Centre clears ₹9,585-crore scheme to replace over 2 lakh polluting BS-IV trucks, buses in Delhi-NCR

Under the scheme, vehicles owners have been offered a 5% interest subvention on loans for five years.

The Union government on Wednesday approved a ₹9,585-crore scheme to replace around 200,000 BS-IV heavy vehicles, including 191,000 trucks and 16,329 buses, in Delhi-NCR with vehicles operating on cleaner BS-VI emission standards or CNG or battery, to curb air pollution in the region.

According to Bharat Stage (BS) emission standards, BS-VI diesel trucks have significantly less pollution. (Bachchan Kumar/ HT PHOTO - for representative purposes only)

Under the scheme, vehicles owners have been offered a 5% interest subvention on loans for five years, monthly fuel vouchers of up to ₹4,800, and 8% discount on ex-showroom price of new vehicles, as per a government release. To avail of the benefits, owners will have to scrap BS-III and older emission vehicles at authorised scrapping facilities.

“It is estimated that a single pre-BS heavy-duty vehicle emits as much as 14 BS-VI compliant vehicles. Even a BS-IV vehicle emits 2.7 times more than a BS-VI counterpart. The newer fleet is expected to reduce pollution substantially,” the government press release said.

According to Bharat Stage (BS) emission standards, BS-VI diesel trucks have significantly less pollution.

According to IQAir’s 2025 World Air Quality Report, New Delhi remained the world’s most polluted Capital for the eighth consecutive year, recording an annual average PM2.5 concentration of 82.2 micrograms per cubic metre (ug/m3) which is more than 16 times the World Health Organization’s guideline of 5ug/m3.

Who is funding the scheme?

The scheme will be funded by 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.

State governments of Delhi, Haryana, Rajasthan, and Uttar Pradesh will waive registration fees and grant up to 100% motor vehicle tax concessions for new vehicles and 50% for used vehicles for 10 years.

The state governments will also waive pending liabilities on old vehicles that are replaced under the scheme.

Briefing reporters after the cabinet meeting, Union minister Ashwini Vaishnaw said, “We will also request state governments for a 100% tax concession and registration fee waiver for 10 years. These measures will bring a significant change and create the possibility of replacing over two lakh vehicles.”

Experts said that the step would help curb emissions.

Amit Bhatt, India managing director at International Council on Clean Transportation, said, “It is a welcome step because our real-world emission study in Delhi showed that pre-BS VI vehicles have high emissions. Transitioning to cleaner fuels and batteries will help improve Delhi’s air quality. However, it is essential to scrap these vehicles in the proper manner.”