Cabinet nod for Rs 9,585-cr scheme to replace old trucks, buses in Delhi-NCR, Pg5

Key Highlights:

• The Union Cabinet approved a two-year ‘cleaner mobility’ scheme with an outlay of Rs 9,585 crore to curb vehicular emissions in Delhi-NCR.
• The scheme incentivizes owners of BS-IV compliant trucks and buses to replace them with BS-VI or electric vehicles.
• Incentives include 5 percent interest subvention from the Centre and up to 100 percent motor vehicle tax concessions from state governments.
• Of the total outlay, the Centre will provide Rs 5,041 crore, with states contributing an estimated Rs 1,601 crore in tax concessions.
• The initiative targets 2.07 lakh vehicle owners in Delhi-NCR and excludes government vehicles.

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Detailed Insights:

• The scheme aims to significantly reduce air pollution in Delhi-NCR, where the transport sector contributes 14 percent of PM 2.5 pollution, 40 percent of carbon monoxide, and 63 percent of nitrogen dioxide emissions.
• Within the transport sector, trucks and buses, despite being only 3 percent of the total fleet, account for 36 percent of PM 2.5 emissions.
• A pre-BS heavy-duty vehicle emits as much as 14 BS-VI compliant vehicles, highlighting the need for vehicle replacement.
• Owners of BS-III or older vehicles are mandated to scrap them at registered facilities, while BS-IV vehicles can either be scrapped or sold outside the National Capital Region (NCR) in Non-National Clean Air Programme (NCAP) cities.
• State governments will also waive pending liabilities on old vehicles participating in the scheme.
• The Centre will offer monthly fuel vouchers worth up to Rs 4,800 depending on the vehicle category, and lump-sum benefits for Electric Vehicle (EV) purchases or certificate of deposit trading.
• The scheme is funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs and implemented in collaboration with Delhi, Haryana, Rajasthan, and Uttar Pradesh.
• In Delhi, Light Goods Vehicles (LGVs) purchased under the scheme must be electric, and buses must be BS-VI CNG or electric only.

Key Concepts Involved:

• Bharat Stage (BS) Emission Standards: Norms set by the Indian government to regulate air pollutants from internal combustion engines in vehicles.
• Interest Subvention: A government subsidy to reduce the effective interest rate on a loan for borrowers.
• National Capital Region Planning Board (NCRPB): A statutory body under the Ministry of Housing and Urban Affairs responsible for planning and promoting balanced development in the NCR.
• PM 2.5: Fine particulate matter with a diameter of 2.5 micrometers or less, a major air pollutant that can penetrate deep into the lungs.
• National Clean Air Programme (NCAP): A government initiative launched in 2019 to reduce air pollution across the country with time-bound targets.