Delhi-NCR’s old truck and bus replacement scheme is gaining momentum, with major vehicle makers joining hands with the Government of India. The scheme aims to reduce pollution and modernize commercial fleets by replacing older BS-IV and older vehicles with cleaner BS-VI or electric vehicles.
The government has signed MoUs with major manufacturers including Ashok Leyland, Switch Mobility, Tata Motors, Mahindra & Mahindra and SML Mahindra. Together, these companies account for about 75% of India’s truck and bus market.
Under the scheme, participating manufacturers will offer an 8% discount on the ex-showroom price of eligible new trucks and buses. For electric vehicles, the discount will be capped at the level applicable to a comparable ICE vehicle in the same GVW category.
The Central Government will provide a 5% interest subsidy on vehicle loans for five years, along with fixed monthly fuel vouchers. State Governments in Delhi-NCR will offer up to 100% exemption on motor vehicle tax for 10 years and waive registration fees for eligible buyers.
The Union Cabinet has approved a ₹9,585 crore package for the two-year scheme. Of this, ₹5,041 crore will come from the Centre, while participating states will contribute about ₹1,601 crore through tax concessions.
The scheme is expected to benefit around 2.07 lakh commercial vehicles, including 1.91 lakh trucks and 16,329 buses, across Delhi, Haryana, Rajasthan and Uttar Pradesh. Owners of BS-IV and older vehicles registered in Delhi-NCR will be eligible to participate.
BS-III and older vehicles must be scrapped at authorized facilities, while BS-IV vehicles can either be scrapped or sold outside NCR in non-NCAP cities before purchasing a new eligible vehicle. Vehicle owners can also receive additional incentives through EV purchases or Certificate of Deposit trading, encouraging faster adoption of cleaner transport technologies.
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