The Centre has signed a Memorandum of Understanding with Bharat Benz, Daimler India Commercial Vehicles, for the replacement of old trucks and buses in the Delhi-NCR region. Under this agreement, eligible trucks and buses purchased under the scheme will receive an 8% discount on the ex-showroom price. For electric vehicles, the discount will be equivalent to that of an Internal Combustion Engine vehicle of the same Gross Vehicle Weight category.
In addition to the 8% discount from OEMs, the Central government will offer a 5% interest subvention and fixed monthly fuel vouchers for five years. State governments participating in the scheme will grant up to a 100% concession on motor vehicle tax for ten years and waive registration fees for eligible beneficiaries.
Various companies including Ashok Leyland, Switch Mobility, Tata Motors, Mahindra and Mahindra, and SML Mahindra have also signed MoUs with the government for the scheme’s implementation. These companies collectively hold an 85% market share in trucks and buses, ensuring extensive coverage for the scheme’s execution.
Union Minister of Road Transport and Highways, Nitin Gadkari, had previously predicted that India’s logistics cost would decrease to 9% with the ongoing rapid development of road infrastructure. Minister Gadkari emphasized the significance of alternative fuels and encouraged the industry to utilize electric trucks for transporting goods from factories to ports.
