New Delhi, June 16 (APAC Media): In a significant move aimed at reducing vehicular emissions and modernising commercial fleets in the National Capital Region, the Ministry of Road Transport and Highways (MoRTH) has signed the first Memorandum of Understanding (MoU) under the Government of India’s vehicle replacement scheme with Ashok Leyland and its electric mobility arm, Switch Mobility.
With the agreement, Ashok Leyland and Switch Mobility have become the first Original Equipment Manufacturers (OEMs) to partner with the government in implementing the initiative, which seeks to replace older, polluting commercial vehicles operating in Delhi-NCR.
8% Discount on New Trucks and Buses
Under the agreement, eligible vehicle owners purchasing new trucks or buses through the scheme will receive an 8 per cent discount on the ex-showroom price from Ashok Leyland and Switch Mobility.
For electric vehicles, the discount will be capped at the level applicable to a corresponding Internal Combustion Engine (ICE) vehicle within the same Gross Vehicle Weight (GVW) category.Â
The initiative is aimed at commercial vehicles operating in Delhi-NCR that comply with Bharat Stage-IV (BS-IV) or older emission standards.
Owners replacing these vehicles with Bharat Stage-VI (BS-VI) compliant models or electric vehicles will be eligible for a range of incentives offered by the Central Government.
Multiple Financial Incentives for Fleet Owners
In addition to the OEM discount, the Central Government will provide a 5 per cent interest subvention on vehicle loans.
Eligible beneficiaries will also receive fixed monthly fuel vouchers for a period of five years, helping reduce operational expenses and encouraging faster adoption of cleaner vehicles.
Participating state governments will offer additional benefits, including up to 100 per cent exemption on motor vehicle tax for ten years and a complete waiver of registration charges for eligible vehicle owners.
Push for Cleaner Transportation in Delhi-NCR
The Ministry said the incentive package has been designed to make fleet replacement financially attractive while addressing the growing challenge of air pollution in the Delhi-NCR region.
Older commercial vehicles, particularly trucks and buses operating under outdated emission norms, are considered among the major contributors to poor air quality.
By facilitating the transition from BS-IV and older vehicles to BS-VI-compliant or electric alternatives, the scheme is expected to significantly reduce harmful emissions and support cleaner, more sustainable transportation.
Part of Government’s Broader Air Quality Strategy
The vehicle replacement programme forms part of the Government’s larger efforts to improve air quality, reduce transport-related pollution and accelerate the adoption of environmentally friendly mobility solutions.
Officials believe the initiative will not only modernise commercial fleets but also contribute to long-term environmental and public health benefits across the National Capital Region.
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