Delhi NCR Gets Rs 9,585 Cr Push to Scrap Old Trucks, Cut Pollution

The Union Cabinet has approved a 2 year vehicle replacement scheme worth Rs 9,585 crore to reduce air pollution across Delhi NCR. The scheme will cover Delhi, Haryana, Rajasthan and Uttar Pradesh and aim to replace older commercial vehicles with cleaner BS VI or electric vehicles.

The total package includes Rs 5,041 crore from the Central Government and about Rs 1,601 crore in tax concessions from participating states. Around 2.07 lakh vehicles, including 1.91 lakh trucks and 16,329 buses, are expected to benefit.

Owners of BS IV and older trucks and buses registered in Delhi NCR can participate. BS III and older vehicles must be scrapped at authorized facilities, while BS IV vehicles can either be scrapped or sold outside NCR in non NCAP cities and towns before purchasing a new eligible vehicle.

The Centre will provide a 5% interest subsidy on vehicle loans for 5 years, monthly fuel vouchers of up to Rs 4,800 and additional lump sum incentives for EV purchases or Certificate of Deposit trading. Auto manufacturers will also offer an 8% discount on ex showroom prices.

State governments will waive registration fees, provide up to 100% motor vehicle tax concessions on new vehicles and 50% concessions on used vehicles for 10 years. Pending liabilities on old vehicles joining the scheme will also be waived.

In Delhi, new Light Goods Vehicles purchased under the scheme must be electric, while buses must be BS VI CNG or electric. The scheme will operate through a fully digital portal and benefits will continue for 5 years after registration of the new vehicle.