Delhi-NCR to Replace 2.07 Lakh Old Trucks and Buses Under A New ₹9,585 Crore Scheme

Written by: Aayushi ChaubeyUpdated on: 4 Jun 2026, 4:26 pm IST
The Centre has approved a ₹9,585 crore scheme to replace 2.07 lakh old trucks and buses in Delhi-NCR with cleaner BS-VI and electric vehicles, offering incentives including loan subsidies, tax benefits, and fuel vouchers.
Delhi-NCR
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The Union Cabinet has approved a ₹9,585 crore scheme aimed at replacing around 2.07 lakh ageing trucks and buses across Delhi-NCR with cleaner BS-VI and electric vehicles. The initiative is part of the government's broader strategy to curb air pollution in the National Capital Region while accelerating the transition to cleaner transportation.

The programme targets BS-IV and older commercial vehicles, which are among the largest contributors to vehicular pollution despite forming a small portion of the region's vehicle fleet.

2.07 Lakh Old Commercial Vehicles Set for Replacement

Under the newly approved scheme, approximately 2.07 lakh trucks and buses will be phased out and replaced with cleaner alternatives. The government has identified these vehicles as a major source of harmful emissions in Delhi-NCR.

According to official estimates, heavy-duty vehicles account for only about 3% of the total vehicle population in the region but contribute nearly 36% of transport-related PM2.5 emissions. Studies have also shown that a pre-BS heavy-duty vehicle can emit pollution equivalent to as many as 14 BS-VI vehicles.

The large-scale replacement programme is expected to significantly reduce particulate matter, nitrogen oxide, and carbon monoxide emissions.

Incentives Announced for Vehicle Owners

To encourage faster adoption, the government has rolled out a comprehensive incentive package for owners replacing older vehicles.

The Central Government will provide a 5% interest subvention on vehicle loans for five years, along with monthly fuel vouchers worth up to ₹4,800. Buyers opting for electric vehicles will also be eligible for additional lump-sum incentives.

State governments will waive registration fees and offer motor vehicle tax concessions of up to 100% for new vehicles and 50% for used vehicles. In addition, automobile manufacturers will provide discounts of up to 8% on the ex-showroom price of eligible vehicles.

Digital Monitoring and Implementation

The scheme will be operational for two years and will be managed through a dedicated digital platform for eligibility verification, incentive distribution, and emissions monitoring. An Empowered Committee headed by the Cabinet Secretary will oversee implementation across the NCR region.

Read more: RBI Gold Reserves Remain Steady at 880.52 Tonnes, Central Bank Denies Sale Reports .

Conclusion

The replacement of 2.07 lakh old trucks and buses under the ₹9,585 crore scheme marks one of the largest clean transportation initiatives in Delhi-NCR. By encouraging the adoption of BS-VI and electric vehicles through financial incentives, the government aims to improve air quality, modernise the commercial vehicle fleet, and reduce pollution-related health risks in the region.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Published on: Jun 4, 2026, 10:53 AM IST

Aayushi Chaubey

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