The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a landmark two-year scheme designed to curb air pollution and accelerate the transition to cleaner transit across the Delhi–National Capital Region (NCR).

Funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs (MoHUA), the program will be jointly executed by the Ministry of Road Transport and Highways (MoRTH) and the Ministry of Petroleum and Natural Gas (MoPNG). The initiative will operate in direct collaboration with the participating governments of Delhi, Haryana, Rajasthan and Uttar Pradesh.

The scheme features a total financial outlay of INR 95.85 billion, which includes an INR 50.41 billion capital commitment from the Central Government and an estimated INR 16.01 billion allocated via tax concessions from the participating states.

The program targets the replacement of heavy commercial vehicles currently complying with BS-IV or earlier emission standards with newer BS-VI (or stricter) compliance models and electric vehicles (EVs). According to data cited from an August 2018 source apportionment study by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI):

• Sector Emissions: The transport sector drives 14 percent of PM2.5, 40 percent of Carbon Monoxide (CO), and 63 percent of Nitrogen Oxide (NOx) emissions in Delhi-NCR.
• High-Impact Fleet: Within this sector, trucks and buses account for 36 percent of total PM2.5 emissions while making up just 3 percent of the active vehicle fleet.
• Technology Gap: A single Pre-BS heavy-duty vehicle emits as much particulate matter as 14 BS-VI vehicles, while an older BS-IV truck emits 2.7 times more than its BS-VI counterpart.

The fleet modernisation drive is expected to benefit approximately 207,000 vehicle owners across the NCR, encompassing 191,000 trucks and 16,329 buses. Government-owned fleets are explicitly excluded from the scheme.

The operational guidelines differ by vehicle generation and state jurisdictions:

• BS-III or Older Vehicles: Owners must format and scrap old assets at a Registered Vehicle Scrapping Facility (RVSF).
• BS-IV Vehicles: May either be scrapped or sold outside the NCR boundary into non-NCAP (National Clean Air Programme) cities and towns.
• Replacement Registration: New replacement vehicles must be registered inside the NCR.
• Delhi-Specific Mandates: Within the National Capital Territory of Delhi, all Light Goods Vehicles (LGVs) purchased under this framework must be purely electric, while new buses are restricted to either BS-VI CNG or electric drivetrains.

To offset transition costs for operators, the program bundles financial support from the central government, state bodies, and original equipment manufacturers (OEMs):

The rollout will operate entirely via an integrated digital portal designed to handle real-time eligibility screening, automated processing for interest subventions, monthly credit distribution for fuel vouchers, and structural tracking of net pollution reduction metrics. While the enrollment window spans two years, the central government's financial benefits will remain active for 5 years from a vehicle's individual registration date to provide sustained operational relief.

Administrative monitoring will be directed by a high-level Empowered Committee chaired by the Cabinet Secretary. The body will include the CEO of NITI Aayog, Secretaries from MoHUA, MoRTH, MoPNG, and the Department of Financial Services (DFS), alongside the Chief Secretaries of the participating NCR states, with the Member Secretary of the NCRPB serving as the member convenor. Local execution and district-level compliance will be managed by respective District Magistrates and District Collectors.

Shailesh Chandra, President, SIAM, said, “This is a positive step towards accelerating the adoption of cleaner vehicles in Delhi NCR. A combination of 5 percent interest subvention by the Centre, road tax concessions by States, monthly fuel vouchers of up to INR 4,800 by OMCs, and discounts by OEMs allows participation from all stakeholders to provide an opportunity to owners of old Commercial Vehicles to leverage the programme, thereby contributing to reducing pollution load in NCR.”

Girish Wagh, MD & CEO, Tata Motors, said, “The approval of this scheme is a positive step towards accelerating fleet modernisation and cleaner mobility in the Delhi-NCR region. Aligned with our commitment to make cargo and passenger transportation greener and more efficient, we are well positioned to support this transition through our expansive portfolio of BS-VI and zero-emission commercial vehicles, and our nationwide network of Re.Wi.Re registered vehicle scrapping facilities. We look forward to studying the finer details of the notification to further align our efforts towards building a more sustainable and modern commercial vehicle ecosystem.”

