The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a two-year scheme to reduce air pollution in Delhi–NCR and promote cleaner mobility. Funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs (MoHUA) and implemented by the Ministry of Road Transport and Highways (MoRTH) and Ministry of Petroleum and Natural Gas (MoPNG), the scheme involves the States and Union Territories of Delhi, Haryana, Rajasthan, and Uttar Pradesh.

With a total financial outlay of Rs 9,585 crore, including Rs 5,041 crore from the Centre and Rs 1,601 crore in tax concessions from participating States, the programme incentivises owners of trucks and buses registered in Delhi–NCR that comply with BS-IV or earlier emission norms to replace them with BS-VI or stricter emission-compliant vehicles, or electric vehicles (EVs). By accelerating the adoption of cleaner transport technologies, it is expected to significantly lower vehicular emissions and improve air quality across the region.

Air pollution in Delhi-NCR remains a major public health challenge, particularly during winter months. A report on “Source Apportionment of Particulate Matter (PM 2.5 and PM 10) in the NCR” prepared by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI) in August 2018 states that the transport sector contributes 14 per cent of PM 2.5, 40 per cent of Carbon Monoxide (CO), and 63 per cent of Nitrogen Oxide (NOx) emissions. Within this sector, trucks and buses account for 36 per cent of PM 2.5 emissions while constituting only three per cent of the fleet. A single pre-BS heavy-duty vehicle emits as much as 14 BS-VI compliant vehicles, and a BS-IV vehicle emits 2.7 times more than a BS-VI counterpart, making the transition to a newer fleet crucial for pollution reduction.

The scheme will benefit approximately 2.07 lakh vehicle owners in Delhi-NCR, comprising 1.91 lakh trucks and 16,329 buses. For BS?III or older vehicles, scrapping at registered Vehicle Scrapping Facilities is mandatory, while BS?IV vehicles may be scrapped or sold outside NCR in non?NCAP cities. Owners must then purchase and register a BS?VI or stricter compliant, or electric, vehicle within NCR. In Delhi, Light Goods Vehicles under the scheme must be electric, and buses must be BS?VI CNG or electric only. Government vehicles are excluded.

Benefits include a 5 per cent interest subvention on loans for five years, monthly fuel vouchers worth up to Rs 4,800 depending on vehicle category, and lump-sum benefits for EV purchases or Certificate of Deposit trading. State governments will waive registration fees and provide up to 100 per cent motor vehicle tax concessions for new vehicles and 50 per cent for used vehicles for ten years, alongside waiver of pending liabilities on old vehicles participating in the scheme. Participating auto OEMs will offer 8 per cent discounts on ex-showroom prices.

Implementation will be fully digital through an integrated portal enabling real-time eligibility checks, automated interest subvention claims, monthly fuel voucher credits, and monitoring of pollution reduction outcomes. Central government benefits will continue for five years from the date of new vehicle registration, ensuring sustained impact beyond the two-year enrolment period.

The scheme will be monitored by an Empowered Committee chaired by the Cabinet Secretary, with the CEO of Niti Aayog, Secretaries of MoHUA, MoRTH, MoPNG, DFS, Chief Secretaries of the Delhi-NCR States, and the Member Secretary of NCRPB as convenor. District Collectors and District Magistrates will implement and monitor the programme at the district level.