Old trucks, buses to be replaced with EVs in Delhi-NCR
What's the story
The Indian government is likely to announce an incentive scheme soon, aimed at replacing old polluting trucks and buses in the Delhi-NCR region. The plan, which is still being finalized, seeks to promote cleaner fuel or electric vehicles. It proposes interest subsidies and GST waivers for purchasing new vehicles that meet higher emission standards in exchange for replacing older ones.
Coverage
Scheme to cover both private and government vehicles
The proposed scheme will cover both private and government buses registered in Delhi-NCR. These would be replaced with BS-VI and electric buses. For trucks, all older models would be replaced with BS-VI compliant ones. To facilitate this transition, the government is considering providing a substantial interest subsidy to eligible beneficiaries who want to buy a new vehicle after selling their old one.
Additional incentives
GST waiver and manufacturer discounts under consideration
Along with the interest subsidy, the government is also mulling a GST waiver on new vehicles purchased after replacing old ones. The idea is to encourage more people to switch to cleaner vehicles. The government has approached bus and truck manufacturers for possible discounts on the price of new vehicles, given that this would create higher demand for buses and trucks in Delhi-NCR.
Prevention measures
Government's strategy to prevent misuse of the scheme
The government is working on a framework to ensure that vehicles bought under this incentive scheme are only used in Delhi-NCR, preventing any possible misuse. This will be done by strengthening the monitoring system for commercial and transport vehicles through mandatory installation and functioning of Vehicle Location Tracking System (VLTS). Once this incentive scheme is implemented, stricter enforcement will be imposed to restrict entry of older commercial vehicles into the region.