Benefits on EV purchase, fuel vouchers: Centre approves scheme to cut pollution levels in Delhi

PRime government minister Narendra Modi on midweek proclaimed that the unification storage locker has approved a scheme aimed at reducing pollution levels in Delhi–NCR. He added that the initiative will improve air quality, promote cleaner transport, and benefit vehicle owners by supporting the shift to less polluting vehicles. Here’s everything you need to know about the scheme:The two-year scheme is designed to cut air pollution in the Delhi–NCR region and promote cleaner mobility. It will be funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs (MoHUA).The scheme will be implemented 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 for the scheme is ₹9,585 crore, which includes ₹5,041 crore from the Central Government and additional support through tax concessions from participating states. The scheme is expected to benefit around 2.07 lakh vehicle owners, including about 1.91 lakh truck owners and over 16,000 bus owners.The scheme will be overseen by an Empowered Committee chaired by the Cabinet Secretary, with members including the CEO of NITI Aayog, Secretaries of MoHUA, MoRTH, MoPNG, DFS, and Chief Secretaries of participating NCR states, while the Member Secretary of NCRPB will serve as the member convenor.At the district level, implementation and monitoring will be carried out by District Collectors and District Magistrates.BS-IV vehicles to be scrappedUnder 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 vehicles, including electric vehicles (EVs). By accelerating the transition to cleaner transport technologies, the scheme is expected to significantly reduce vehicular emissions and contribute to improved air quality across the Delhi–NCR region.BS-III and older vehicles must be scrapped at registered vehicle scrapping facilities. BS-IV vehicles can either be scrapped or sold outside the NCR region. Owners will then be required to purchase BS-VI or cleaner vehicles, or electric vehicles within NCR, the press release said.Why this scheme?As per the report on “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), published in August 2018, the transport sector contributes 14 per cent of PM 2.5, 40 per cent of Carbon Monoxide (CO), and 63 percent of Nitrogen Oxide (NOx) emissions in the Delhi-NCR. Within the transport sector, trucks and buses account for 36 percent of PM 2.5 emissions with only 3 per cent of the total fleet.Hence, the newer fleet is expected to reduce vehicular pollution substantially, the press release said.Benefits 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 ₹4,800 depending on the vehicle category. It will also offer lump-sum incentives for electric vehicle purchases and benefits through Certificate of Deposit trading.State governments will waive registration fees and extend up to 100 per cent exemption on motor vehicle tax for new vehicles, and 50 per cent concession for used vehicles for a period of 10 years. They will also waive pending liabilities on old vehicles that are enrolled under the scheme.Participating automobile original equipment manufacturers (OEMs) will offer an 8 per cent discount on ex-showroom prices of eligible vehicles.The scheme will be implemented through a fully digital integrated portal, which will enable real-time eligibility verification, automated processing of interest subvention claims, monthly crediting of fuel vouchers, and monitoring of emissions reduction outcomes.Central government benefits will continue for five years from the date of registration of the new vehicle, ensuring long-term impact beyond the two-year enrolment period.