New Delhi: Union Cabinet has approved a two-year vehicle replacement scheme for the Delhi-NCR region to reduce air pollution and accelerate the shift to cleaner transport technologies.
Chaired by Prime Minister Narendra Modi, the Cabinet cleared the scheme with a financial outlay of Rs 9,585 crore. The initiative will support the replacement of older trucks and buses with BS-VI-compliant or electric vehicles across Delhi, Haryana, Rajasthan and Uttar Pradesh.
The National Capital Region Planning Board (NCRPB) will fund the scheme. Meanwhile, the Ministries of Road Transport and Highways and Petroleum and Natural Gas will implement it in coordination with participating states and Union Territories.
According to the government, the scheme will benefit about 2.07 lakh vehicle owners, including 1.91 lakh truck owners and 16,329 bus operators in the Delhi-NCR region.
Officials said trucks and buses contribute disproportionately to vehicular pollution. Although they account for only a small share of the fleet, they generate a significant portion of particulate matter and nitrogen oxide emissions.
Vehicle replacement scheme offers financial incentives
Under the scheme, owners of BS-IV or older vehicles can receive incentives to switch to cleaner alternatives. Owners of BS-III and older vehicles must scrap their vehicles at authorised facilities. However, BS-IV vehicles may either be scrapped or sold outside NCR in non-NCAP cities and towns.
The Centre will provide a 5 per cent interest subvention on vehicle loans for five years. In addition, eligible owners will receive monthly fuel vouchers worth up to Rs 4,800 and lump-sum incentives for electric vehicle purchases or Certificate of Deposit trading.
Furthermore, participating state governments will waive registration fees and offer motor vehicle tax concessions. They will also waive pending liabilities on old vehicles enrolled under the scheme.
Auto manufacturers participating in the programme will offer discounts of up to 8 per cent on ex-showroom prices of eligible vehicles.
The government will implement the vehicle replacement scheme through a fully digital platform. Consequently, vehicle owners will be able to access eligibility checks, incentive claims and benefit tracking online.
Officials said the initiative aims to improve air quality, reduce emissions and promote cleaner mobility across the Delhi-NCR region over the coming years.
