The scheme is expected to reduce vehicular emissions and contribute to improved air quality across the Delhi-NCR region. File.
| Photo Credit: Sushil Kumar Verma
The Union Cabinet on Wednesday (June 3, 2026) approved a two-year scheme aimed at reducing air pollution in the Delhi-NCR region by accelerating the transition to cleaner transport technologies.With 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 the participating States, the scheme seeks to incentivise 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 speeding up the transition to cleaner transport technologies, the scheme is expected to reduce vehicular emissions and contribute to improved air quality across the Delhi-NCR region, an official statement said.The scheme will be funded through the National Capital Region Planning Board under the Ministry of Housing and Urban Affairs and implemented by the Ministry of Road Transport and Highways and Ministry of Petroleum and Natural Gas. It will be implemented in collaboration with the participating States and Union Territories of Delhi, Haryana, Rajasthan, and Uttar Pradesh.It 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), the official statement said.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.The Centre will provide 5% interest subvention on loans for five years, monthly fuel vouchers worth up to ₹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. The 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 from Central government will continue for five years from the date of registration of the new vehicle, ensuring sustained impact beyond the two‑year enrolment window.Air pollution in the Delhi-NCR remains a severe public health challenge, particularly during winter months. Within the transport sector, trucks and buses account for 36% of PM 2.5 emissions with only 3% of the total fleet. Published - June 03, 2026 09:41 pm IST
