To clean air, Union Cabinet approves replacement plan for buses, trucks in NCR

The Union Cabinet on Wednesday approved a major scheme worth Rs 9, 585 crores to phase out approximately 2.07 lakh old (1.91 lakh trucks and 16,329 buses) vehicles in Delhi and NCR states, such as Haryana, Rajasthan, and Uttar Pradesh to reduce air pollution and promote cleaner mobility. The Union Government will provide a five per cent interest subvention to vehicle owners on loans for five years and monthly fuel vouchers worth up to Rs 4,800, depending on vehicle category.
Automobile manufacturers will provide an eight per cent discount on the ex-showroom price of new vehicles purchased under the scheme. To avail of the benefits, owners will have to scrap BS-III and older vehicles at authorised scrapping facilities.
According to a statement issued by the Government, Delhi, Haryana, Rajasthan, and Uttar Pradesh Governments will waive registration fees and grant up to 100 per cent motor vehicle tax concessions for new vehicles and 50 per cent for used vehicles for 10 years. They will also waive pending liabilities on the old vehicles as part of the scheme.
The scheme seeks to incentivise owners of trucks and buses registered in the 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). The scheme will be 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).
For BS-III or older vehicles, scrapping at registered vehicle scrapping facilities is mandatory, while BS-IV vehicles may either be scrapped or sold outside NCR in non-NCAP cities or towns. Owners must then purchase and register a BS-VI or stricter norms compliant or electric vehicle within NCR. However, in Delhi, light goods vehicles purchased under the scheme must be electric, while buses must be BS-VI CNG or EV only.
Government vehicles are excluded from the scheme.
The Government said that by accelerating the transition to cleaner transport technologies, the scheme is expected to significantly reduce vehicular emissions and contribute to improved air quality across the Delhi-NCR region.
Implementation will be fully digital through an integrated portal, which will enable real-time eligibility checks, automated interest subvention claims, monthly fuel voucher credits, and monitoring of pollution reduction outcomes.
The Union Government benefits will continue for five years from the date of registration of the new vehicle, ensuring sustained impact beyond the two-year enrolment window.
The scheme will be monitored by an Empowered Committee, chaired by cabinet secretary with CEO, Niti Aayog, secretaries of MoHUA, MoRT&H, MoPNG, DFS, chief secretaries of states in Delhi NCR as members, and member secretary of NCRPB being the member convenor.
As per the 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), published in August 2018, the transport sector contributes 14% of PM 2.5, 40% of Carbon Monoxide (CO), and 63% of Nitrogen Oxide (NOx) emissions in the Delhi-NCR. Within the transport sector, trucks and buses account for 36% of PM 2.5 emissions with only 3% of the total fleet. It is estimated that a single Pre-BS heavy-duty vehicle emits as much as 14 BS-VI compliant vehicles. Even a BS-IV vehicle emits 2.7 times more than a BS-VI counterpart. Hence, the newer fleet is expected to reduce the vehicular pollution substantially.
The Cabinet approval comes as policymakers continue to explore measures to curb transport-related emissions in Delhi-NCR, where deteriorating air quality remains one of the region’s most persistent environmental challenges. Officials expect the replacement of older diesel fleets with cleaner BS-VI and electric alternatives to contribute significantly to lowering emissions from the commercial transport sector.
UP tightens pollution rules
Lucknow: Vehicles without a valid Pollution Under Control Certificate (PUCC) will not be provided fuel at petrol pumps in NCR districts in Uttar Pradesh from October 1, 2026, as part of measures to curb air pollution, Chief Secretary S P Goel said on Wednesday. Eight districts of UP — Gautam Buddh Nagar, Ghaziabad, Hapur, Bulandshahr, Meerut, Muzaffarnagar, Baghpat and Shamli districts — are part of the NCR, which also comprises districts from Haryana, Rajasthan and entire Delhi. Chairing a high-level review meeting on air pollution control in the NCR, Goel said the UP has set a target of reducing air pollution levels in the NCR region by 30-35 per cent during 2026.