B. Srinivas, MD & CEO, VECV, said, “We applaud the Government for approving the vehicle replacement scheme for Delhi-NCR. This is a significant step towards accelerating fleet modernisation while addressing one of the region’s most pressing environmental challenges. As India progresses towards its Net Zero 2070 ambitions, such initiatives demonstrate how policy, industry and technology can come together to drive sustainable mobility. At VECV we believe this will not only support cleaner transportation in Delhi-NCR but also serve as a model for fleet renewal and modernisation across the country during its Amrit Kaal. We are committed to supporting our customers through this transition with a wide range of Eicher and Volvo trucks and buses offering fuel options covering electrics, CNG, LNG and clean BSVI diesel.”

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Vijaybhoomi University and the Nettur Technical Training Foundation (NTTF) have introduced a training programme that allows employees at Tata Motors to earn university-recognised diplomas while working.

The initiative, marked by a convocation at Tata Motors’ Pimpri-Chinchwad plant, aligns with the National Education Policy 2020 by integrating vocational skills with higher education frameworks.

Under this partnership, NTTF Mechatronics programme graduates receive a Technical Diploma aligned with the National Higher Education Qualification Framework. Learners may subsequently progress to an Advanced Technical Diploma and a B.Tech in Mechatronics without leaving their jobs.

Sanjay Padode, President, Vijaybhoomi University, said, "A university should recognise learning wherever it genuinely happens. Many of these learners have developed advanced technical capability on the shopfloor through structured training and disciplined practice. Our role is to connect that learning with nationally recognised higher education so that they can continue to grow academically without stepping away from their careers."

Ravi Tennety, Managing Director, NTTF, said, "For more than 60-years, NTTF has prepared young people for careers in manufacturing and technology. This partnership gives our learners an opportunity to build on that foundation through formal higher education while continuing to contribute to industry. It creates new possibilities for lifelong learning."

Prof Ravikesh Srivastava, Vice Chancellor, Vijaybhoomi University, said, "India has spoken for many years about integrating skills, industry and higher education. What we are seeing today is one working model of how that integration can happen in practice. It is built on academic quality, industry relevance and learner mobility."

Sitaram Kandi, Chief Human Resources Officer, Tata Motors, said, "Manufacturing is changing rapidly, and so must the way we develop our people. Technical skills acquired on the shopfloor deserve opportunities for continuous academic progression, without requiring employees to step away from work. This collaboration between Tata Motors, NTTF and Vijaybhoomi University creates a pathway where learning, work and career advancement reinforce one another. It recognises that capability is built not only in classrooms but also through disciplined practice, problem-solving and real production environments. By enabling our employees and apprentices to earn nationally recognised university qualifications while continuing to contribute on the shopfloor, we are investing not only in individual growth but also in building a future-ready manufacturing workforce for India."

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The Federation of Automobile Dealers Associations (FADA), the apex body representing automotive dealers in India, held its 5th Finance and Insurance (F&I) Summit in Mumbai. The event brought together representatives from the banking, finance, insurance and auto retail sectors to discuss vehicle ownership and dealership viability.

The summit focused on wholesale finance, retail finance and insurance. Guest of Honour Dr. Pankaj Kanchan Rajesh Bhoyar attended the event, which featured participation from leaders including Dr. Rajan Pental of Yes Bank, Raul Rebello of Mahindra Finance and Abhinav Garg of AU Small Finance Bank.

During the event, FADA released the 3rd edition of its Dealer Satisfaction Study for Finance and Insurance, which surveyed over 700 dealerships. The report indicated an increase in satisfaction regarding wholesale finance, retail finance and insurance disbursements. It also identified a requirement for training in the commercial vehicle segment and increased funding for the used-vehicle market.

C S Vigneshwar, President, FADA, said, "If an automobile dealership were a human body, the OEM is our heart, pumping the product lifeblood. Wholesale finance is the bloodstream - the working capital that must flow freely to keep the body energetic. Retail finance is our legs, allowing the customer to walk out with a vehicle, while insurance is our immune system, protecting us when the unexpected occurs. The dealer is the face the customer trusts, but you cannot have a healthy face on an unhealthy body. It takes all four of us - the OEM, the financier, the insurer and the dealer, working in a perfect relay to keep the customer."

Vigneshwar advised dealers to conduct monthly reconciliation of payouts and commissions and to invest in the training of F&I desks, stating, "F&I income is no longer just 'the icing' but a 'loadbearing wall of dealership viability. Our dealer partners have highlighted a few key areas for improvement across finance and insurance. In wholesale finance, they expect more transparent, demand-led funding and quicker transmission of interest rate reductions. In retail finance, there is a strong need for more robust used-vehicle funding solutions and smoother reconciliation processes. In insurance, faster claims settlement and stronger protection of dealer-led customer relationships remain critical priorities.”

