The Union Cabinet approved a Rs 5,041 crore scheme on Thursday to replace ageing trucks and buses operating across the Delhi-NCR region, targeting one of the most persistent sources of air pollution in India's capital corridor. The programme offers subsidies to commercial vehicle owners who scrap their old diesel trucks and buses and purchase newer, cleaner models meeting stricter emission standards.
What the scheme offers vehicle owners
The funding covers commercial diesel vehicles over 10 years old registered in Delhi, Gurugram, Faridabad, Ghaziabad, Noida, and surrounding areas. Owners who scrap their vehicles at government-authorised centres receive subsidies worth up to 40 percent of the cost of a new truck or bus. For a large truck, that subsidy can reach Rs 10 lakh. Bus operators qualify for up to Rs 3 lakh. The vehicle must be scrapped entirely rather than sold for continued use elsewhere.
Transport ministry officials confirmed the scheme applies only to commercial freight and passenger vehicles. Private cars fall outside the programme's scope. The government estimates roughly 50,000 heavy diesel vehicles currently plying Delhi-NCR roads qualify for replacement under these criteria.
Why Delhi-NCR was chosen
Delhi consistently records some of the worst air quality among major global cities. particulate matter readings in the capital regularly exceed safe limits by several multiples during winter months. Vehicles contribute an estimated 30 percent of the city's PM2.5 pollution, with heavy diesel trucks and buses forming the largest share of vehicle emissions. The Rs 5,041 crore allocation represents the largest single investment yet directed at tackling commercial vehicle pollution in the region.
Environmental researchers at the Centre for Science and Environment have documented that trucks older than 15 years emit roughly 10 times more pollutants per kilometre than vehicles meeting current Bharat Stage VI norms. Removing these vehicles from regional roads could cut commercial vehicle emissions in Delhi-NCR by a substantial margin, according to preliminary government modelling.
Who pays and how it works
The Union government provides 75 percent of the scheme's funding, with the remaining 25 percent coming from state governments in Haryana, Uttar Pradesh, and Rajasthan for vehicles registered in portions of those states falling within the NCR boundary. Vehicle owners must apply through the transport ministry's unified portal. Once approved, they have 180 days to complete the scrapping process at an authorised centre and purchase a replacement vehicle meeting BS-VI standards.
The programme operates alongside existing measures under the Graded Response Action Plan, which imposes temporary restrictions on construction activity and non-essential vehicle movement during severe pollution episodes. Unlike those emergency measures, this scheme aims for a permanent reduction in the pollution baseline rather than temporary improvements during crisis periods.
Community reaction in the capital region
Residents in areas like Mayur Vihar and Gurugram Sector 62, where heavy trucks routinely pass through residential neighbourhoods, welcomed the announcement. Several families reported members with respiratory conditions requiring constant medication. A residents' welfare association in East Delhi has campaigned for three years to reroute truck traffic away from densely populated corridors, arguing that exhaust from passing lorries creates a health hazard comparable to industrial emissions.
Small transport operators expressed mixed views. Many welcome the subsidy but worry about the gap between the scrapping incentive and the full cost of a new BS-VI compliant truck. Financing new vehicles at current interest rates presents challenges for owner-drivers running fleets of two or three vehicles. The transport ministry indicated banks have been asked to offer preferential loans for scheme participants, though specific terms remain under discussion.
Timeline for implementation
The transport ministry must finalise operational guidelines within 45 days. Vehicle registration authorities in each participating state will then begin accepting applications. The scheme runs for an initial period of two years, after which the Cabinet will review results and decide whether to extend or modify the programme. Officials set a target of replacing 30,000 vehicles within the first year.
Scrapping certificates from authorised centres will be verified against the Vahan vehicle database to prevent fraudulent claims. Any vehicle already registered for scrapping under existing central government programmes cannot receive additional subsidy under this scheme. Officials estimate the scheme will create demand for roughly 30,000 new commercial vehicles across participating states.
What comes next
Transport ministry officials will hold consultations with state transport departments in Delhi, Haryana, Uttar Pradesh, and Rajasthan over the next three weeks to coordinate implementation. The unified portal for applications is expected to go live by early next month. Vehicle owners seeking to participate should gather vehicle registration documents and obtain estimates from authorised scrapping centres, as these will be required at the time of application.
Unlike those emergency measures, this scheme aims for a permanent reduction in the pollution baseline rather than temporary improvements during crisis periods. The transport ministry indicated banks have been asked to offer preferential loans for scheme participants, though specific terms remain under discussion.
