**Executive Summary**
The Union Cabinet has approved a two-year scheme with a total financial outlay of Rs. 9,585 crore to replace approximately 2.07 lakh old trucks and buses in the Delhi-NCR region with BS-VI or electric vehicles. Funded through the National Capital Region Planning Board (NCRPB), the initiative aims to significantly reduce vehicular emissions and improve air quality. While the enrollment window is two years, the central government benefits will extend for five years from the date of new vehicle registration.
**Key Points / Main Content**
* **Financial and Administrative Framework**
* Total budget of Rs. 9,585 crore, including Rs. 5,041 crore from the Central Government and Rs. 1,601 crore in state tax concessions.
* Jointly implemented by the Ministry of Road Transport and Highways (MoRTH) and the Ministry of Petroleum and Natural Gas (MoPNG).
* Covers the states/UTs of Delhi, Haryana, Rajasthan, and Uttar Pradesh.
* Implementation and monitoring will be managed via a fully digital integrated portal.
* **Vehicle Eligibility and Replacement Rules**
* Targets trucks and buses registered in Delhi-NCR that are BS-IV or older; government vehicles are excluded.
* BS-III or older vehicles must be scrapped at Registered Vehicle Scrapping Facilities.
* BS-IV vehicles must be either scrapped or sold outside the NCR in non-NCAP cities/towns.
* Replacements must be BS-VI compliant or electric vehicles (EVs).
* Specific Delhi mandates: Light Goods Vehicles must be electric, and buses must be either BS-VI CNG or electric.
* **Financial Incentives**
* **Central Government:** 5% interest subvention on loans for five years, monthly fuel vouchers up to Rs. 4,800, and lump-sum benefits for EV purchases.
* **State Governments:** Waiver of registration fees, 100% motor vehicle tax concessions for new vehicles (50% for used) for 10 years, and waiver of pending liabilities on old vehicles.
* **Auto OEMs:** Participating manufacturers will offer an 8% discount on ex-showroom prices.
* **Governance and Oversight**
* An Empowered Committee chaired by the Cabinet Secretary will monitor the scheme.
* Implementation at the local level is the responsibility of District Collectors and District Magistrates.
**Impact Analysis**
**Truck and Bus Owners**
**Impact:** Owners of approximately 1.91 lakh trucks and 16,329 buses can modernize their fleets with significant financial support, including interest subsidies, tax waivers, and fuel vouchers.
**Action Required:** Must scrap or sell old vehicles according to emission norms and register new BS-VI or electric vehicles through the digital portal to claim benefits.
**State Governments (Delhi, Haryana, Rajasthan, and Uttar Pradesh)**
**Impact:** These states will provide an estimated Rs. 1,601 crore in tax concessions and fee waivers to support regional air quality goals.
**Action Required:** Must waive registration fees, provide motor vehicle tax concessions for 10 years, and waive pending liabilities on participating old vehicles.
**Auto OEMs (Original Equipment Manufacturers)**
**Impact:** Manufacturers will see increased demand for BS-VI and electric commercial vehicles.
**Action Required:** Must offer a mandatory 8% discount on ex-showroom prices for vehicles purchased under the scheme.
**District Collectors/District Magistrates**
**Impact:** These officials are designated as the primary local authorities for the scheme.
**Action Required:** Responsible for the direct implementation and monitoring of the scheme at the district level.
Key Entities Referenced
Scheme for support to NCRPB for replacement of old trucks and buses in Delhi-NCR area: A two-year government initiative aimed at reducing air pollution by incentivizing the replacement of BS-IV or older heavy vehicles with BS-VI compliant or electric vehicles.
National Capital Region Planning Board (NCRPB): The statutory body under the Ministry of Housing and Urban Affairs that provides funding and administrative support for the vehicle replacement scheme.
Delhi-NCR (Delhi, Haryana, Rajasthan, and Uttar Pradesh): The specific geographical region where the scheme is implemented and where eligible vehicles must be registered.
BS-VI emission norms: The mandatory cleaner emission standards that new replacement vehicles must meet to qualify for financial incentives and tax concessions.
Empowered Committee: A high-level monitoring body chaired by the Cabinet Secretary, responsible for overseeing the digital implementation and outcomes of the scheme.
Cabinet
Cabinet approves Scheme for support to NCRPB
for replacement of old trucks and buses in Delhi-
NCR area
प्रव तथ: 03 JUN 2026 3:17PM 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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