TL;DR
The Indian government has approved a ₹9,585 crore scheme to replace old trucks and buses in Delhi-NCR with BS-VI and electric vehicles, offering financial incentives and tax waivers to reduce pollution.
The Union Cabinet has approved a ₹9,585 crore scheme aimed at replacing older trucks and buses in the Delhi-NCR region with cleaner BS-VI compliant and electric vehicles. This two-year program seeks to significantly curb vehicular pollution and enhance air quality in the national capital region. The scheme's total outlay includes ₹5,041 crore from the central government and an estimated ₹1,601 crore in tax concessions from participating state governments.
Under the initiative, owners of BS-III and older vehicles will be required to scrap them at authorized facilities, while BS-IV vehicle owners have the option to scrap their vehicles or sell them outside the NCR. To qualify for benefits, owners must subsequently purchase and register a BS-VI compliant or electric vehicle within the NCR. The program offers financial incentives such as a 5 percent interest subvention on vehicle loans for five years, monthly fuel vouchers, and lump-sum incentives for EV purchases.
State governments will further support the scheme by waiving registration fees and providing up to 100 percent motor vehicle tax concessions for new vehicles, and 50 percent concessions for used vehicles over a 10-year period. Participating automobile OEMs will also offer an 8 percent discount on eligible vehicles. This comprehensive approach is expected to lead to a substantial reduction in emissions, particularly from trucks and buses which, despite constituting only 3 percent of the total fleet, contribute significantly to PM 2.5 emissions in Delhi-NCR.
