Union Cabinet approved a ₹9,585 crore clean mobility scheme for Delhi-NCR

Union Cabinet approved a ₹9,585 crore Clean Mobility Scheme for Delhi-NCR to replace old polluting commercial vehicles with cleaner alternatives and reduce transport-sector emissions, a major contributor to the region’s air pollution.

More on the News

¨     The scheme will be implemented for two years and funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs. It will be jointly implemented by the Ministry of Road Transport and Highways (MoRTH) and the Ministry of Petroleum and Natural Gas (MoPNG).

¨     The initiative targets around 2.07 lakh old trucks and buses operating in Delhi-NCR. The Centre will contribute ₹5,041 crore, while participating states—Delhi, Haryana, Uttar Pradesh and Rajasthan—will provide approximately ₹1,600 crore through tax concessions.

¨     The scheme has been designed to address vehicular pollution, as the transport sector contributes around 14% of PM2.5, 40% of carbon monoxide (CO) and 63% of nitrogen oxide (NOx) emissions in Delhi-NCR. Notably, trucks and buses account for 36% of transport-sector PM2.5 emissions despite constituting only about 3% of the vehicle fleet.

Key Features of the Scheme

¨     Financial Incentives: The Centre will provide 5% interest subvention on vehicle loans for five years, monthly fuel vouchers of up to ₹4,800 depending on vehicle category, and lump-sum incentives for electric vehicle purchases or Certificate of Deposit trading.

¨     State-Level Support: Participating states will waive registration fees, provide up to 100% motor vehicle tax concession for new vehicles and 50% concession for used vehicles for ten years, besides waiving pending liabilities of old vehicles being replaced.

¨     Industry Participation: Automobile manufacturers (OEMs) participating in the scheme will offer 8% discounts on ex-showroom prices of eligible replacement vehicles.

¨     Cleaner Fleet Transition: The scheme promotes replacement of older vehicles with BS-VI, CNG, LNG and electric vehicles, thereby accelerating the transition towards clean mobility in the NCR.

Significance

¨     Improving Air Quality: By targeting the most polluting segment of the vehicle fleet, the scheme is expected to significantly reduce emissions of PM2.5, NOx and other harmful pollutants.

¨     Accelerating Clean Mobility: The initiative complements India’s broader push towards cleaner fuels, electric mobility and sustainable urban transport systems.

¨     Public Health Benefits: Reduced vehicular pollution can lower the incidence of respiratory and cardiovascular diseases associated with poor air quality in Delhi-NCR.