The Union Cabinet has approved a two-year scheme that incentivises truck and bus owners in the National Capital Region to turn electric or upgrade to BS-VI compliant vehicles. BS-VI is the latest emissions standard which includes stricter curbs on pollutants such as carbon monoxide and nitrogen oxide.
The government approved the scheme on June 3, saying it was “aimed at reducing air pollution in the Delhi-NCR region and promoting cleaner mobility.” Emissions from transport have long been shown to be the biggest year-round contributors to air pollution in NCR — up to 30% by some estimates. Trucks and buses were found to account for 36% of vehicular PM 2.5 emissions, despite being only 3% of the total fleet, according to a 2018 study by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI).
The BS-VI standards include reductions between 25% and 80% in tailpipe emissions of sulphur, nitrogen oxide, particulate matter and hydrocarbons for petrol and diesel vehicles compared to BS-IV norms. Owners of BS-III vehicles will have to mandatorily scrap the vehicles, while owners of BS-IV vehicles have the option of scrapping or selling them in non-polluted areas outside NCR. Owners will then have to purchase either electric vehicles or BS-VI compliant ones.
To motivate owners, the government has offered a 5% interest subsidy on loans for five years, monthly fuel vouchers worth up to ₹4,800, and lump‑sum benefits for EV purchases, depending on the vehicle category. States will also waive registration fees and offer 100% motor vehicle tax concessions for new vehicles, and 50% for older ones used up to 10 years. Other benefits include discounts of 8% on ex‑showroom prices.
“The benefits by the central government will continue for five years from the date of registration of the new vehicle, ensuring sustained impact beyond the two‑year enrolment window,” the government said.
The scheme is likely to benefit 1.91 lakh truck and 16,329 bus owners operating in the NCR region, which includes Delhi, Haryana, Rajasthan, and Uttar Pradesh. The scheme was approved with financial outlay of ₹9,585 crores, including ₹5,041 crores from the central government and an estimated ₹1,601 crores in tax concessions from the participating states. Government vehicles are excluded from the scheme.
Banner image: A truck transporting goods in Uttar Pradesh. Representative image by Shantum Singh via Pexels.
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