The Central Government has approved a new Rs. 9585 crores programme aimed at accelerating the replacement of older commercial vehicles in the Delhi-NCR region. The initiative is intended to encourage the adoption of cleaner BS-VI-compliant and electric trucks and buses as part of broader efforts to address air pollution in the region.
The scheme will remain open for enrolment for two years and will be jointly implemented by the Ministry of Road Transport and Highways (MoRTH), the National Capital Region Planning Board (NCRPB) and the governments of Delhi, Haryana, Uttar Pradesh and Rajasthan.
Under the programme, operators of BS-IV and older trucks and buses registered in Delhi-NCR can avail financial benefits when replacing their vehicles with BS-VI-compliant or electric alternatives registered within the NCR. The government has allocated Rs. 5041 crores towards the scheme, while participating state governments are expected to contribute through tax concessions valued at around Rs. 1601 crores.
To encourage fleet modernisation, eligible buyers will receive a range of incentives. These include a 5 percent interest subsidy on vehicle loans for up to five years, monthly fuel vouchers of up to Rs. 4800 depending on vehicle category, and additional benefits linked to electric vehicle purchases or Certificate of Deposit trading. Vehicle manufacturers participating in the programme are also expected to offer discounts of around 8 percent on the ex-showroom price of new vehicles.
The government has stated that support measures such as fuel vouchers and interest subvention will continue for five years from the date of registration of the replacement vehicle, even though the enrolment period itself is limited to two years.
Scrappage requirements will vary depending on the age and emission standard of the vehicle being replaced. Owners of BS-III and older vehicles will be required to scrap their vehicles at authorised scrapping facilities. Meanwhile, BS-IV vehicle owners can either opt for scrappage or transfer their vehicles to locations outside the NCR in non-NCAP cities and towns before purchasing a replacement.
Special provisions have also been introduced for Delhi. Under the scheme, replacement light commercial vehicles purchased in the capital must be electric, while buses will qualify only if they are powered by BS-VI CNG engines or electric drivetrains. Government-owned vehicles will not be eligible for benefits.
The scheme will operate through a dedicated digital platform designed to handle eligibility verification, incentive disbursement and emissions monitoring. Authorities believe the digital framework will help streamline implementation while providing real-time oversight of environmental outcomes.
According to the government, more than 1.9 lakh trucks and around 16,000 buses operating in Delhi-NCR currently fall under the BS-IV and older emission categories. Policymakers expect the programme to accelerate fleet renewal and support the transition towards cleaner transport technologies.