New Delhi: The Union Cabinet on Wednesday approved a scheme for replacement of old trucks and buses in Delhi-NCR area, a move aimed at reducing air pollution in the region and promoting cleaner mobility.The scheme seeks to incentivise owners of trucks and buses registered in the Delhi-NCR that comply with BS-IV or earlier emission norms to replace them with BS-VI or stricter emission-compliant vehicles or electric vehicles (EVs).According to a statement, the Centre will provide 5 per cent 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.Read More: Tata taps China's Chery for premium EV push, sources sayThe scheme will benefit approximately 2.07 lakh (1.91 lakh trucks and 16,329 buses) owners in Delhi and NCR states, such as Haryana, Rajasthan, and Uttar Pradesh.The total financial outlay on the scheme will be Rs 9,585 crore, including Rs 5,041 crore from the Centre and an estimated Rs 1,601 crore in tax concessions from the states.The decision was taken at a Cabinet meeting chaired by Prime Minister Narendra Modi.The government said 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).Read More: India’s first choice for cars is going second-handIt will be implemented in collaboration with the participating states of Haryana, Rajasthan, Uttar Pradesh and Union Territory of Delhi.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 or 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.The government said that 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.State governments will waive registration fees and grant up to 100 per cent motor vehicle tax concessions for new vehicles and 50 per cent for used vehicles for 10 years.They will also waive pending liabilities on the old vehicles participating in the scheme. Participating Auto OEMs will offer 8 per cent 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 central government benefits will continue for five 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 Aayog, 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 or district magistrates will be tasked with implementing and monitoring the scheme.The statement said that air pollution in the Delhi-NCR remains a severe public health challenge, particularly during winter months.