New Delhi: Commercial vehicle major Ashok Leyland and its electric mobility arm Switch Mobility on Monday became the first automobile manufacturers to partner with the Centre under a scheme aimed at replacing old trucks and buses in the Delhi-NCR region to curb vehicular pollution and accelerate fleet modernisation.
The Ministry of Road Transport and Highways (MoRTH) signed the first Memorandum of Understanding (MoU) with Ashok Leyland and Switch Mobility for implementation of the recently announced vehicle replacement initiative.
Under the agreement, the two companies will offer an 8 per cent discount on the ex-showroom price of eligible trucks and buses purchased under the scheme. In the case of electric vehicles, the discount will be capped at the level applicable to an equivalent internal combustion engine (ICE) vehicle based on gross vehicle weight (GVW), the ministry said.
The scheme provides a multi-layered incentive package to encourage owners of older commercial vehicles to switch to cleaner and more efficient alternatives. Besides the OEM discount, the Central government will extend a 5 per cent interest subvention and fixed monthly fuel vouchers for a period of five years.
Participating state governments will also provide up to 100 per cent concession on motor vehicle tax for ten years and waive registration fees for eligible beneficiaries, according to the ministry.
The initiative is targeted at owners of trucks and buses registered in Delhi-NCR that comply with Bharat Stage-IV (BS-IV) or older emission norms. These vehicle owners will be encouraged to replace their fleets with Bharat Stage-VI (BS-VI) compliant vehicles or electric vehicles.
The ministry described the signing of the first MoU as a significant step towards operationalising the scheme, which is expected to play a key role in reducing air pollution in the National Capital Region while supporting the adoption of cleaner transport technologies.
More automobile manufacturers are expected to join the programme in the coming days, broadening participation and enhancing the availability of cleaner vehicle options for fleet operators, it added.