Under the agreement, Tata Motors will offer an 8% discount on the ex-showroom price of eligible trucks and buses purchased under the scheme. For electric vehicles, the discount will be capped at the level applicable to an Internal Combustion Engine (ICE) vehicle in the corresponding Gross Vehicle Weight (GVW) category.
The scheme also provides additional incentives for eligible beneficiaries. The Central Government will offer a 5% interest subvention and fixed monthly fuel vouchers for five years. Participating state governments will provide up to 100% concession on motor vehicle tax for a period of 10 years and waive registration fees for eligible beneficiaries.
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Further, Ashok Leyland and Switch Mobility also signed MoUs with the government for the implementation of the scheme. Together, the two companies account for around 50% of the trucks and buses market.
Earlier this month, the Union Cabinet on approved a ₹5,041-crore scheme to phase out over 2 lakh ageing trucks and buses in Delhi-NCR with cleaner Bharat Stage-VI (BS-VI) or electric vehicles (EVs), as part of efforts to curb air pollution in the region.
The scheme targets more than 1.9 lakh trucks and around 16,000 buses currently registered in Delhi-NCR that comply with Bharat Stage-IV (BS-IV) or older emission standards.
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“Analysis showed that 40% of particulate emissions are because of the transportation sector, primarily due to diesel and petrol vehicles operating in the city, whether they are two-wheelers, four-wheelers, buses or trucks,” Information and Broadcasting Minister Ashwini Vaishnaw.
According to the government, Delhi-NCR’s air quality is significantly affected by older diesel trucks and buses. Vehicles compliant with BS-I to BS-IV standards emit 67% more carbon monoxide and 97% more particulate matter than BS-VI vehicles.
The scheme will be implemented by the Ministry of Road Transport and Highways (MoRTH), the National Capital Region Planning Board (NCRPB), and the governments of Delhi, Haryana, Uttar Pradesh and Rajasthan.
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Shares of Tata Motors Passenger Vehicles Ltd ended at ₹365.20, up by ₹4.15, or 1.15%, on the BSE.
