First OEMs sign on to the Delhi-NCR old truck and bus replacement scheme for cleaner vehicles

Ashok Leyland and Switch Mobility become the first manufacturers to offer an 8% discount under a scheme that — with central interest subvention and state tax waivers — incentivises scrapping BS-IV trucks and buses for BS-VI or electric ones to cut NCR pollution.

What happened

• The Ministry of Road Transport and Highways (MoRTH) signed the first Memorandum of Understanding (MoU) under the Government's scheme for replacement of old trucks and buses in the Delhi-NCR region.
• Ashok Leyland, along with its subsidiary Switch Mobility, became the first Original Equipment Manufacturers (OEMs) to partner the Government for the scheme's implementation.
• The companies will provide an 8% discount on the ex-showroom price of eligible trucks and buses; for electric vehicles, the discount is capped at the discount for an equivalent ICE vehicle of the same gross-vehicle-weight category.
• Beyond the OEM discount, the Central Government will provide 5% interest subvention and fixed monthly fuel vouchers for five years, while participating State Governments will give up to 100% motor-vehicle-tax concession for ten years and waive registration fees.
• The scheme incentivises owners of BS-IV or older trucks and buses registered in Delhi-NCR to replace them with BS-VI (or stricter) emission-compliant or electric vehicles — to cut vehicular pollution and modernise fleets; more OEMs are expected to join.

For Prelims

• Bharat Stage (BS) norms: India's emission standards (based on Euro norms). BS-VI (rolled out nationwide in April 2020) is far cleaner than BS-IV (e.g. much lower sulphur/NOx/PM) — replacing BS-IV with BS-VI/EVs sharply cuts pollutants.
• Vehicle scrappage policy: India's Voluntary Vehicle Fleet Modernisation Programme (scrappage policy, 2021) phases out old, polluting vehicles via fitness/age criteria and Registered Vehicle Scrapping Facilities (RVSFs); old-vehicle replacement schemes complement it.
• Delhi-NCR air pollution: NCR sees severe winter pollution; bodies like the Commission for Air Quality Management (CAQM) and tools like GRAP (Graded Response Action Plan) target sources including older diesel vehicles.
• EV push: Electric trucks/buses tie into schemes like PM E-DRIVE and PM-eBus Sewa; this scheme caps the EV discount at the equivalent ICE level to avoid double-subsidy.
• Interest subvention: A government-borne reduction in the interest rate on a loan (here 5%), lowering the buyer's financing cost — a demand-side incentive.
• Ex-showroom vs on-road price: 'Ex-showroom' excludes registration, road tax and insurance; the discounts/waivers here span both the ex-showroom price and registration/road tax.
• Don't confuse: This is a targeted Delhi-NCR truck/bus replacement scheme (pollution-driven fleet modernisation) — distinct from the nationwide scrappage policy, though complementary; it covers commercial vehicles, not private cars.

For Mains

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