Cabinet Greenlights ₹9,585 Crore Scheme for Cleaner Transport in Delhi-NCR: A Leap Towards Greener Mobility
The Union Cabinet has approved a transformative ₹9,585 crore scheme to slash air pollution and champion cleaner transport in the Delhi-NCR region. This two-year initiative incentivizes the replacement of older, polluting trucks and buses with BS-VI compliant or electric vehicles, promising a significant improvement in air quality and fostering sustainable urban mobility.
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Scheme At A Glance
On Wednesday, June 3, 2026, the Union Cabinet officially approved a significant two-year scheme with an impressive outlay of ₹9,585 crore, dedicated to fostering cleaner mobility in the National Capital Region (NCR). This initiative aims to tackle the persistent challenge of air pollution by encouraging a swift transition to more environmentally friendly transport options for commercial vehicles. The scheme specifically targets approximately 207,000 vehicles, comprising 1.91 lakh trucks and 16,329 buses, operating within the Delhi-NCR region.
Why This Scheme Is Crucial
Air pollution in the Delhi-NCR remains a severe public health challenge, particularly during the critical winter months. Studies indicate that the transport sector is a major contributor to this problem, accounting for 14% of PM 2.5, 40% of Carbon Monoxide (CO), and 63% of Nitrogen Oxide (NOx) emissions in the region. Even more alarming is the disproportionate impact of trucks and buses; despite constituting only 3% of the total vehicle fleet, they contribute a substantial 36% of PM 2.5 emissions from the transport sector. The government highlighted that a single pre-Bharat Stage (BS) heavy-duty vehicle emits as much pollution as 14 BS-VI compliant heavy-duty vehicles, and a BS-IV vehicle emits 2.7 times more than a BS-VI counterpart, underscoring the urgent need for fleet modernization.
Key Objectives and Ambition
The primary objective of this new scheme is to incentivize owners of trucks and buses registered in Delhi-NCR that currently adhere to Bharat Stage-IV (BS-IV) or earlier emission norms to replace their vehicles. The replacements must be with BS-VI compliant, stricter emission-compliant vehicles, or electric vehicles (EVs). This strategic shift is expected to significantly reduce vehicular emissions and contribute to improved air quality across the Delhi-NCR region.
Financial Outlay and Funding
The comprehensive scheme boasts a total financial outlay of ₹9,585 crore. The Central Government's direct contribution will be ₹5,041 crore. Additionally, the participating states—Delhi, Uttar Pradesh, Haryana, and Rajasthan—are expected to provide an estimated ₹1,601 crore in tax concessions. 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 the Ministry of Petroleum and Natural Gas (MoPNG).
Incentives Driving the Change
To encourage widespread adoption of cleaner vehicles, the scheme offers a multi-pronged incentive structure:
Central Government Support
- A 5% interest subvention on loans for five years will be provided to eligible owners.
- Monthly fuel vouchers worth up to ₹4,800, depending on the vehicle category, will be offered.
- Lump-sum benefits are available for electric vehicle purchases or Certificate of Deposit trading.
State Government Concessions
- Participating state governments will waive registration fees.
- Up to 100% motor vehicle tax concessions for new vehicles and 50% for used vehicles will be granted for a period of 10 years.
- All pending liabilities on old vehicles enrolled in the scheme will be waived.
Manufacturer Discounts
- Participating Automobile Original Equipment Manufacturers (OEMs) will offer an 8% discount on the ex-showroom prices of eligible vehicles.
Implementation and Monitoring
The scheme will be implemented through an integrated digital portal designed to streamline the process. This portal will facilitate real-time eligibility checks, automated processing of interest subvention claims, monthly crediting of fuel vouchers, and continuous monitoring of pollution reduction outcomes. An Empowered Committee, chaired by the Cabinet Secretary, will provide overall oversight for the scheme. At the local level, District Collectors and District Magistrates will be responsible for program implementation and monitoring. Significantly, the benefits provided by the Central Government will continue for five years from the date of registration of the new vehicle, extending support beyond the initial two-year enrollment period to ensure long-term impact.
Eligibility and Vehicle Specifics
The scheme targets trucks and buses registered in the Delhi-NCR region that comply with BS-IV or earlier emission norms. Specific guidelines apply to vehicle replacement:
- Owners of BS-III or older vehicles are required to scrap their vehicles at authorized Registered Vehicle Scrapping Facilities.
- BS-IV vehicles may either be scrapped or sold outside the NCR in non-National Clean Air Programme (NCAP) cities and towns.
- The new vehicles purchased under the scheme must be BS-VI compliant or stricter emission-compliant, or electric vehicles.
- For Delhi specifically, 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 this scheme.
The Road Ahead
This substantial investment by the Union Cabinet represents a critical step towards mitigating air pollution and promoting sustainable transportation in one of the world's most densely populated regions. By incentivizing the replacement of aging, high-polluting commercial vehicles with modern, cleaner alternatives, the scheme is expected to yield significant environmental benefits and improve public health for millions of residents in Delhi and the surrounding NCR states. The collaborative efforts between central and state governments, coupled with private sector participation, are poised to transform the transport landscape, paving the way for a healthier and greener future for Delhi-NCR.