Delhi and NCR States to Offer 100% Road Tax Waiver on Clean-Fuel Trucks and Buses

The Delhi government, alongside neighbouring National Capital Region (NCR) states, is set to notify a policy offering a 100% motor vehicle tax concession for transport operators who scrap their old pre-BS-VI heavy commercial vehicles to purchase new trucks and buses running on clean fuel. Mahmood Ahmed, Additional Secretary in the Union Road Transport Ministry, announced the upcoming notification on Monday during an event focused on cleaner freight in Delhi.

The 100% road tax waiver is a key incentive under the 'Parivartan' scheme, which was recently approved by the Union Cabinet. The scheme aims to phase out old, polluting trucks and buses in favour of cleaner alternatives. According to Ahmed, the ministry has held discussions with the state governments of Delhi, Haryana, Uttar Pradesh, and Rajasthan, and these states are expected to officially notify the tax concession in the coming days and weeks.

In addition to the state-level tax waivers, the Union Road Transport Ministry has secured financial support from the automotive industry. Ahmed revealed that the ministry has signed Memorandums of Understanding (MoUs) with vehicle manufacturers. Under these agreements, the manufacturers have committed to offering an 8% discount on the ex-showroom price of new clean-fuel commercial vehicles for buyers participating in the scheme.

To drive local adoption, the ministry is working closely with local administrations across the region. Officials are currently in talks with 35 to 37 district collectors throughout the NCR. The ministry is also involving lead bank coordinators at the district level to directly reach out to local truck and bus owners and persuade them to onboard the Parivartan scheme.

Addressing the ongoing campaign for electric vehicles, Ahmed clarified that the ministry does not want to look at a single solution for all transport challenges. Instead, he stated that a "bouquet of solutions" is the need of the hour, ensuring that the customer has the ultimate say in their vehicle choice. Ahmed emphasized that the government's strategy for modernising the country's vehicle fleet relies on supportive incentives rather than punitive measures.