The Ministry of Road Transport and Highways (MoRTH) signed the first Memorandum of Understanding under the Government of India's vehicle replacement scheme for Delhi-NCR with Ashok Leyland and its subsidiary Switch Mobility, making them the first Original Equipment Manufacturers to partner in the initiative. Under the agreement, both companies will provide an 8% discount on the ex-showroom price of eligible trucks and buses purchased through the scheme, with electric vehicle discounts capped at the equivalent Internal Combustion Engine vehicle discount for the same Gross Vehicle Weight category.
The Central Government will supplement this with 5% interest subvention and fixed monthly fuel vouchers for a five-year period, while participating State Governments will provide up to 100% concession on motor vehicle tax for ten years and complete waiver of registration fees for eligible beneficiaries. The scheme specifically targets owners of trucks and buses complying with Bharat Stage-IV or earlier emission norms registered in Delhi-NCR, incentivizing their replacement with Bharat Stage-VI or stricter emission-compliant vehicles, including electric alternatives.
The initiative aims to reduce vehicular pollution and support fleet modernization in the Delhi-NCR region, with the Ministry noting that more automobile OEMs are expected to join the scheme in the coming days to enable wider participation and greater adoption of cleaner transport technologies. The signing of this first MoU represents a significant milestone toward operationalizing the pollution reduction program.