Government rolls out comprehensive plan to reduce vehicular pollution in Delhi-NCR

New Delhi: In a major push to tackle the chronic air pollution crisis in the National Capital Region (NCR), the Union Cabinet chaired by Prime Minister Narendra Modi has approved a landmark two-year clean mobility scheme aimed at replacing highly polluting trucks and buses with cleaner, low-emission vehicles.

With a total financial outlay of Rs 9,585 crore, the initiative seeks to accelerate the transition to Bharat Stage-VI (BS-VI) and electric vehicles (EVs), targeting one of the largest sources of vehicular pollution in Delhi-NCR.

The scheme will be funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs and implemented jointly by the Ministries of Road Transport and Highways and Petroleum and Natural Gas, in collaboration with Delhi, Haryana, Rajasthan and Uttar Pradesh.

The decision comes amid growing concerns over deteriorating air quality in the region, particularly during winter months when pollution levels frequently reach hazardous levels.

Immense gratitude to Hon’ble Prime Minister Shri @narendramodi ji and the Union Cabinet for approving this landmark scheme to support the replacement of older trucks and buses with cleaner BS-VI and EV alternatives across the Delhi NCR.

With a significant financial package, fuel… pic.twitter.com/7Y27LkS1f0

— Manjinder Singh Sirsa (@mssirsa) June 3, 2026

According to a source apportionment study conducted by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI), the transport sector contributes 14 per cent of PM2.5 emissions, 40 per cent of carbon monoxide emissions and 63 per cent of nitrogen oxide emissions in Delhi-NCR.

Although trucks and buses account for only about three per cent of the vehicle fleet, they are responsible for 36 per cent of PM2.5 emissions generated by the transport sector.

Experts note that a single pre-BS vehicle can emit as much pollution as 14 BS-VI compliant heavy-duty vehicles, while a BS-IV vehicle emits nearly 2.7 times more pollutants than its BS-VI counterpart.

The scheme is expected to benefit around 2.07 lakh vehicle owners, including approximately 1.91 lakh trucks and more than 16,000 buses operating in the NCR region.

Under the programme, owners of trucks and buses registered in Delhi-NCR and compliant with BS-IV or older emission norms will be encouraged to replace their vehicles with BS-VI-compliant or electric alternatives.

Owners of BS-III and older vehicles will be required to scrap their vehicles at authorised scrapping facilities, while BS-IV vehicles may either be scrapped or sold outside NCR in non-National Clean Air Programme (NCAP) cities and towns.

Special provisions have been included for Delhi, where light goods vehicles purchased under the scheme must be electric, while buses will be permitted only if they run on BS-VI-compliant CNG or electricity. Government-owned vehicles have been excluded from the programme.

To encourage participation, the Centre will provide a range of incentives, including a five per cent interest subvention on vehicle loans for five years, monthly fuel vouchers of up to Rs 4,800 depending on vehicle category, and one-time benefits linked to electric vehicle purchases or Certificate of Deposit trading.

State governments participating in the scheme 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 a period of ten years, and clear pending liabilities on old vehicles enrolled in the programme.

Automobile manufacturers are also expected to contribute by offering discounts of eight per cent on ex-showroom prices of eligible vehicles.

Officials say the programme is designed not only to improve air quality but also to support India’s broader climate and clean energy goals by accelerating the adoption of cleaner transport technologies and reducing dependence on older diesel-powered fleets.

Implementation will be managed through a fully digital platform that will enable real-time verification of vehicle eligibility, automated disbursement of incentives, fuel voucher credits and monitoring of environmental outcomes.

While enrolment under the scheme will remain open for two years, central government benefits will continue for five years from the date of registration of the new vehicle, ensuring long-term environmental gains.

An Empowered Committee chaired by the Cabinet Secretary will oversee implementation and monitor pollution reduction outcomes, while district administrations across the NCR will be responsible for on-ground execution and compliance.

Environmental experts view the initiative as one of the most significant targeted interventions in recent years to address vehicular emissions in Delhi-NCR. If implemented effectively, the scheme could substantially reduce particulate pollution and nitrogen oxide emissions, helping improve public health and air quality for millions of residents across the region.