Cabinet approved a two-year scheme to reduce air pollution and promote cleaner mobility in Delhi-NCR. It will be funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs and implemented by the ministries of road transport and petroleum with Delhi, Haryana, Rajasthan and Uttar Pradesh. The total financial outlay is Rs 95.85 billion (Rs 95.85 bn), including Rs 50.41 billion from the central government and about Rs 16.01 billion in state tax concessions.

The scheme will incentivise owners of trucks and buses registered in the region who meet BS-IV or earlier norms to replace them with BS-VI or stricter vehicles or electric vehicles (EVs). The government cited an ARAI and TERI study that attributed 14 per cent of PM2.5 to transport and noted that trucks and buses account for 36 per cent of PM2.5 while forming three per cent of the fleet. Older heavy-duty vehicles were said to emit far more pollutants than BS-VI units.

The programme is expected to benefit about 0.207 million (0.207 mn) owners, comprising 0.191 million trucks and 16,329 buses across the participating states. BS-III or older vehicles must be scrapped at registered facilities while BS-IV units may be scrapped or sold outside the NCR in non-NCAP towns. Purchasers must register replacement vehicles within the NCR; in Delhi light goods vehicles under the scheme must be electric and buses must be BS-VI CNG or electric; government vehicles are excluded.

Central support will include a five per cent interest subvention on loans for five years, monthly fuel vouchers up to Rs 4,800 and lump-sum incentives for electric purchases, while states will waive registration fees and offer motor vehicle tax concessions up to 100 per cent for new vehicles and 50 per cent for used units for 10 years. Manufacturers will offer eight per cent discounts on ex-showroom prices. Implementation will be digital via an integrated portal for eligibility checks, automated claims and monitoring, and the scheme will be overseen by an empowered committee chaired by the Cabinet Secretary with district collectors implementing locally.