In a major push to curb vehicular pollution in the National Capital Region (NCR), the Haryana Government has announced incentives to replace nearly 1.08 lakh old commercial vehicles, including around 92,000 trucks and 16,000 buses that comply with BS-IV or earlier emission standards.
The state has notified a 100% exemption from Motor Vehicle (MV) Tax on the purchase of new BS-VI or higher emission standard vehicles, electric vehicles (EVs) and CNG-run trucks and buses. Buyers of used BS-VI, EV or CNG commercial vehicles registered in Haryana’s NCR districts will receive a 50% MV Tax exemption.
The concessions, notified by Additional Chief Secretary, Transport Department, Dr Raja Sekhar Vundru on June 24, will remain valid for 10 years from the date of first registration of the replacement vehicle. The Haryana Cabinet had approved the proposal on June 22 as part of the Centre’s vehicle replacement scheme cleared by the Union Cabinet on June 3.
Eligibility criteria
for exemption
The scheme is applicable to owners of trucks and buses registered in Haryana’s 14 NCR districts that comply with BS-IV or older emission norms.
BS-III and older vehicles must be scrapped at a Registered Vehicle Scrapping Facility (RVSF) operating in Haryana. Owners of BS-IV vehicles can either scrap them at an RVSF or sell them outside the NCR in a non-National Clean Air Programme (NCAP) city or area.
Beneficiaries must purchase and register a replacement vehicle – new or used – meeting BS-VI or higher standards, or powered by electricity or CNG, within the NCR districts of Haryana.
The government has also waived outstanding MV Tax liabilities pending for more than one year on eligible BS-IV or older vehicles participating in the scheme.
Why are trucks
and buses targeted?
Heavy commercial vehicles are among the largest contributors to air pollution in Delhi-NCR. According to a 2018 report by The Energy and Resources Institute (TERI), the transport sector contributes around 14% of PM2.5 emissions, 40% of carbon monoxide emissions and 63% of nitrogen oxide emissions in the region.
Government data suggest that a single pre-BS vehicle emits pollutants equivalent to nearly 14 BS-VI compliant heavy-duty vehicles, while a BS-IV vehicle emits about 2.7 times more than its BS-VI counterpart.
The move also aligns with judicial directions. The National Green Tribunal (NGT) had barred diesel vehicles older than 10 years and petrol vehicles older than 15 years from operating in Delhi-NCR, a decision upheld by the Supreme Court. In January 2024, the apex court directed the Centre to formulate a policy for replacing old heavy-duty diesel vehicles with BS-VI models. Later orders in 2025 provided temporary relief only to BS-IV and newer vehicles from coercive action.
Expected gain for state
According to the Ministry of Finance’s Expenditure Finance Committee, Haryana is expected to forgo about Rs 935.7 crore in tax revenue due to the exemptions. However, increased sales of new commercial vehicles are projected to generate nearly Rs 1,999.6 crore in State GST, resulting in a net gain of around Rs 1,063.9 crore for the state.
Centre’s scheme
Under the Central scheme, commercial vehicle owners replacing old vehicles will receive a 5% interest subsidy on loans for new vehicles. Diesel and CNG vehicle buyers will also receive monthly fuel vouchers of up to Rs 4,800 for five years, while EV buyers will be eligible for a one-time incentive ranging from Rs 64,000 to Rs 2.56 lakh, depending on vehicle category.
Manufacturers will provide an 8% discount on the ex-showroom price of new vehicles. Owners opting not to buy a replacement after scrapping their vehicles can trade their Certificates of Deposit (CoDs).
The Rs 9,585-crore scheme, funded through the National Capital Region Planning Board (NCRPB), aims to replace 1.91 lakh trucks and 16,329 buses across Delhi-NCR. It will be implemented by the Ministries of Road Transport and Highways and Petroleum and Natural Gas.
