Delhi-NCR Vehicle Owners To Get Subsidies, Discounts Under New Pollution Plan

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Key points generated by AI, verified by newsroom

• Modi announces Rs 9,585 crore scheme reducing Delhi-NCR pollution.
• Targets BS-IV, older vehicles with financial and tax benefits.
• Empowered Committee, digital portal oversee two-year implementation.

Prime Minister Narendra Modi on Wednesday announced that the Union Cabinet has approved a new scheme aimed at reducing pollution levels in the Delhi-NCR region through cleaner mobility and accelerated replacement of older vehicles.

The initiative is designed to improve air quality, promote cleaner transport technologies and support vehicle owners transitioning to less polluting vehicles.

Rs 9,585 Crore Scheme For Cleaner Mobility

The two-year scheme will be funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs (MoHUA).

Implementation will be carried out by the Ministry of Road Transport and Highways (MoRTH) and the Ministry of Petroleum and Natural Gas (MoPNG), in coordination with the governments of Delhi, Haryana, Rajasthan and Uttar Pradesh.

The total financial outlay stands at Rs 9,585 crore, including Rs 5,041 crore from the Central Government along with additional support through tax concessions provided by participating states.

According to the government, the scheme is expected to benefit around 2.07 lakh vehicle owners, including nearly 1.91 lakh truck owners and more than 16,000 bus owners.

Empowered Committee To Oversee Rollout

The scheme will be supervised by an Empowered Committee chaired by the Cabinet Secretary.

The panel will include the CEO of NITI Aayog, Secretaries of MoHUA, MoRTH, MoPNG and the Department of Financial Services (DFS), along with Chief Secretaries of participating NCR states.

The Member Secretary of NCRPB will serve as the member convenor.

At the district level, implementation and monitoring responsibilities will rest with District Collectors and District Magistrates.

BS-IV And Older Vehicles Targeted

Under the scheme, owners of trucks and buses registered in Delhi-NCR that meet BS-IV or older emission standards will be encouraged to scrap or replace their vehicles with BS-VI or cleaner alternatives, including electric vehicles.

The government said the accelerated shift to cleaner transport technologies is expected to significantly reduce vehicular emissions and improve air quality across the region.

BS-III and older vehicles must be scrapped at registered vehicle scrapping facilities, while BS-IV vehicles can either be scrapped or sold outside the NCR region.

Vehicle owners replacing older vehicles will be required to purchase BS-VI or cleaner vehicles, or electric vehicles within NCR.

Why The Scheme Was Introduced

The government cited findings from the August 2018 report titled “Source Apportionment of Particulate Matter (PM 2.5 and PM 10) in the NCR”, prepared by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI).

According to the report, the transport sector contributes 14 per cent of PM 2.5 emissions, 40 per cent of Carbon Monoxide (CO) emissions and 63 per cent of Nitrogen Oxide (NOx) emissions in Delhi-NCR.

Within the transport sector, trucks and buses account for 36 per cent of PM 2.5 emissions despite comprising only 3 per cent of the total fleet.

The government said a newer vehicle fleet is expected to substantially reduce vehicular pollution.

Interest Subsidy, Fuel Vouchers And Tax Relief

Under the scheme, the Centre will provide a 5 per cent interest subsidy on loans for five years, along with monthly fuel vouchers of up to Rs 4,800 depending on the vehicle category.

The government will also provide lump-sum incentives for electric vehicle purchases and benefits through Certificate of Deposit trading.

Participating state governments will waive registration fees and offer up to 100 per cent exemption on motor vehicle tax for new vehicles, along with a 50 per cent concession for used vehicles for a period of 10 years.

Pending liabilities on old vehicles enrolled under the scheme will also be waived.

Participating automobile original equipment manufacturers (OEMs) will offer an 8 per cent discount on ex-showroom prices of eligible vehicles.

Fully Digital Portal For Implementation

The scheme will operate through a fully digital integrated portal that will enable real-time eligibility verification, automated processing of interest subvention claims, monthly crediting of fuel vouchers and monitoring of emissions reduction outcomes.

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The Centre said benefits under the scheme will continue for five years from the registration date of the new vehicle, extending beyond the two-year enrolment period.

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