Delhi-NCR’s Old Trucks and Buses Are in Focus as Centre Clears Rs 9,585 Crore Plan

The Centre has cleared a new Rs 9,585 crore programme aimed at reducing pollution from older trucks and buses operating across Delhi-NCR. Approved by the Union Cabinet on Wednesday, the two-year initiative is designed to speed up the shift towards cleaner and less-polluting vehicles in one of the country’s most polluted regions.

Officials say the transport sector remains a major source of poor air quality in Delhi-NCR. While heavy commercial vehicles account for only a small share of the total number of vehicles on the roads, they release a disproportionately high amount of harmful pollutants. Trucks and buses together make up roughly 3 percent of the vehicle fleet but are linked to more than one-third of PM2.5 emissions generated by road transport.

Government estimates show that older heavy vehicles release significantly more pollution than newer models. According to officials, a heavy-duty vehicle operating under emission standards older than BS-VI can pollute as much as several newer vehicles combined. Even BS-IV vehicles produce far higher emissions than those meeting the latest norms.

To address this issue, the new scheme will encourage owners of BS-IV commercial vehicles to move to BS-VI-compliant or electric alternatives. The programme does not cover vehicles owned by government departments.

A package of financial benefits has been prepared to make the switch more attractive. Vehicle owners will be eligible for lower borrowing costs through a five-year interest subsidy on loans. They may also receive fuel support through monthly vouchers, with the amount varying by vehicle category. Additional one-time incentives will be available for those choosing electric vehicles or participating in certificate trading mechanisms.

State governments joining the programme will offer their own set of benefits. These include removing registration charges and providing long-term relief on motor vehicle taxes. New vehicle buyers could receive full tax exemptions, while purchasers of used vehicles may qualify for partial concessions. Authorities will also clear outstanding dues attached to old vehicles brought into the scheme.

The Centre’s contribution to the programme will be Rs 5,041 crore, while participating states are expected to provide support through tax-related relief estimated at around Rs 1,601 crore.

Funding will be routed through the National Capital Region Planning Board under the Ministry of Housing and Urban Affairs. Delhi, Haryana, Rajasthan and Uttar Pradesh will work together on implementation.

Official figures indicate that transport activities are responsible for a sizeable share of pollution across the region, contributing around 14 percent of PM2.5 levels, 40 percent of carbon monoxide emissions and nearly two-thirds of nitrogen dioxide emissions.

More than 2 lakh commercial vehicle owners are expected to fall within the scheme’s scope, including nearly 1.91 lakh truck owners and over 16,000 bus operators.

The benefits will not be available for BS-III or older vehicles. Such vehicles will have to be dismantled at authorised scrapping centres. Owners of BS-IV vehicles, however, can either send them for scrapping or transfer them to locations outside NCR where air quality norms permit their use.

Those seeking benefits under the programme must replace their old vehicles with a new BS-VI-compliant or electric vehicle and register it within NCR. Delhi will follow stricter rules, requiring light goods vehicles purchased under the scheme to be fully electric. Buses, meanwhile, will be allowed only if they run on BS-VI CNG technology or electricity.