Delhi-NCR Air Pollution: Cabinet Approves ₹9,585 Crore Scheme to Replace Old Trucks and Buses
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NEW DELHI, June 3, 2026: In a major push to combat severe air pollution and promote cleaner mobility, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a landmark two-year scheme to replace old, polluting trucks and buses across the Delhi-NCR region. Funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs (MoHUA), the project will be implemented by the Ministry of Road Transport and Highways (MoRTH) and the Ministry of Petroleum and Natural Gas (MoPNG) in collaboration with Delhi, Haryana, Rajasthan, and Uttar Pradesh. The initiative boasts a total financial outlay of ₹9,585 crore, which includes ₹5,041 crore from the Central Government and an estimated ₹1,601 crore in tax concessions from the participating states. The scheme directly incentivizes owners of BS-IV or older commercial vehicles to transition to BS-VI compliant models or electric vehicles (EVs), targeting a substantial reduction in vehicular emissions.
Vehicular pollution remains a critical public health challenge in Delhi-NCR, especially during winter. According to a source apportionment report by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI), the transport sector is responsible for 14% of PM 2.5, 40% of Carbon Monoxide, and 63% of Nitrogen Oxide emissions in the region. Alarmingly, trucks and buses account for 36% of these PM 2.5 emissions despite making up just 3% of the total fleet. A single pre-BS heavy-duty vehicle emits as much as 14 BS-VI compliant vehicles, while a BS-IV vehicle emits 2.7 times more than its BS-VI counterpart. By accelerating the adoption of newer, cleaner technologies, the government expects to drastically lower these pollution levels.
The scheme is set to benefit approximately 2.07 lakh vehicle owners, encompassing 1.91 lakh trucks and 16,329 buses across the designated NCR states. Under the guidelines, scrapping at Registered Vehicle Scrapping Facilities is mandatory for BS-III or older vehicles. Meanwhile, BS-IV vehicles can either be scrapped or sold outside the NCR in non-National Clean Air Programme (NCAP) cities. To claim benefits, owners must purchase and register a BS-VI or electric vehicle within the NCR. In Delhi specifically, all light goods vehicles purchased under this scheme must be electric, while buses must be either BS-VI CNG or electric. Government-owned vehicles are excluded from participating.
To encourage compliance, the scheme offers robust financial incentives from both the government and the automotive industry. The Central Government will provide a 5% interest subvention on vehicle loans for five years, monthly fuel vouchers worth up to ₹4,800 depending on the vehicle category, and lump-sum benefits for EV purchases or Certificate of Deposit trading. State governments will waive registration fees and grant up to 100% motor vehicle tax concessions for new vehicles (50% for used vehicles) for 10 years, alongside waiving pending liabilities on old vehicles. Furthermore, participating Original Equipment Manufacturers (OEMs) will offer an 8% discount on ex-showroom prices.
The entire rollout will be fully digital, utilizing an integrated portal to enable real-time eligibility checks, automated interest subvention claims, monthly fuel voucher credits, and continuous monitoring of pollution reduction outcomes. While the enrollment window spans two years, the central government benefits will continue for five years from the vehicle’s registration date to ensure a sustained environmental impact. To oversee operations, an Empowered Committee chaired by the Cabinet Secretary—alongside the CEO of NITI Aayog, various union ministry secretaries, and state Chief Secretaries—will monitor the scheme, while District Collectors and District Magistrates will manage implementation at the grassroots level.