New Delhi: The Central Cabinet has approved a major ₹9,585 crore scheme aimed at reducing air pollution in the Delhi-NCR region. The initiative focuses on replacing old, high-emission commercial vehicles with cleaner BS-VI and electric vehicles (EVs), marking one of the largest clean mobility interventions in the region.
The decision is expected to significantly accelerate efforts to improve air quality in the national capital region, which continues to face severe pollution challenges.
Over 2 Lakh Old Trucks and Buses to Be Scrapped and Replaced
Under the approved plan, approximately 2.07 lakh old commercial vehicles, including diesel trucks and buses registered in Delhi-NCR, will be phased out over the next two years.
These include vehicles that meet BS-IV and older emission standards, which are identified as major contributors to air pollution.
- Around 1.9 lakh old trucks will be replaced
- Over 16,000 buses will be upgraded
- Transition will be toward BS-VI or electric vehicles
Officials said the scheme aims to remove high-emission vehicles from NCR roads and replace them with cleaner alternatives.
Strict Shift to Electric and BS-VI Vehicles
The policy introduces strict new vehicle norms for the region:
- All newly purchased light goods vehicles must be electric (EV)
- Only BS-VI CNG or electric buses will be permitted
- Older diesel vehicles will be systematically phased out
According to the government, BS-I to BS-IV vehicles emit significantly higher levels of pollutants, including carbon monoxide (CO) and particulate matter (PM), compared to BS-VI vehicles.
Major Incentive Package for Vehicle Owners
To support the transition, the government has announced a comprehensive incentive structure for vehicle owners:
- 5% interest subsidy on bank loans for new vehicles (up to 5 years)
- Monthly fuel vouchers for 5 years
- 8% direct discount on ex-showroom prices from manufacturers
- Full exemption from registration fees and old dues
- 100% Motor Vehicle tax exemption in participating states
- 50% reduction in registration fees for used BS-VI vehicles
These benefits aim to reduce the financial burden on transport operators shifting to cleaner vehicles.
Scrappage and Registration Rules for Old Vehicles
Vehicle owners of BS-IV and older commercial vehicles registered in Delhi-NCR will need to either:
- Scrap their vehicles at authorized scrapping centres, or
- Sell them in non-NCR cities where older emission norms are still permitted
Only after this process will owners be eligible to purchase and register new or used BS-VI or electric vehicles in Delhi-NCR.
Multi-State Implementation Plan Under Central Oversight
The scheme will be implemented jointly by the Ministry of Road Transport and Highways (MoRTH), NCR Planning Board, and the governments of Delhi, Haryana, Uttar Pradesh, and Rajasthan.
Prime Minister Narendra Modi has emphasized a “whole-of-government approach” to tackle pollution, directing all departments to coordinate efforts under a unified action plan.
Aim: Cleaner Air and Improved Public Health in NCR
The government stated that the initiative is designed to significantly reduce harmful emissions in the region, where older commercial vehicles are among the major sources of pollution.Officials expect the transition to cleaner mobility to improve air quality, reduce health risks, and support India’s broader climate and sustainability goals.
Strong Push Towards Green Mobility Transformation
The ₹9,585 crore scheme is being seen as a landmark step toward modernizing India’s commercial transport sector. By accelerating the shift to electric and BS-VI vehicles, the government aims to create a long-term structural solution to Delhi-NCR’s air pollution crisis.
Read also: Delhi Govt Approves ₹45 Crore for Modernisation of Udyog Nagar Industrial Area in West Delhi
