Auto industry applauds truck and bus replacement scheme to reduce pollution in Delhi-NCR

The auto industry has welcomed the Union Cabinet’s approval of a new scheme to replace older trucks and buses in Delhi-NCR, saying it could help cut pollution and speed up the shift to cleaner commercial vehicles. The programme targets BS-IV and older vehicles registered in Delhi-NCR and offers financial support to encourage owners to move to BS-VI or stricter emission-compliant vehicles, including electric models.

Industry response

The move has drawn strong support from vehicle makers and industry groups. SIAM President Shailesh Chandra mentioned to PTI, "This is a positive step towards accelerating the adoption of cleaner vehicles in Delhi NCR," adding that it would "provide an opportunity to owners of old Commercial Vehicles to leverage the programme, thereby contributing to reducing pollution load in NCR".

Heavy commercial vehicle makers also said the scheme could support fleet renewal. B. Srinivas, Managing Director and Chief Executive Officer at VE Commercial Vehicles, said, "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 region's most pressing environmental challenges," and added, "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 MD & CEO Girish Wagh told PTI, "The approval of this scheme is a positive step towards accelerating fleet modernisation and cleaner mobility in the Delhi-NCR region." He added that the company would study the finer details of the notification.

Wider policy push

Speaking at a press conference, I&B Minister Ashwini Vaishnaw said the scheme reflects a steady effort by the government to reduce pollution in cities and villages. The industry sees the move as part of a broader push toward sustainable transport and quicker commercial vehicle replacement.

Cleaner fleets for NCR

The scheme is aimed at commercial vehicle owners across Delhi, Haryana, Rajasthan and Uttar Pradesh. It is expected to cover about 2.07 lakh vehicle owners, including 1.91 lakh trucks and 16,329 buses. The Centre has planned a package that includes a 5 per cent interest subvention on loans for five years, monthly fuel vouchers worth up to ₹4,800 depending on the vehicle category, and lump-sum benefits for EV purchases or certificate of deposit trading.

According to the government, the initiative will run for two years and will be implemented through the National Capital Region Planning Board under the Ministry of Housing and Urban Affairs. The Ministry of Road Transport and Highways and the Ministry of Petroleum and Natural Gas will handle execution, along with the participating states and the Union Territory of Delhi.

(With inputs from PTI)

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