The Union Cabinet chaired by Prime Minister Narendra Modi on 3 June 2026 approved a landmark two year Delhi NCR Clean Mobility Scheme with a total financial outlay of Rupees 9585 crore aimed at accelerating the replacement of older polluting commercial vehicles and reducing air pollution across the National Capital Region. The Central Government will contribute Rupees 5041 crore while the four participating states namely Delhi Haryana Rajasthan and Uttar Pradesh will provide an estimated Rupees 1601 crore in motor vehicle tax concessions. The scheme will be implemented by the National Capital Region Planning Board under the Ministry of Housing and Urban Affairs.
The programme targets owners of about 2.07 lakh commercial vehicles including 1.91 lakh trucks and over 16000 buses that comply only with BS IV or earlier emission standards by enabling their replacement with BS VI compliant vehicles or electric vehicles. Incentives include a five per cent interest subvention on bank loans for five years monthly fuel vouchers worth up to Rupees 4800 depending on vehicle category and lump sum incentives linked to electric vehicle purchases or Certificate of Deposit trading under the existing vehicle scrappage framework.
In the same meeting the Cabinet also approved one time budgetary support of up to Rupees 10000 crore for Oil Marketing Companies to stabilise aviation turbine fuel prices for scheduled Indian airlines on domestic and international routes and cleared upgradation of the Khagaria Purnea section of NH 31 and NH 231 in Bihar to four lanes along with widening of two national highway stretches in Madhya Pradesh. Prime Minister Modi hailed the decisions as transformative for clean mobility connectivity and aviation competitiveness.