Mumbai, June 4 -- The move is expected to boost vehicle scrappage and increase demand for organised recycling services.

MSTC jumped 14.06% while MMTC rose 8.09%.

The two-year scheme, approved by the Cabinet chaired by Prime Minister Narendra Modi, aims to reduce vehicular pollution by encouraging owners of BS-IV and older trucks and buses to switch to BS-VI-compliant or electric vehicles.

The programme is expected to benefit around 2.07 lakh vehicle owners across Delhi, Haryana, Rajasthan and Uttar Pradesh. This includes about 1.91 lakh trucks and 16,329 buses.

Under the scheme, owners of BS-III and older vehicles will be required to scrap their vehicles at registered scrapping facilities. BS-IV vehicles can either be scrapped or sold...