Headline

Cabinet approves Scheme for support to NCRPB for replacement of old trucks and buses in Delhi-NCR area

Extracted Data Points

  • The Union Cabinet chaired by Prime Minister Narendra Modi approved a two-year scheme to reduce air pollution in Delhi-NCR region
  • Total financial outlay: ₹9,585 crore
  • Central Government contribution: ₹5,041 crore
  • Estimated tax concessions from participating States: ₹1,601 crore
  • Scheme implemented through National Capital Region Planning Board (NCRPB) under Ministry of Housing and Urban Affairs (MoHUA)
  • Implementation by Ministry of Road Transport and Highways (MoRTH) and Ministry of Petroleum and Natural Gas (MoPNG)
  • Collaboration with participating States and UTs: Delhi, Haryana, Rajasthan, and Uttar Pradesh
  • Targets vehicles registered in Delhi-NCR region complying with BS-IV or earlier emission norms
  • Goal: Replace with BS-VI or stricter emission-compliant vehicles, or electric vehicles (EVs)
  • According to ARAI and TERI report (August 2018), transport sector contributes:
  • 14% of PM 2.5 emissions
  • 40% of Carbon Monoxide (CO) emissions
  • 63% of Nitrogen Oxide (NOx) emissions in Delhi-NCR
  • Within transport sector, trucks and buses account for 36% of PM 2.5 emissions with only 3% of total fleet
  • A single Pre-BS heavy-duty vehicle emits as much as 14 BS-VI compliant vehicles
  • A BS-IV vehicle emits 2.7 times more than a BS-VI counterpart
  • Expected beneficiaries: approximately 2.07 lakh vehicle owners
  • 1.91 lakh trucks
  • 16,329 buses
  • For BS-III or older vehicles: scrapping at Registered Vehicle Scrapping Facilities is mandatory
  • For BS-IV vehicles: may be scrapped or sold outside NCR in non-NCAP cities/towns
  • In Delhi, Light Goods Vehicles purchased under scheme must be electric
  • In Delhi, buses must be BS-VI CNG or electric only
  • Government vehicles excluded from the scheme

Benefits Under the Scheme

  • Central Government provides 5% interest subvention on loans for five years
  • Monthly fuel vouchers worth up to ₹4,800 depending on vehicle category
  • Lump-sum benefits for EV purchases or Certificate of Deposit trading
  • State governments will waive registration fees
  • State governments grant up to 100% motor vehicle tax concessions for new vehicles for 10 years
  • State governments grant 50% motor vehicle tax concessions for used vehicles for 10 years
  • State governments will waive pending liabilities on old vehicles participating in the scheme
  • Participating Auto OEMs will offer 8% discounts on ex-showroom prices

Implementation Details

  • Fully digital implementation through integrated portal
  • Portal enables real-time eligibility checks
  • Automated interest subvention claims
  • Monthly fuel voucher credits
  • Monitoring of pollution reduction outcomes
  • Benefits by central government continue for 5 years from date of new vehicle registration
  • Scheme monitored by Empowered Committee chaired by Cabinet Secretary
  • Committee members include:
  • CEO, Niti Aayog
  • Secretaries of MoHUA, MoRT&H, MoPNG, DFS
  • Chief Secretaries of states in Delhi NCR
  • Member Secretary of NCRPB (member convenor)
  • At district level: District Collectors/District Magistrates implement and monitor scheme