Cabinet Approves ₹5,041 Crore to Phase Out Old Buses, Trucks in Delhi-NCR to Curb Pollution

The Union Cabinet has cleared a ₹5,041 crore vehicle replacement programme to accelerate the transition towards cleaner transportation in Delhi-NCR.  

The initiative seeks to remove older commercial vehicles from roads and encourage the adoption of Bharat Stage-VI (BS-VI) and electric vehicles as part of broader efforts to improve air quality in the region. 

The scheme will be implemented jointly by the Ministry of Road Transport and Highways, NCR Planning Board and the governments of Delhi, Haryana, Uttar Pradesh and Rajasthan. 

Over 2 Lakh Commercial Vehicles Targeted 

The programme covers more than 1.9 lakh trucks and nearly 16,000 buses operating in Delhi-NCR that meet BS-IV or older emission norms. 

According to the government, older BS-I to BS-IV vehicles generate substantially higher emissions compared with BS-VI vehicles, making them a major contributor to pollution levels in the national capital region. 

Information and Broadcasting Minister Ashwini Vaishnaw said transportation accounts for around 40% of particulate emissions in Delhi, with diesel and petrol-powered vehicles being key contributors. 

Incentives To Encourage Fleet Modernisation 

To support vehicle replacement, the government has introduced multiple incentives for eligible owners.  

These include a 5% interest subsidy on vehicle loans, fuel vouchers for five years through oil marketing companies and manufacturer discounts on new vehicle purchases. 

Additionally, state governments participating in the scheme will provide a complete waiver of motor vehicle tax and registration charges for new BS-VI and electric vehicles purchased under the programme. 

Owners purchasing used BS-VI vehicles will be eligible for a 50% concession. These benefits will remain available for a period of 10 years. 

Eligibility and Claim Process 

Vehicle owners can avail benefits by either scrapping their existing vehicles at authorised vehicle scrapping facilities or transferring them to cities outside the National Clean Air Programme (NCAP) network. 

Following disposal of the old vehicle, owners must purchase and register a new or used BS-VI-compliant or electric vehicle within Delhi-NCR to qualify for incentives. 

The scheme is available to owners of active BS-IV and older trucks and buses registered in the region. 

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Conclusion 

The ₹5,041 crore scrappage initiative represents one of the largest clean mobility programmes targeted at commercial vehicles in Delhi-NCR. By incentivising the replacement of older fleets with BS-VI and electric vehicles, the government aims to reduce transport-related emissions and improve air quality across the region. 

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