 40 per cent of carbon monoxide emissions, and 63 per cent of nitrogen oxide emissions across the region.
How Polluting Are Older Vehicles?
The government said a single pre-BS heavy-duty vehicle emits pollution equivalent to approximately 14 BS-VI vehicles.
Similarly, a BS-IV vehicle emits around 2.7 times more pollution than a BS-VI-compliant vehicle.
These figures highlight why policymakers are prioritising the replacement of older commercial fleets as part of broader air quality improvement efforts.
What Incentives Will Vehicle Owners Receive?
The Cabinet has approved a range of incentives to encourage faster adoption of cleaner vehicles.
Vehicle owners will be eligible for a 5 per cent interest subvention on vehicle loans for a period of five years.
In addition, monthly fuel vouchers worth up to ₹4,800 will be provided depending on the category of vehicle being replaced.
The scheme also includes lump-sum incentives for electric vehicle purchases and benefits linked to certificate-of-deposit trading mechanisms.
What Conditions Must Owners Meet?
To receive incentives under the programme, vehicle owners must purchase and register BS-VI-compliant or electric vehicles within the NCR region.
The government hopes this requirement will ensure that cleaner vehicles replace older polluting models operating in Delhi-NCR.
What Are BS-VI Vehicles?
BS-VI, or Bharat Stage VI, represents India’s most stringent vehicle emission standard.
The norms came into force nationwide in April 2020 and replaced BS-IV standards, which had been implemented across the country since 2017.
BS-VI vehicles are designed to emit significantly lower levels of harmful pollutants, including particulate matter, nitrogen oxides, hydrocarbons, and sulphur compounds.
Why Are BS-VI Vehicles Cleaner?
BS-VI standards mandate the use of cleaner fuel containing only 10 parts per million (ppm) sulphur compared to 50 ppm under BS-IV norms.
Automakers have also incorporated advanced technologies such as diesel particulate filters (DPFs), selective catalytic reduction (SCR) systems, and onboard diagnostics that continuously monitor emissions performance.
These technologies help significantly reduce pollution and improve environmental performance compared to older-generation vehicles.
What Could The Scheme Mean For Delhi-NCR?
The vehicle replacement programme is expected to play a key role in reducing vehicular emissions across Delhi-NCR over the coming years.
By accelerating the retirement of older trucks and buses while encouraging adoption of cleaner technologies, the government aims to improve air quality, especially during winter months when pollution levels often reach hazardous levels.
Officials believe the scheme will not only help reduce emissions but also modernise the region’s commercial vehicle fleet and support India’s broader clean mobility goals.
