Delhi-NCR vehicle replacement scheme backed by auto industry to speed BS-VI and EV adoption

Auto industry bodies and commercial vehicle makers welcomed the Union Cabinet’s approval of a Delhi-NCR truck and bus replacement scheme on Wednesday. The plan targets older vehicles that meet BS-IV or earlier norms. It offers incentives to shift towards BS-VI vehicles or electric vehicles. The industry said the move could speed up cleaner transport and help cut pollution.

Representative image

The scheme focuses on trucks and buses registered in the Delhi-NCR area. Owners will be encouraged to scrap or replace eligible vehicles. The benefits include support for cleaner models, including EVs. The package also aims to improve fleet quality in a region facing high air pollution levels, according to industry comments.

Delhi-NCR vehicle replacement scheme: Who qualifies and how many benefit

The scheme applies to truck and bus owners in Delhi and NCR states. It covers vehicles that comply with BS-IV or earlier emission standards. The government estimated about 2.07 lakh owners will benefit. This includes 1.91 lakh trucks and 16,329 buses. The participating regions include Haryana, Rajasthan, Uttar Pradesh, and Delhi.

The scheme encourages upgrades to BS-VI or stricter emission-compliant vehicles, or to electric vehicles EVs. It also allows support through certificate of deposit trading. By targeting older commercial vehicles, the plan seeks to lower the pollution load linked to freight and passenger movement across NCR.

Delhi-NCR vehicle replacement scheme: Incentives offered by the Centre

Under the scheme, the Centre will provide a 5 per cent interest subvention on loans for five years. Owners will also get monthly fuel vouchers worth up to Rs 4,800. The exact voucher value will depend on the vehicle category. For EV purchases, owners can receive lump-sum benefits.

Society of Indian Automobile Manufacturers SIAM President Shailesh Chandra called the decision a step towards cleaner vehicles. "This is a positive step towards accelerating the adoption of cleaner vehicles in Delhi NCR,\" Chandra said. Chandra said owners of old commercial vehicles can use the programme to reduce the pollution load in NCR.

Delhi-NCR vehicle replacement scheme: Industry response from makers

Vehicle manufacturers said the scheme supports fleet modernisation and cleaner mobility. \"We applaud the Government for approving the vehicle replacement scheme for Delhi-NCR. This is a significant step towards accelerating fleet modernisation while addressing one of the regions most pressing environmental challenges,\" said B. Srinivas, Managing Director and Chief Executive Officer at VE Commercial Vehicles.

\"As India progresses towards its Net Zero 2070 ambitions, such initiatives demonstrate how policy, industry and technology can come together to drive sustainable mobility,\" Srinivas said, adding, \"we believe this will not only support cleaner transportation in Delhi-NCR but also serve as a model for fleet renewal and modernisation across the country.\"

Tata Motors Ltd MD & CEO Girish Wagh also welcomed the decision. \"The approval of this scheme is a positive step towards accelerating fleet modernisation and cleaner mobility in the Delhi-NCR region. Aligned with our commitment to make cargo and passenger transportation greener and more efficient, we are well positioned to support this transition through our expansive portfolio of BS-VI and zero-emission commercial vehicles,\" Wagh said.

\"We look forward to studying the finer details of the notification to further align our efforts towards building a more sustainable and modern commercial vehicle ecosystem,\" Wagh added.

Delhi-NCR vehicle replacement scheme: Timeline and implementation plan

Addressing a press conference, I&B Minister Ashwini Vaishnaw said that its a two-year scheme. It will replace older and BS IV trucks and buses with BS VI-compliant variants. \"This is a constant effort by the government to reduce pollution in cities and villages,\" he said.

The government said funding will come through the National Capital Region Planning Board NCRPB under the Ministry of Housing and Urban Affairs MoHUA. Implementation will be handled by the Ministry of Road Transport and Highways MoRTH and the Ministry of Petroleum and Natural Gas MoPNG. It will run with Haryana, Rajasthan, Uttar Pradesh, and the Union Territory of Delhi.

With inputs from PTI