Cabinet approves Rs 9,585 crore Delhi-NCR clean mobility scheme
The Union Cabinet chaired by Prime Minister Narendra Modi has approved a two-year scheme aimed at reducing air pollution in the Delhi-National Capital Region (NCR) through replacement of older trucks and buses with cleaner vehicles.
The scheme has a total financial outlay of Rs 9,585 crore, including Rs 5,041 crore from the Central Government and an estimated Rs 1,601 crore in tax concessions from participating states.
It 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) in coordination with Delhi, Haryana, Rajasthan, and Uttar Pradesh.
The scheme targets replacement of trucks and buses in Delhi-NCR complying with Bharat Stage-IV (BS-IV) or older emission standards with Bharat Stage-VI (BS-VI) compliant or electric vehicles (EVs).
Vehicle replacement plan
The scheme is expected to benefit around 2.07 lakh vehicle owners, including approximately 1.91 lakh truck owners and 16,329 bus owners across Delhi, Haryana, Rajasthan, and Uttar Pradesh within the NCR region.
Under the scheme, BS-III or older vehicles will have to be scrapped at Registered Vehicle Scrapping Facilities.
BS-IV vehicles may either be scrapped or sold outside NCR in non-National Clean Air Programme (NCAP) cities and towns. Vehicle owners will then be required to purchase and register BS-VI compliant or electric vehicles within NCR.
In Delhi, Light Goods Vehicles purchased under the scheme will have to be electric, while buses will be limited to BS-VI compressed natural gas (CNG) or electric models. Government-owned vehicles are excluded from the programme.
Financial incentives
The Central Government will provide a 5% interest subvention on loans for five years along with monthly fuel vouchers of up to Rs 4,800 depending on vehicle category. Additional lump-sum incentives will also be available for EV purchases or Certificate of Deposit trading.
Participating state governments will waive registration fees and provide motor vehicle tax concessions of up to 100% for new vehicles and 50% for used vehicles for a period of 10 years.
Pending liabilities on old vehicles participating in the scheme will also be waived by state governments. Participating automobile original equipment manufacturers (OEMs) will offer discounts of 8% on ex-showroom vehicle prices.
Pollution reduction rationale
According to the “Source Apportionment of Particulate Matter (PM2.5 and PM10) in the NCR” report prepared by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI) and published in August 2018, the transport sector contributes 14% of PM2.5 emissions, 40% of carbon monoxide (CO), and 63% of nitrogen oxide (NOx) emissions in Delhi-NCR.
The report stated that trucks and buses contribute 36% of PM2.5 emissions despite accounting for only 3% of the total vehicle fleet.
The government stated that a single pre-BS heavy-duty vehicle emits pollution equivalent to around 14 BS-VI compliant vehicles, while a BS-IV vehicle emits approximately 2.7 times more than a BS-VI vehicle.
Implementation and monitoring
Implementation of the scheme will be carried out through a digital platform designed to support eligibility verification, interest subvention claims, fuel voucher credits, and monitoring of pollution reduction outcomes. Benefits provided by the Central Government will continue for five years from the date of registration of the new vehicle.
The scheme will be monitored by an Empowered Committee chaired by the Cabinet Secretary. Members will include the Chief Executive Officer (CEO) of NITI Aayog, Secretaries of MoHUA, MoRTH, MoPNG, and the Department of Financial Services (DFS), along with Chief Secretaries of Delhi-NCR states. The Member Secretary of NCRPB will act as the convenor.
At the district level, District Collectors and District Magistrates will oversee implementation and monitoring.
The featured photograph is for representation only.
