A big initiative of the Union Cabinet to cut air pollution in the Delhi-NCR region by incentivising people to replace old commercial vehicles with environmentally-friendly and efficient vehicles has been approved. It is a voluntary Phase-out Program of BS-III and older trucks/buses to be replaced by Bharat Stage-VI (BS-VI) compliant and EV models.
There are a variety of incentives available under the scheme to help to encourage the uptake. For purchase of vehicles, eligible applicants will be given 5% interest subsidy for five years on their loan amounts, in addition to up to ₹4,800 a month towards fuel costs. On top of this, auto makers have pledged an 8% discount on the ex-showroom price of new cars in the program. The owners have to remove their old cars from the market via a recognized vehicle-scrapping hub.
Delhi, Haryana, Rajasthan and Uttar Pradesh governments will also help the scheme by exempting registration fees and giving generous concessions in motor vehicle taxes. Any new car acquired under the scheme might be eligible for 100% tax exemption, with tax relief valued as much as 50% for a 10-year period for used cars. The financing of the outstanding debts to be settled will also be excluded in case of demolition.
Union minister Ashwini Vaishnaw said the scheme has the potential to advance the replacement of not just over 200,000 but maitraja air polluting vehicles and greatly enhance the air quality in the region.
The development has been hailed by environmental consultants as a positive step towards addressing the issue of air pollution in the city, especially since older trucks are a major source of pollution in urban areas. The government is looking to significantly cut the polluting emissions and enhance public health through a faster rollout of cleaner BS VI and electric vehicles in the NCR.