By Enersider Desk | New Delhi | 3 June 2026
The Union Cabinet, chaired by Prime Minister Narendra Modi has approved a two-year scheme aimed at reducing air pollution in the Delhi-NCR region and promoting cleaner mobility.
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 the Ministry of Petroleum and Natural Gas (MoPNG). It will be carried out in collaboration with Delhi, Haryana, Rajasthan and Uttar Pradesh.
The total financial outlay of ₹9,585 crore, includes ₹5,041 crore from the Central Government and an estimated ₹1,601 crore in tax concessions from participating states. The scheme aims to encourage owners of trucks and buses registered in Delhi-NCR that comply with BS-IV or older emission norms to replace them with BS-VI or stricter emission compliant vehicles or electric vehicles.
Image Credit: ANI
According to the government, the transport sector is a major contributor to air pollution in Delhi-NCR. Trucks and buses account for 36 per cent of PM 2.5 emissions despite making up only 3 per cent of the total vehicle fleet. The scheme is expected to help reduce vehicular emissions by increasing the adoption of cleaner vehicles.
The initiative is expected to benefit around 2.07 lakh vehicle owners, including 1.91 lakh truck owners and 16,329 bus owners across the Delhi-NCR region.
Under the scheme, BS-III or older vehicles must be scrapped at Registered Vehicle Scrapping Facilities. BS-IV vehicles may either be scrapped or sold outside NCR in non-NCAP cities and towns. Owners must then purchase and register a BS-VI, higher-standard or electric vehicle within NCR. In Delhi, Light Goods Vehicles purchased under the scheme must be electric, while buses must be BS-VI CNG or electric. Government vehicles are not covered under the scheme, according to the report.
The Centre will provide a 5 per cent interest subsidy on loans for five years, monthly fuel vouchers of up to ₹4,800 depending on vehicle category, and lump-sum benefits for EV purchases or Certificate of Deposit trading. State governments will waive registration fees, provide motor vehicle tax concessions and waive pending liabilities on old vehicles. Participating automobile manufacturers will offer an 8 per cent discount on ex-showroom prices.
The scheme will be implemented through a digital portal and monitored by an Empowered Committee chaired by the Cabinet Secretary, while District Collectors and District Magistrates will oversee implementation at the district level.
