CSE welcomes direct fleet renewal and electric vehicle integration in Delhi-NCR

Government’s fiscal package targets renewal of heavytruck and bus fleets in Delhi-NCR – these vehicles are 3 per cent of the total fleet, but generate 36 per cent of all vehicular PM emissions 

New Delhi, June 4, 2026: Centre for Science and Environment (CSE) has welcomed the Rs 9,585-crore Union Cabinet scheme for phasing out old buses and trucks,a move that aims to targetthe toxic air of Delhi-NCR. The compressed two-year programme aims to pull roughly 2.07 lakh heavily polluting commercial trucks and buses (BS-IV and older) off the roads. 

To fast-track the transition to clean BS-VI or zero-emission electric vehicles, the scheme unleashes a mix of financial incentives: a 5 per cent interest subvention on vehicle loans, monthly fuel vouchers up to Rs 4,800, an 8 per cent manufacturer discount, and state registration fee waivers coupled with road tax concessions.

"CSE has consistently advocated for an ironclad, well-funded fiscal strategy since the first drafting of the national old vehicle phase out and scrappage rules in 2018-2021. This targeted financial mechanism addresses the economic barriers faced by fleet operators. When combined with broader bus electrification programmes and the PM E-DRIVE scheme’s support for 1,100 electric trucks in Delhi, this package becomes a game-changer capable of eliminating the most toxic segment of vehicular PM and NOx emissions in the region. It pivots our regulatory landscape away from a weak, voluntary model into an aggressive, incentivised track to protect public health," says Anumita Roychowdhury, executive director, CSE. 

Disproportionate toxic footprint of Heavy-Duty Vehicles (HDVs): This decision addresses a critical environmental challenge, says CSE. As the official press release notes that as per the 2018 ARAI-TERI source apportionment study for the NCR, the transport sector accounts for 14per cent of PM.5, 40 per cent of carbon monoxide (CO), and a staggering 63 per cent of nitrogen oxide emissions. In the transport sector, heavy-duty trucks and buses are just 3 per cent of the total vehicle fleet, but they generate 36 percent of all vehicular PM emissions. In fact, a one pre-BS heavy-duty vehicle pollutes as much as 14 modern, BS-VI compliant vehicles. Even a newer BS-IV model emits 2.7 times more than its BS-VI counterpart. 

Older legacy vehicles lack advancedand efficient emission control systems like BS-VI variants, such as Diesel Particulate Filters (DPF) and Selective Catalytic Reduction (SCR). As engines age, components undergo severe wear-and-tear, causing incomplete combustion and massive releases of emissions. Replacing old vehicles that met weaker emissions standards compared to the current BSVI vehicles standards highlights the critical importance of this targeted phase-out:

• A single 15-year-old legacy diesel commercial vehicle emits 11 times higher particulate matter (PM) and six times higher nitrogen oxides (NOx) than a modern compliant BS-VI diesel vehicle.
• An old BS-I heavy-duty diesel truck is designed to emit up to 35 times higher PM compared to a new BS-VI vehicle.
• Legacy BS-III diesel trucks emit up to 15 times more PM than compliant BS-VI models.
• Compared to a compliant BS-IV variant, a 15-year-old diesel model emits 7.6 times more PM and 3.4 times more NOx. 

Direct support for fleet renewal more important when vehicle inspection programmes are not yet robust: The timing of this targeted financial intervention is vital. Roychowdhury says CSE's evaluation highlights that “India's technology-driven, fitness-based vehicle retirement framework currently suffers from severe structural gaps. The national network is constrained by a stark shortage and uneven distribution of automated infrastructure, with only 181 Automated Testing Stations (ATS) and 134 Registered Vehicle Scrapping Facilities (RVSFs) operational nationwide”. 

Moreover, current testing systems remain trapped in severe inefficiencies:

• The ATS leniency trap: Out of nearly 2.5 million tests logged on the Ministry of road transport and highways’ (MoRTH's) Automated Fitness Management System (AFMS) portal, an astonishing 98 per cent passed as fit, with 2 per cent declared unfit and a negligible fraction (685 vehicles) successfully flagged as End-of-Life Vehicles (ELVs).
• Weak emission testing: Current fitness inspections continue to rely on obsolete Pollution Under Control (PUC) protocols that only examine idle smoke density or basic carbon monoxide. They are entirely inadequate for advanced screening and cannot measure critical load-based pollutants such as NOx or PM.
• The retest loophole: The database gives owners up to 180 days to complete repairs and undergo multiple retests, turning the automated infrastructure into a temporary repair-and-return track rather than a strict scrappage identifier. 

At a time when on-road systems cannot yet deploy advanced screening -- such as dynamic chassis dynamometer testing or real-time road measurements via Remote Sensing Devices (RSD) to catch gross polluters -- widespread fiscal incentives are the most effective lever to guarantee immediate emission reductions by permanently pulling high-emitting trucks off the road. 

The Rs 9,585-crore architecture addresses the traditional economic barriers that prompt fleet owners to evade formal de-registration in favour of the informal sector. 

Address real-world emissions: While disciplined implementation of this scheme is critical to improving regional air quality, true emissions control hinges on rigorous on-road monitoring. To rein in real-world driving emissions from internal combustion engines, Delhi-NCR must integrate advanced technologies like remote sensing devices (RSD) and On-Board Diagnostics (OBD) systems. Past Delhi pilot studies exposed the technical reality of high on-road emissions. Even on-road CNG vehicles emit substantially higher real-world driving emissions than expected under urban loads. Says Roychowdhury: “Ultimately, the region needs a much larger, more ambitious thrust toward the wholesale electrification of both bus and truck fleets to permanently eliminate tailpipe toxic exposures.” 

For more information, interviews etc, please contact Sukanya Nair of The CSE Media Resource Centre: sukanya.nair@cseindia.org, 8816818864.