The Haryana government has unveiled a comprehensive tax incentive scheme aimed at accelerating the replacement of ageing commercial vehicles with cleaner, greener alternatives. According to a notification issued by the Haryana Transport Department on June 24, the government has approved 100% exemption on Motor Vehicle (MV) tax for the purchase of new trucks and buses meeting BS-VI or stricter emission norms, as well as electric vehicles (EVs) and CNG-powered vehicles. A 50% MV tax exemption will be provided on the purchase of eligible used trucks and buses, with the tax benefit remaining applicable for 10 years from the date of first registration of the replacement vehicle. The long-term incentive is expected to reduce operating costs for fleet operators and encourage investments in cleaner commercial transport solutions. As per recent reports, the state has also waived registration fees and certain pending liabilities associated with old vehicles, making the transition to cleaner vehicles more affordable and attractive for transport operators.
To qualify for the scheme, transport operators must own trucks or buses registered in Haryana's NCR districts that comply with BS-IV or older emission standards. The old vehicles must be replaced through a mandatory scrapping or sale process, with BS-III or older trucks and buses requiring scrapping only at a Registered Vehicle Scrapping Facility (RVSF) operating in Haryana. BS-IV vehicles can either be scrapped at an RVSF or sold outside NCR areas in cities or regions not covered under the National Clean Air Programme (NCAP). The replacement vehicles must be purchased and registered within Haryana's NCR districts and should meet BS-VI or stricter standards, or run on EV/CNG technology. The policy includes provisions for the disposal of older vehicles to ensure that polluting vehicles are permanently removed from service.
The state government has also waived outstanding liabilities pending for more than one year on old BS-IV and earlier emission-standard trucks and buses registered in NCR districts of Haryana. As reported by the Haryana Transport Department, this move is aimed at reducing vehicular pollution and promoting cleaner transport solutions across the National Capital Region. The initiative is expected to speed up the phase-out of ageing commercial vehicles that contribute significantly to air pollution while facilitating the adoption of cleaner technologies. The latest incentive package includes registration fee waivers and comprehensive relief from pending liabilities, making the transition to cleaner vehicles more financially viable for transport operators.
Unlike many policies that focus exclusively on electric vehicles, Haryana's new replacement scheme adopts a technology-neutral approach that allows fleet operators to choose the most suitable low-emission technology. This flexibility is particularly important for transport businesses that may not yet be ready for a complete transition to battery-electric vehicles due to factors such as higher upfront costs, charging infrastructure limitations, or specific operational requirements. The policy allows businesses to choose between BS-VI-compliant vehicles, CNG-powered models, or electric vehicles while still benefiting from government incentives. The new incentive package is expected to generate replacement demand in one of India's busiest freight and logistics corridors, with commercial vehicle manufacturers likely to benefit from increased demand for new trucks and buses as fleet owners look to upgrade their vehicles. The policy is also likely to strengthen the vehicle scrappage ecosystem and encourage wider adoption of CNG-powered commercial vehicles across the NCR region.
