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Informist, Wednesday, Jun. 3, 2026

 

--Cabinet OKs INR 50.41 bln for plan to phase out old trucks, buses in Delhi 

 

NEW DELHI – The Centre Wednesday approved a two-year scheme for replacement of old trucks and buses in the Delhi-National Capital Region, with an outlay of INR 95.85 billion. Of this, INR 50.41 billion will be contributed by the Centre and around INR 16.01 billion by the particiapting states in the form of tax concessions, the government said in a release.

 

The scheme will be funded through the National Capital Region Planning Board under the Ministry of Housing and Urban Affairs and implemented by the Ministry of Road Transport and Highways along with the Ministry of Petroleum and Natural Gas, as per the release. This would be in collaboration with the participating states and Union territories – Delhi, Haryana, Rajasthan, and Uttar Pradesh.

 

The scheme aims to incentivise owners of trucks and buses registered in Delhi–NCR to upgrade to Bharat Stage 6 or stricter emission-compliant vehicles, or electric vehicles. The larger goal is to lower air pollution in the region through cleaner mobility. 

 

For BS-III or older vehicles, scrapping at registered vehicle scrapping facilities is mandatory, while BS-IV vehicles may either be scrapped or sold in cities or towns that are are not included in the central government's National Clean Air Programme, the release said. Owners will then be required to purchase and register a BS-VI or stricter norms-compliant or electric vehicle within the National Capital Region. In Delhi, light commercial vehicles purchased under the scheme must be electric, while buses must be BS-VI compliant and compressed natural gas or electric only.

 

The scheme is expected to benefit about 191,000 truck and 16,329 bus owners in Delhi-NCR, as per the release. Government vehicles are excluded from the scheme. Under the scheme, the Centre will provide 5% interest subvention on loans for five years, monthly fuel vouchers worth up to INR 4,800 depending on the vehicle category, and lump sum benefits for electric vehicle purchases or certificate of deposit trading, the release said. Meanwhile, state governments will waive registration fees and grant up to 100% motor vehicle tax concessions for new vehicles and 50% for used vehicles for 10 years, it added. State governments will also waive pending liabilities on old vehicles participating in the scheme.

 

According to the release, participating automobile original equipment manufacurers will offer 8% discounts on ex-showroom prices. Implementation of the scheme will be fully digital through an integrated portal and benefits by the Centre will continue for five years from the date of registration of the new vehicle.  End

 

Reported by Shakshi Jain

Edited by Avishek Dutta

 

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