New Delhi: Electric bus manufacture Olectra Greentech Ltd has signed a memorandum of understanding (MoU) with the Ministry of Road Transport and Highways (MoRTH) to participate in the Centre’s vehicle replacement scheme aimed at phasing out older trucks and buses in the Delhi-NCR region.
The agreement has been signed under the Scheme for Support to the National Capital Region Planning Board (NCRPB) for Replacement of Old Trucks and Buses in the Delhi-NCR area, the company posted at (X) twitter.
The scheme seeks to replace BS-IV and older-generation trucks and buses operating in the National Capital Region with BS-VI-compliant or electric vehicles as part of the government’s efforts to reduce vehicular emissions, improve air quality and promote sustainable transport.
Under the agreement, Olectra Greentech will offer an 8 per cent discount on the ex-showroom price of eligible trucks and buses purchased under the scheme through its authorised dealership network in Delhi-NCR.
For electric vehicles, the discount will be capped at the level applicable to an equivalent internal combustion engine (ICE) vehicle in the same gross vehicle weight (GVW) category.
Apart from the discount offered by participating original equipment manufacturers (OEMs), the Central Government will provide a 5 per cent interest subvention and fixed monthly fuel vouchers for five years to eligible beneficiaries.
Participating state governments will also extend up to 100 per cent concession on motor vehicle tax for 10 years and waive registration fees for eligible beneficiaries under the scheme.
With Olectra Greentech joining the initiative, the number of vehicle manufacturers participating in the programme has risen to ten.
Other OEMs that have signed MoUs with the government include Ashok Leyland, Switch Mobility, Tata Motors, Mahindra & Mahindra, SML Mahindra, Daimler India Commercial Vehicles (DICV), Volvo Eicher Commercial Vehicles (VECV), Force Motors and EKA Mobility.
According to the government, the participating manufacturers together account for more than 95 per cent of the trucks and buses market, ensuring broad industry coverage for implementation of the vehicle replacement scheme in the Delhi-NCR region.
Commenting on the development, Olectra Greentech said the initiative marks an important step towards replacing ageing commercial vehicles with cleaner and future-ready mobility solutions. The company said it remains committed to providing reliable electric mobility solutions that contribute to lower emissions, improved air quality and sustainable urban transport.