**Executive Summary**
The Union Cabinet has approved a two-year, Rs. 9,585 crore scheme to mitigate air pollution in the Delhi-NCR region by replacing approximately 2.07 lakh old trucks and buses with BS-VI or electric vehicles. The initiative involves the central government, participating states (Delhi, Haryana, Rajasthan, and Uttar Pradesh), and auto OEMs to provide financial incentives, tax concessions, and discounts. Implementation will be managed through a digital portal, with benefits for participants extending up to five years from the date of vehicle registration.
**Key Points / Main Content**
**Eligibility and Vehicle Disposal**
* **Target Fleet:** Owners of trucks and buses registered in Delhi-NCR that comply with BS-IV or earlier emission norms.
* **Mandatory Scrapping:** BS-III or older vehicles must be scrapped at Registered Vehicle Scrapping Facilities.
* **BS-IV Disposal:** Owners may scrap BS-IV vehicles or sell them outside the NCR in non-NCAP cities/towns.
* **Exclusions:** Government-owned vehicles are not eligible for the scheme.
**New Vehicle Requirements**
* **Standard Requirement:** Replacements must be BS-VI (or stricter) emission-compliant vehicles or electric vehicles (EVs).
* **Delhi Specifics:** In Delhi, Light Goods Vehicles must be electric, and buses must be either BS-VI CNG or electric.
**Financial Incentives and Support**
* **Central Government:** Provides a 5% interest subvention on loans for five years and monthly fuel vouchers worth up to Rs. 4,800.
* **Tax Concessions:** State governments will waive registration fees and provide up to 100% motor vehicle tax concessions for new vehicles (50% for used) for 10 years.
* **OEM Participation:** Auto manufacturers will offer an 8% discount on ex-showroom prices.
* **Debt Relief:** Participating states will waive pending liabilities on old vehicles entering the scheme.
**Implementation and Monitoring**
* **Digital Integration:** A fully digital portal will handle eligibility checks, interest subvention claims, and monitoring of pollution reduction.
* **Oversight:** An Empowered Committee chaired by the Cabinet Secretary will monitor the scheme, while District Collectors/Magistrates will manage implementation at the district level.
**Impact Analysis**
**Vehicle Owners (Trucks and Buses)**
**Impact**
They receive significant financial relief to modernize their fleets, including lower loan interest, fuel subsidies, and reduced tax burdens.
**Action Required**
Must scrap or sell old vehicles according to guidelines and register new, compliant vehicles through the integrated digital portal.
**State Governments (Delhi, Haryana, Rajasthan, Uttar Pradesh)**
**Impact**
Responsible for a combined financial contribution of Rs. 1,601 crore in tax concessions and the loss of registration fee revenue.
**Action Required**
Must implement tax waivers, waive pending liabilities on old vehicles, and oversee district-level monitoring through District Magistrates.
**Auto OEMs (Original Equipment Manufacturers)**
**Impact**
Likely to see a surge in demand for BS-VI and electric commercial vehicles.
**Action Required**
Must provide a mandatory 8% discount on the ex-showroom price for vehicles purchased under this scheme.
**National Capital Region Planning Board (NCRPB)**
**Impact**
Serves as the primary funding and coordinating body for the scheme under MoHUA.
**Action Required**
The Member Secretary of the NCRPB must act as the member convenor for the Empowered Committee to ensure project milestones are met.
Key Entities Referenced
Scheme for support to NCRPB for replacement of old trucks and buses in Delhi-NCR area: A landmark two-year initiative to reduce air pollution by incentivizing the replacement of BS-IV or older trucks and buses with BS-VI or electric vehicles.
Delhi-NCR: The specific geographic region encompassing Delhi, Haryana, Rajasthan, and Uttar Pradesh where the scheme is implemented and vehicles must be registered.
National Capital Region Planning Board (NCRPB): The primary body under the Ministry of Housing and Urban Affairs responsible for funding and overseeing the scheme's implementation.
BS-VI Emission Norms: The advanced cleaner engine standards that replacement vehicles must meet to qualify for incentives under the policy.
Empowered Committee: A high-level monitoring body chaired by the Cabinet Secretary to oversee the digital implementation and pollution reduction outcomes of the scheme.
