New Scheme to Combat Air Pollution in Delhi-NCR Launches
The Union Cabinet, under Prime Minister Shri Narendra Modi, has unveiled a pivotal two-year initiative designed to tackle air pollution in the Delhi-NCR region while enhancing cleaner mobility practices. This ambitious plan, which will be funded through the National Capital Region Planning Board (NCRPB) and implemented by the Ministry of Road Transport and Highways (MoRTH) along with the Ministry of Petroleum and Natural Gas (MoPNG), aims to modernize the transportation sector and improve air quality in partnership with the states and union territories of Delhi, Haryana, Rajasthan, and Uttar Pradesh.
With an impressive financial allocation of Rs.9,585 crore—comprising Rs.5,041 crore from the Central Government and an estimated Rs.1,601 crore in tax incentives from participating states—the scheme is designed to encourage owners of trucks and buses adhering to the older BS-IV or earlier emission standards to transition to BS-VI or more stringent emission-compliant vehicles, including electric vehicles (EVs). This transition is expected to drastically cut down vehicular emissions, thereby enhancing air quality across the heavily polluted region.
The Issue of Air Pollution
Air pollution in the Delhi-NCR remains a pressing public health issue, especially during the colder months. A report from the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI), released in August 2018, highlights that the transport sector is responsible for a significant share of air pollution: 14% of PM 2.5, 40% of Carbon Monoxide (CO), and 63% of Nitrogen Oxide (NOx) emissions. Notably, trucks and buses, despite constituting only 3% of the total fleet, account for 36% of PM 2.5 emissions. A single pre-BS heavy-duty vehicle emits pollutants equivalent to 14 BS-VI compliant vehicles, underlining the need for a modern fleet to mitigate pollution.
Scheme Benefits for Vehicle Owners
Approximately 2.07 lakh vehicle owners in the Delhi-NCR area, including 1.91 lakh trucks and 16,329 buses, stand to benefit from this initiative. Under the plan, owners of BS-III or older vehicles must scrap their vehicles at Registered Vehicle Scrapping Facilities, while those with BS-IV vehicles can either scrap them or sell them outside the NCR. They will then be required to purchase and register a BS-VI compliant or electric vehicle within the NCR. In Delhi, light goods vehicles purchased under the scheme must be electric, while buses can only be CNG or electric BS-VI vehicles. Government vehicles are excluded from this scheme.
Incentives and Implementation
The Central Government will offer incentives such as a 5% interest subvention on loans for five years, monthly fuel vouchers of up to Rs.4,800 contingent on the vehicle category, as well as lump-sum benefits for EV purchases. Additionally, state governments will waive registration fees and provide up to 100% motor vehicle tax concessions for new vehicles and 50% for used ones over a span of 10 years. Pending liabilities on old vehicles that are scrapped as part of this scheme will also be waived.
Participating automotive original equipment manufacturers (OEMs) will offer discounts of 8% on ex-showroom prices for new vehicles. The entire process will be digitized through an integrated portal, facilitating real-time eligibility checks, automatic interest subvention claims, and monitoring of pollution reduction outcomes. The incentives from the Central Government will remain effective for five years from the date of registration, ensuring a lasting impact beyond the two-year program enrollment period.
Oversight and Monitoring
An Empowered Committee, chaired by the Cabinet Secretary, will oversee the implementation of the scheme. This committee will include the CEO of Niti Aayog and secretaries from MoHUA, MoRT&H, MoPNG, and the DFS, along with the Chief Secretaries of participating states in the Delhi-NCR. Additionally, district-level monitoring will be conducted by District Collectors and District Magistrates to ensure effective execution of the scheme.
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