The scheme will cover approximately 1.91 lakh trucks and 16,329 buses currently operating under BS-IV or earlier emission standards.
To reduce air pollution as well as accelerate the adoption of cleaner transport technologies in the Delhi-NCR region, the Centre has approved a ₹9,585-crore vehicle replacement scheme.The Union Cabinet cleared the two-year programme aimed at incentivising owners of older trucks and buses to replace them with Bharat Stage-VI (BS-VI) compliant vehicles or electric vehicles (EVs).The scheme, said an official communique, has a total financial outlay of ₹9,585 crore, including ₹5,041 crore from the central government and an estimated ₹1,601 crore in tax concessions from participating states.As per the communique, the programme is expected to benefit around 2.07 lakh vehicle owners across the Delhi-NCR region.The scheme will cover approximately 1.91 lakh trucks and 16,329 buses currently operating under BS-IV or earlier emission standards.Pollution concernsThe approval comes amid continuing concerns over air quality in the Delhi-NCR region, particularly during winter months.Notably, according to a study conducted by the Automotive Research Association of India and The Energy and Resources Institute, the transport sector contributes 14 per cent of PM2.5 emissions, 40 per cent of carbon monoxide emissions and 63 per cent of nitrogen oxide emissions in the region.Of which, trucks and buses account for 36 per cent of PM2.5 emissions despite representing only 3 per cent of the total vehicle fleet.According to the communique, a single pre-BS heavy-duty vehicle emits pollution equivalent to 14 BS-VI-compliant vehicles, while a BS-IV vehicle emits 2.7 times more emissions than a BS-VI counterpart.Consequently, the replacement of older vehicles is expected to substantially reduce vehicular pollution across the region.Scheme benefitsUnder the programme, owners of BS-III and older vehicles will be required to scrap their vehicles at registered vehicle scrapping facilities, while BS-IV vehicles may either be scrapped or sold outside NCR in non-national clean air programme cities and towns.After which vehicle owners will then be required to purchase and register BS-VI-compliant or electric vehicles within the NCR region.In Delhi, light goods vehicles purchased under the scheme must be electric, while buses will be permitted only under BS-VI compressed natural gas (CNG) or electric vehicle categories.The Centre will provide a 5 per cent interest subvention on vehicle loans for five years, monthly fuel vouchers of up to ₹4,800 depending on vehicle category and lump-sum incentives for electric vehicle purchases or certificate of deposit trading.Besides, participating states will waive registration fees and provide motor vehicle tax concessions of up to 100 per cent for new vehicles and 50 per cent for used vehicles for a period of 10 years.Furthermore, state governments will waive pending liabilities on old vehicles participating in the scheme.Additionally, participating automobile manufacturers will offer discounts of 8 per cent on ex-showroom vehicle prices.The central government benefits will continue for five years from the registration date of the replacement vehicle, extending support beyond the scheme’s two-year enrolment period.ImplementationThe communique said implementation will be carried out through an integrated digital platform that will facilitate eligibility verification, interest subvention claims, fuel voucher credits and monitoring of pollution reduction outcomes.In addition, benefits provided by the Centre will continue for five years from the registration date of the replacement vehicle.The scheme will be monitored by an empowered committee chaired by the Cabinet Secretary, while District Collectors and District Magistrates will oversee implementation at the local level.Published on June 3, 2026
