New Delhi, June 03: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹9,585 crore clean mobility scheme aimed at accelerating vehicle replacement and reducing air pollution across the Delhi-NCR region.
The two-year programme seeks to encourage owners of older trucks and buses complying with BS-IV or earlier emission standards to switch to cleaner BS-VI-compliant or electric vehicles (EVs), supporting the government’s broader strategy to improve air quality and promote sustainable transportation.
The scheme carries a total financial outlay of ₹9,585 crore, including ₹5,041 crore from the Central Government and an estimated ₹1,601 crore in tax concessions from participating state governments.
The initiative will be funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs and implemented by the Ministry of Road Transport and Highways and the Ministry of Petroleum and Natural Gas in partnership with Delhi, Haryana, Rajasthan and Uttar Pradesh.
According to the government, the scheme is expected to benefit around 2.07 lakh vehicle owners, including approximately 1.91 lakh trucks and 16,329 buses operating in the Delhi-NCR region.
Under the programme, BS-III and older vehicles must be scrapped at authorised Registered Vehicle Scrapping Facilities. BS-IV vehicles can either be scrapped or sold outside the NCR region in non-National Clean Air Programme (NCAP) cities and towns. Eligible owners must subsequently purchase and register a BS-VI or stricter emission-compliant vehicle, or an electric vehicle, within NCR.
Special provisions apply in Delhi, where light goods vehicles purchased under the scheme must be electric, while buses will be permitted only in BS-VI CNG or electric variants. Government-owned vehicles are excluded from the programme.
To encourage participation, the Centre will provide a 5% interest subvention on vehicle loans for five years, monthly fuel vouchers worth up to ₹4,800 depending on vehicle category, and lump-sum incentives linked to EV purchases or Certificate of Deposit trading.
State governments will support the initiative through registration fee waivers, motor vehicle tax concessions of up to 100% for new vehicles and 50% for used vehicles for a period of 10 years. Pending liabilities on old vehicles participating in the scheme will also be waived.
In addition, participating automobile manufacturers will offer discounts of 8% on the ex-showroom prices of eligible vehicles.
The entire programme will be administered through a digital platform enabling real-time eligibility verification, automated incentive processing, fuel voucher distribution and monitoring of environmental outcomes.
While enrolment under the scheme will remain open for two years, central benefits will continue for five years from the date of registration of the new vehicle, ensuring long-term support for vehicle owners.
The government expects the initiative to significantly reduce vehicular emissions, accelerate the adoption of cleaner transportation technologies and contribute to sustained improvements in air quality across the Delhi-NCR region, where air pollution continues to pose a major public health challenge.
