The Union Cabinet has approved a two-year scheme aimed at reducing air pollution in the Delhi-NCR region by incentivizing the replacement of older trucks and buses with cleaner vehicles. The initiative will be implemented by the Ministry of Road Transport and Highways (MoRTH), Ministry of Petroleum and Natural Gas (MoPNG), and the National Capital Region Planning Board (NCRPB), in collaboration with the states and Union Territories of Delhi, Haryana, Rajasthan, and Uttar Pradesh.

With a total budget of ₹9,585 crore, including ₹5,041 crore from the central government and ₹1,601 crore in state tax concessions, the program focuses on vehicles registered under BS-IV or earlier emission standards. Owners will be encouraged to transition to BS-VI or stricter emission-compliant vehicles, or electric vehicles (EVs). According to the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI), trucks and buses account for 36% of PM 2.5 emissions in the region despite comprising just 3% of the total fleet. Upgrading these vehicles is expected to significantly reduce pollutants, including PM 2.5, Carbon Monoxide, and Nitrogen Oxides.

Financial Incentives and Digital Monitoring to Support Transition

The scheme offers multiple benefits: five-year 5% interest subvention on loans, monthly fuel vouchers up to ₹4,800, and upfront incentives for EV purchases. State governments will waive registration fees, grant up to 100% motor vehicle tax concessions for new vehicles, and 50% for used vehicles over 10 years. Participating auto manufacturers will provide an additional 8% discount on ex-showroom prices. Implementation will be fully digital, allowing real-time verification, automated subsidy disbursement, and monitoring of pollution reduction outcomes.

Governance and Expected Impact

The program will benefit approximately 2.07 lakh vehicles, including 1.91 lakh trucks and 16,329 buses. Vehicles older than BS-III must be scrapped, while BS-IV vehicles may be sold outside NCR or scrapped. In Delhi, light goods vehicles must be electric, and buses must comply with BS-VI CNG or electric standards. Oversight will be managed by an Empowered Committee chaired by the Cabinet Secretary, with district-level monitoring by District Collectors and Magistrates. Experts predict the new fleet could reduce vehicular emissions by a significant margin, contributing to improved air quality and public health in the region.