3% of vehicles contribute 36% of Delhi's pollution; Cabinet clears ₹9,585 crore fix

The Union Cabinet has approved a ₹9,585 crore two-year scheme aimed at replacing older trucks and buses in Delhi-NCR with cleaner BS-VI and electric vehicles, as the government seeks to reduce vehicular emissions in one of India's most polluted regions.

The scheme is based on a long-standing pollution challenge in Delhi-NCR, where a relatively small number of commercial vehicles contribute a disproportionately large share of transport-sector emissions.

Why target commercial vehicles?

According to a 2018 study by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI), the transport sector contributes 14 per cent of PM 2.5 emissions, 40 per cent of carbon monoxide emissions and 63 per cent of nitrogen oxide emissions in the region. Trucks and buses account for 36 per cent of transport-sector PM 2.5 emissions despite representing only 3 per cent of the vehicle fleet.

Government estimates show that a single pre-BS heavy-duty vehicle can emit as much pollution as 14 BS-VI-compliant vehicles, while a BS-IV vehicle emits 2.7 times more than its BS-VI equivalent.

Scrappage and replacement rules

The programme will cover around 2.07 lakh vehicle owners, including approximately 1.91 lakh trucks and 16,329 buses registered across Delhi, Haryana, Rajasthan and Uttar Pradesh.

Owners of BS-III and older vehicles will be required to scrap them through Registered Vehicle Scrapping Facilities. BS-IV vehicle owners can either scrap their vehicles or sell them outside the NCR in non-NCAP cities and towns. To receive benefits under the scheme, owners must then purchase and register a BS-VI, stricter-emission-compliant or electric vehicle within NCR.

Delhi will follow additional requirements. Light goods vehicles purchased under the scheme must be electric, while buses can only be replaced by BS-VI CNG or electric models. Government-owned vehicles are not eligible.

Incentives for fleet owners

The scheme has a total outlay of ₹9,585 crore, including ₹5,041 crore from the Centre and an estimated ₹1,601 crore in tax concessions from participating states.

Vehicle owners will receive a 5 per cent interest subvention on loans for five years, monthly fuel vouchers worth up to ₹4,800 depending on vehicle category, and lump-sum benefits linked to EV purchases or Certificate of Deposit trading. Participating vehicle manufacturers will offer an 8 per cent discount on ex-showroom prices.

State governments will waive registration fees, provide motor vehicle tax concessions of up to 100 per cent for new vehicles and 50 per cent for used vehicles for 10 years, and clear pending liabilities on old vehicles joining the programme.

Implementation and oversight

Information and Broadcasting Minister Ashwini Vaishnaw said: "The scheme is expected to significantly reduce vehicular emissions and contribute to improved air quality across the Delhi-NCR region."

The scheme will be administered through a digital portal that will handle eligibility checks, incentive claims and monitoring. Although enrolment will remain open for two years, central benefits will continue for five years from the registration date of the replacement vehicle.

An Empowered Committee chaired by the Cabinet Secretary will oversee implementation, while District Collectors and District Magistrates will monitor execution at the local level.

(With inputs from ANI)

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