New Delhi: The Union Cabinet, chaired by Prime Minister Narendra modi has approved a major two-year initiative aimed at reducing air pollution and promoting cleaner transportation across the Delhi-NCR region. The scheme, with a total financial outlay of ₹9,585 crore, will be funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs. It will be implemented jointly by the Ministry of Road Transport and Highways and the Ministry of Petroleum and Natural Gas, in coordination with the governments of Delhi, Haryana, Rajasthan, and Uttar Pradesh.
Under the programme, owners of approximately 2.07 lakh commercial vehicles—including 1.91 lakh trucks and 16,329 buses registered in Delhi-NCR—will be encouraged to replace older vehicles complying with BS-IV or earlier emission standards with BS-VI-compliant vehicles or electric vehicles (EVs).
Tackling Vehicular Pollution
The initiative is designed to address the severe air pollution challenges faced by Delhi-NCR, particularly during winter. According to studies by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI), the transport sector contributes significantly to pollution in the region, accounting for:
- 14% of PM2.5 emissions
- 40% of Carbon Monoxide (CO) emissions
- 63% of Nitrogen Oxide (NOx) emissions
Although trucks and buses make up only 3% of the vehicle fleet, they contribute 36% of transport-related PM2.5 emissions. A pre-BS vehicle emits pollution equivalent to about 14 BS-VI vehicles, while a BS-IV vehicle emits nearly 2.7 times more pollution than a BS-VI vehicle.
Eligibility and Vehicle Replacement Rules
Owners of BS-III and older vehicles must scrap their vehicles at Registered Vehicle Scrapping Facilities. BS-IV vehicles can either be scrapped or sold outside the NCR in non-National Clean Air Programme (NCAP) cities and towns.
To receive benefits under the scheme, vehicle owners must purchase and register a new BS-VI-compliant, stricter-emission-compliant, or electric vehicle within the NCR region.
Special provisions for Delhi include:
- Light Goods Vehicles purchased under the scheme must be electric.
- Buses must be either BS-VI CNG or electric.
- Government-owned vehicles are not eligible.
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Incentives for Vehicle Owners
The Central Government will provide:
- 5% interest subvention on vehicle loans for five years.
- Monthly fuel vouchers worth up to ₹4,800, depending on vehicle category.
- One-time incentives for electric vehicle purchases or Certificate of Deposit trading.
Participating state governments will:
- Waive registration fees.
- Offer up to 100% motor vehicle tax exemption for new vehicles and 50% tax concession for used vehicles for ten years.
- Waive pending liabilities on old vehicles participating in the scheme.
In addition, participating automobile manufacturers will provide 8% discounts on ex-showroom prices of eligible vehicles.
Digital Implementation and Monitoring
The scheme will be implemented through a fully digital platform that will facilitate eligibility verification, processing of interest subvention claims, fuel voucher distribution, and monitoring of pollution reduction outcomes. Benefits provided by the Central Government will continue for five years from the registration date of the new vehicle, extending support beyond the scheme’s two-year enrollment period.
An Empowered Committee headed by the Cabinet Secretary will oversee implementation. The committee will include the CEO of NITI Aayog, senior officials from relevant ministries, Chief Secretaries of NCR states, and the Member Secretary of NCRPB. At the district level, District Collectors and District Magistrates will be responsible for implementation and monitoring. The scheme is expected to accelerate the transition to cleaner transportation technologies, significantly reduce vehicular emissions, and contribute to improved air quality across the Delhi-NCR region.
