Scheme for Replacement of Old Trucks and Buses in Delhi-NCR Area

About Scheme for Replacement of Old Trucks and Buses in Delhi-NCR Area

• It is a scheme to replace old trucks and buses in the Delhi-NCR area to reduce air pollution in the region.
• Aim: It aimed at reducing air pollution in Delhi-NCR and promoting cleaner mobility.
  • It will incentivise owners of trucks and buses registered in the 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).
• Duration: The scheme is for two years.
• Implementing agency: It will be implemented by the Ministry of Road Transport and Highways (MoRTH) and Ministry of Petroleum and Natural Gas (MoPNG).
  • It will be implemented in collaboration with the participating States and Union Territories of Delhi, Haryana, Rajasthan, and Uttar Pradesh.
• Funded by: The scheme will be funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs (MoHUA). 
• Outlay: It has a total financial outlay of Rs.9,585 crore.
• Beneficiaries: The scheme 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).
• Key Features:
  • For BS‑III or older vehicles, scrapping at Registered Vehicle Scrapping Facilities is mandatory.
  • 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, and buses must be BS‑VI CNG or electric only.
  • Government vehicles are excluded from the scheme.
  • Digital portal: The scheme will be implemented by fully digital integrated portal, which will enable real‑time eligibility checks, automated interest subvention claims, monthly fuel voucher credits, and monitoring of pollution reduction outcomes. 
  • Monitoring: The scheme will be monitored by an Empowered Committee, chaired by Cabinet Secretary with CEO, Niti Ayog, Secretaries of MoHUA, MoRT&H, MoPNG, DFS, Chief Secretaries of states in Delhi NCR as members, and Member Secretary of NCRPB being the member convenor. 
  • At the district level, District Collectors/ District Magistrates will be implementing and monitoring the scheme.
• Benefits under scheme:
  • From Central Government: The benefits from the central government will continue for 5 years from the date of registration of the new vehicle, ensuring sustained impact beyond the two‑year enrolment window.
    • The Centre will provide 5% interest subvention on loans for five years, monthly fuel vouchers worth up to Rs.4,800 depending on vehicle category, and lump‑sum benefits for EV purchases or Certificate of Deposit trading.
  • From State Government: 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. 
    • State Government will also waive off pending liabilities on the old vehicles participating in the scheme.
  • From OEMs: Participating Auto Original Equipment Manufacturers (OEMs) will offer 8% discounts on ex‑showroom prices.