Ministry of Housing & Urban Affairs
Cabinet approves Scheme for support to NCRPB
for replacement of old trucks and buses in Delhi-
NCR area
प्रव तथ: 03 JUN 2026 3:18PM by National
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved a landmark two-year
scheme aimed at reducing air pollution in the Delhi–NCR region and promoting cleaner mobility. The
scheme will be funded through the National Capital Region Planning Board (NCRPB) under the Ministry
of Housing and Urban Affairs (MoHUA) and implemented by the Ministry of Road Transport and
Highways (MoRTH) and Ministry of Petroleum and Natural Gas (MoPNG). It will be implemented in
collaboration with the participating States and Union Territories of Delhi, Haryana, Rajasthan, and Uttar
Pradesh.
With a total financial outlay of Rs.9,585 crore, including Rs.5,041 crore from the Central Government and
an estimated Rs.1,601 crore in tax concessions from the participating States, the scheme seeks to
incentivize owners of trucks and buses registered in the Delhi–NCR region that comply with BS-IV or
earlier emission norms to replace them with BS-VI or stricter emission-compliant vehicles, or electric
vehicles (EVs). By accelerating the transition to cleaner transport technologies, the scheme is expected to
significantly reduce vehicular emissions and contribute to improved air quality across the Delhi–NCR
region.
Air pollution in the Delhi-NCR remains a severe public health challenge, particularly during winter
months. As per the report on “Source Apportionment of Particulate Matter (PM 2.5 and PM 10) in the
NCR” prepared by the Automotive Research Association of India (ARAI) and The Energy and Resources
Institute (TERI), published in August 2018, the transport sector contributes 14% of PM 2.5, 40% of
Carbon Monoxide (CO), and 63% of Nitrogen Oxide (NOx) emissions in the Delhi-NCR. Within the
transport sector, trucks and buses account for 36% of PM 2.5 emissions with only 3% of the total fleet. It
is estimated that a single Pre-BS heavy-duty vehicle emits as much as 14 BS-VI compliant vehicles. Even
a BS-IV vehicle emits 2.7 times more than a BS-VI counterpart. Hence, the newer fleet is expected to
reduce the vehicular pollution substantially.
The scheme will benefit approximately 2.07 lakh (1.91 lakh trucks and 16,329 buses) owners in Delhi-
NCR (comprising Delhi, Haryana, Rajasthan, and Uttar Pradesh).
For BS-III or older vehicles, scrapping at Registered Vehicle Scrapping Facilities is mandatory, while
BS-IV vehicles may either be scrapped or sold outside NCR in non-NCAP cities / towns. Owners must
then purchase and register a BS-VI or stricter norms compliant or electric vehicle within NCR. However,
In Delhi, Light Goods Vehicles purchased under the scheme must be electric, while buses must be BS-VI
CNG or electric only. Government vehicles are excluded from the scheme.
Benefits under the scheme:The Centre will provide 5% interest subvention on loans for five years, monthly fuel vouchers worth up to
Rs.4,800 depending on vehicle category, and lump-sum benefits for EV purchases or Certificate of
Deposit trading.
State governments will waive registration fees and grant up to 100% motor vehicle tax concessions for
new vehicles and 50% for used vehicles for 10 years. State Government will also waive of pending
liabilities on the old vehicles participating in the scheme.
Participating Auto OEMs will offer 8% discounts on ex-showroom prices.
Implementation will be fully digital through an integrated portal, which will enable real-time eligibility
checks, automated interest subvention claims, monthly fuel voucher credits, and monitoring of pollution
reduction outcomes. The benefits by central government will continue for 5 years from the date of
registration of the new vehicle, ensuring sustained impact beyond the two-year enrolment window.
The scheme will be monitored by an Empowered Committee, chaired by Cabinet Secretary with CEO,
Niti Ayog, Secretaries of MoHUA, MoRT&H, MoPNG, DFS, Chief Secretaries of states in Delhi NCR as
members, and Member Secretary of NCRPB being the member convenor. At the district level, District
Collectors/ District Magistrates will be implementing and monitoring the scheme.
***
MJPS
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