Delhi govt approves incentives to replace old trucks, buses with EVs and BS-VI vehicles

The Delhi Cabinet has approved the implementation of the Centre’s Parivartan scheme, paving the way for financial incentives to replace older commercial vehicles with cleaner BS-VI and electric models as part of efforts to curb transport-related pollution in the national capital.

Chief Minister Rekha Gupta said the scheme aims to phase out old, polluting trucks and buses by encouraging owners to switch to vehicles that meet BS-VI emission norms or are fully electric. The programme will be implemented by the Union Ministry of Road Transport and Highways.

Advertisement

Under the scheme, owners who scrap BS-IV or older Light Goods Vehicles (LGVs) and purchase new electric LGVs will receive a 100 per cent exemption from motor vehicle tax for 10 years and a complete waiver of registration fees from the Delhi government.

They will also be eligible for a 5 per cent interest subsidy, an 8 per cent discount from the vehicle manufacturer and a one-time benefit equivalent to the value of a fuel voucher.

Those opting for a used electric LGV instead of a new one will receive a 50 per cent exemption from motor vehicle tax for 10 years, along with the interest subsidy and fuel voucher benefit.

The scheme extends similar benefits to owners of BS-IV or older Medium Goods Vehicles (MGVs) and Heavy Goods Vehicles (HGVs), replacing them with new BS-VI or electric commercial vehicles. Buyers of used BS-VI or electric goods vehicles will receive a 50 per cent tax exemption for 10 years, a 5 per cent interest subsidy and the one-time fuel voucher benefit.

Old buses have also been brought under the scheme. BS-IV and older buses can be replaced only with BS-VI CNG or electric buses, with owners becoming eligible for the same incentives offered for goods vehicles.

The government said eligible vehicles being scrapped will also receive relief from outstanding road tax and fitness penalty liabilities accumulated for more than a year.

In a relaxation under the scheme, BS-IV commercial vehicles identified for replacement will not have to be scrapped compulsorily. They may instead be sold in non-National Clean Air Programme (NCAP) cities outside the National Capital Region.

According to the Delhi government, around 2.07 lakh truck and bus owners across Delhi-NCR are expected to benefit from the scheme.

The Chief Minister said the initiative would modernise the commercial vehicle fleet, strengthen the capital’s clean transport system and complement the objectives of the Delhi EV Policy 2026.

Under the scheme, all Light Goods Vehicles purchased in Delhi must be electric, while only BS-VI CNG or electric buses will be eligible for operation.

(With inputs from ANI)