The scheme is a two-year plan approved by the Union Cabinet chaired by Prime Minister Narendra Modi.
Objective: Reduce air pollution in Delhi-NCR region and promote clean transportation.
Total budget allocated: ₹9,585 crore.
Central government contribution: ₹5,041 crore.
Partner states contribution (through tax concessions): Estimated ₹1,601 crore.
Implementing ministries: Ministry of Housing and Urban Affairs (through National Capital Region Planning Board - NCRPB for funding), Ministry of Road Transport and Highways, and Ministry of Petroleum and Natural Gas.
Partner states/UTs: Delhi, Haryana, Rajasthan, and Uttar Pradesh.
Target vehicles: Trucks and buses registered in Delhi-NCR that comply with BS-IV or earlier emission standards.
Number of beneficiaries: Approximately 207,000 vehicle owners (191,000 trucks + 16,329 buses).
Emission statistics from ARAI and TERI report (August 2018): Transport sector contributes 14% of PM 2.5, 40% of CO, and 63% of NOx emissions in Delhi-NCR.
Trucks and buses constitute 36% of PM 2.5 emissions despite being only 3% of total vehicles.
A pre-BS heavy-duty vehicle emits equivalent to 14 BS-VI standard vehicles.
A BS-IV vehicle emits 2.7 times more than a BS-VI equivalent.
Mandatory scrapping for BS-III or older vehicles at registered vehicle scrapping facilities.
BS-IV vehicles can be scrapped or sold outside NCR in non-NCAP cities/towns.
New vehicles must be BS-VI compliant or electric and registered within NCR.
Special requirement for Delhi: Light commercial vehicles must be electric; buses must be BS-VI CNG or electric.
Government vehicles are excluded from the scheme.
Benefits Structure
Central government benefits:
5% interest subsidy on loans for 5 years
Monthly fuel vouchers up to ₹4,800 based on vehicle category
One-time benefit for purchasing electric vehicles or trading deposit certificates
State government benefits:
Waiver of registration fees
100% motor vehicle tax exemption on new vehicles
50% motor vehicle tax exemption on old vehicles
Tax exemptions valid for 10 years
Waiver of pending liabilities on old vehicles included in the scheme
Auto manufacturer participation: 8% discount on ex-showroom prices
Implementation Details
Fully digital implementation through an integrated portal.
Central government benefits continue for 5 years from date of new vehicle registration.
Two-year enrollment period with continuous impact thereafter.
Monitoring Structure
Headed by Cabinet Secretary
Committee includes CEO of NITI Aayog, Secretaries of Ministry of Home Affairs, Ministry of Agriculture & Health, Ministry of Pollution Control, Ministry of State Security, Chief Secretaries of Delhi-NCR states
Member Secretary of NCRPB as Coordinator
District Collectors/Magistrates implement and monitor at district level