In the Delhi Budget 2026–27, presented in March 2026, the government outlined steps to manage vehicular emissions through scrapping older vehicles. The approach focuses on reducing the number of unfit and high-emission vehicles on roads. Vehicle scrapping is positioned as part of a broader transport plan that includes emission reduction and fleet transition.
Incentives for Scrapping Old Vehicles
The budget refers to purchase and scrapping incentives under the electric vehicle policy framework. These incentives are intended to encourage owners to replace older vehicles with newer alternatives, including electric vehicles.The policy aims to create a link between scrapping and new vehicle adoption, particularly in segments with high usage.
Expansion of Vehicle Testing Infrastructure
To support scrapping decisions, the government plans to expand vehicle fitness testing capacity. New Automatic Testing Stations (ATS) are being set up in areas such as Nand Nagri, Burari, and Tehkhand.
Additional ATS facilities are also proposed in locations including Bawana, Ghazipur, and Dwarka-linked depots. These centres are expected to handle fitness checks for commercial vehicles and identify those that may need to be scrapped.
Integration with Transport Policy
Vehicle scrapping is part of a wider transport allocation of ₹8,374 crore. The policy framework connects scrapping with emission standards, electrification of public transport, and infrastructure development. The plan also includes the addition of electric buses and support for charging infrastructure, which may influence replacement choices after scrapping.
Focus on Commercial Vehicle Segment
The budget highlights that a large number of commercial vehicles undergo annual fitness checks. Strengthening testing systems is expected to improve compliance and identify ageing vehicles. This is expected to affect fleet operators, particularly in logistics and public transport, where vehicle usage is higher.
Policy Direction
The vehicle scrapping approach combines regulatory checks, incentives, and infrastructure. It is aligned with broader goals of managing emissions and updating the vehicle base in the city.
