The Union cabinet on Wednesday approved replacing old trucks and buses with Bharat Stage-VI (BS-VI) or electric vehicles in the Delhi-National Capital Region (NCR) region through a ₹9,585-crore scheme as part of efforts to curb air pollution.
BS-VI, the most stringent government-mandated vehicular emission standard equivalent to Euro 6 norms, seeks to reduce air pollutants.
The scheme approved on Wednesday offers a 5% interest subvention on loans for five years and monthly fuel vouchers of up to ₹4,800 for vehicle owners. Automobile manufacturers will provide an 8% discount on the ex-showroom price of new vehicles purchased under the scheme. To avail of the benefits, owners will have to scrap BS-III and older vehicles at authorised scrapping facilities.
BS-IV vehicles can be sold and operated in cities that are not covered under the National Clean Air Programme. The NCR Planning Board under the housing and urban affairs ministry will fund the scheme. The road transport and highways, petroleum, and natural gas ministries will implement it.
Delhi, Haryana, Rajasthan, and Uttar Pradesh governments will waive registration fees and grant up to 100% motor vehicle tax concessions for new vehicles and 50% for used vehicles for 10 years. They will also waive pending liabilities on the old vehicles as part of the scheme.
{{/usCountry}}Delhi, Haryana, Rajasthan, and Uttar Pradesh governments will waive registration fees and grant up to 100% motor vehicle tax concessions for new vehicles and 50% for used vehicles for 10 years. They will also waive pending liabilities on the old vehicles as part of the scheme.
{{/usCountry}}Union minister Ashwini Vaishnaw said these measures will bring a significant change and create the possibility of replacing over 200,000 vehicles.
International Council on Clean Transportation managing director (India) Amit Bhatt called the move a welcome step. “...our real-world emission study in Delhi showed that pre-BS-VI vehicles have very high emissions, with commercial vehicles being the worst of the lot.”
He said transitioning to cleaner fuels and electric power will definitely help improve Delhi’s air quality. “It is essential to scrap these vehicles to ensure they are not reused or misused in neighbouring states. Otherwise, they would continue to impact Delhi’s air and defeat the purpose of the policy.”
Delhi-NCR’s air pollution crisis extends well beyond the winter months. Seasonal factors such as stubble burning and adverse meteorological conditions worsen pollution in October and November. The air quality remains poor through much of the year due to emissions from vehicles, industry, construction activity, road dust, and waste burning.
According to IQAir’s 2025 World Air Quality Report, 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, more than 16 times the World Health Organisation’s guideline of 5 micrograms per cubic metre.
The government said trucks and buses account for 36% of transport-sector PM2.5 emissions in the region despite constituting only around 3% of the vehicle fleet, citing a 2018 Automotive Research Association of India and the Energy and Resources Institute study.
“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. Hence, the newer fleet is expected to reduce the vehicular pollution substantially,” the government said in a press release.