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ZF Group has taken a prominent position at Prawaas 5.0, India’s premier multimodal transport exhibition, currently underway in Gandhinagar, Gujarat. The event, hosted by the Bus and Car Operators Confederation of India (BOCI), runs from 9 to 11 July 2026 at the Helipad Exhibition Centre, gathering industry leaders, government officials and technology providers to deliberate on the future of mobility.

ZF Group is presenting an extensive array of Original Equipment and Aftermarket solutions aimed at accelerating India's shift towards safer roads and cleaner commercial transportation. The company's exhibit spans electrification, braking systems, chassis engineering, advanced safety features and digital connectivity, underscoring its strategic intent to equip the Indian market with innovations that enhance performance and environmental sustainability.

A standout feature is the AxTrax 2, an integrated electric axle for light and medium-duty buses that consolidates the electric motor, inverter, electronic control unit and transmission into a compact housing. This system delivers high efficiency and power output, making it suitable for battery-electric, fuel-cell and trolley bus applications, thereby facilitating local zero-emission public transport.

Complementing this is the RL82A front axle system for city buses, featuring a low-floor design with a wide centre aisle and steering angles up to 55 degrees for improved manoeuvrability in congested settings. The system also incorporates low-maintenance construction and internally ventilated disc brakes, enhancing passenger comfort and active safety in demanding urban environments.

Additional offerings include Door Control Solutions with clamping protection and emergency functions, along with advanced driver assistance systems, electronic braking and stability controls, tyre pressure monitoring and connected technologies like Bus Connect. The Aftermarket division presents fleet-oriented products including 360-degree camera systems, brake components and maintenance essentials to ensure vehicle uptime and lifecycle reliability.

ZF Group India’s leadership is also contributing to industry conversations – Paramjit Singh Chadha, Senior Vice President, ZF Group, will be a lead panellist at the session ‘Electrifying School Bus Transport for a Cleaner Future’, held on 10 July. Through its comprehensive presence at Prawaas 5.0, ZF is reinforcing its dedication to India’s public transport evolution, showcasing safer, cleaner and more connected mobility solutions at Booth 12 A6C.

Akash Passey, President, ZF Group India, said, "India's public transport ecosystem is undergoing a fundamental transformation, driven by rapid urbanisation, sustainability goals and an increasing focus on road safety and operational efficiency. At ZF, we are enabling this transition by bringing together globally proven technologies and local engineering expertise to support our customers across every stage of their mobility journey. Our participation at Prawaas 5.0 reflects our commitment to delivering integrated solutions that not only address today's transportation challenges but also lay the foundation for a connected, electrified and software-driven future for commercial vehicles in India."

Paramjit Singh Chadha, Senior Vice President, ZF CVS India,  said, "The future of bus mobility will be defined by intelligent systems that seamlessly integrate safety, electrification, connectivity and vehicle control. At ZF, we are developing scalable technologies that help OEMs and fleet operators improve vehicle performance, passenger safety, operational uptime and total cost of ownership while preparing for the next generation of commercial vehicles. Through our comprehensive portfolio showcased at Prawaas 5.0, we continue to support India's transition towards smarter and more sustainable public transportation."

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The Honda India Foundation (HIF) has held a ground-breaking ceremony for a Road Safety Centre of Excellence (CoE) in Viramgam, Gujarat.

The centre is designed to provide road safety education through training and simulation-based learning. It is scheduled to open in 2027 and is expected to provide safety programmes for 5,000 people each year.

The CoE will feature a Road Safety Education & Awareness Wing equipped with training tools for students, youth groups and local communities. Additionally, it will include an Accident Research & Data Analytics Unit to examine traffic patterns, identify risk locations and assist with safety audits.

Vinay Dhingra, Trustee, Honda India Foundation, said, “Road safety requires a combination of awareness, training and data-driven insights. Through this Centre of Excellence, we aim to create a practical platform that supports safer road behaviour, promotes road safety education and contributes to more informed safety interventions. This initiative reflects Honda India Foundation's continued commitment to strengthening road safety awareness and fostering safer road-use practices at the community level.”

Gyanender Singh Malik, Director General of Police, Gujarat State, said, “We appreciate Honda India Foundation’s support in setting up this Road Safety Centre of Excellence in Gujarat. The Centre will help strengthen structured road safety education and support data-led interventions for safer roads. Such collaborations add value to the state’s efforts towards improving road safety awareness and reducing road accident risks.”

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