Overview
- The Union Cabinet approved the plan on Wednesday, June 3, 2026, setting a total outlay of Rs 9,585 crore to accelerate replacement of about 2.07 lakh commercial vehicles in Delhi‑NCR.
- The funding package includes Rs 5,041 crore from the central government plus an estimated Rs 1,601 crore in state tax concessions and a mix of interest subvention, fuel vouchers and manufacturer discounts to lower both purchase and running costs.
- Owners of BS‑III and older vehicles must be scrapped at registered facilities while BS‑IV vehicles can be scrapped or sold only outside the NCR to prevent polluting vehicles from returning to Delhi’s air shed.
- Delhi‑specific rules require replacement light goods vehicles to be electric and buses to run on BS‑VI CNG or be fully electric, and government-owned vehicles are excluded from benefits.
- Operational rollout will hinge on a digital enrolment portal, district‑level processing by collectors and oversight by an Empowered Committee chaired by the Cabinet Secretary, with experts warning that true air‑quality gains depend on strict scrappage, tight monitoring and preventing resale leakage.