Economy

Government approves Rs 9,585 crore initiative to phase out aging trucks and buses in Delhi-NCR.

Published On Wed, 03 Jun 2026
Asian Horizon Network
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The Union Cabinet on Wednesday approved a ₹9,585 crore two-year scheme to replace old trucks and buses in Delhi-NCR to reduce air pollution. Implemented through the NCR Planning Board, the initiative will encourage owners of BS-IV and older commercial vehicles to switch to cleaner BS-VI or electric vehicles. The Centre will contribute ₹5,041 crore, while participating states will provide tax concessions worth around ₹1,601 crore. The government estimates the scheme will benefit nearly 2.07 lakh vehicle owners, including around 1.91 lakh trucks and over 16,000 buses. Under the plan, BS-III and older vehicles must be scrapped, while BS-IV vehicles can either be scrapped or sold outside NCR. Owners will receive incentives such as interest subsidies on loans, fuel vouchers and support for electric vehicle purchases. The move comes as studies show that trucks and buses, despite forming only 3 per cent of the vehicle fleet, contribute 36 per cent of PM2.5 emissions in Delhi-NCR. BS-VI vehicles, introduced in 2020, emit significantly lower pollutants than BS-IV vehicles due to stricter emission norms and advanced pollution-control technologies.

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