India, June 3 -- The Union cabinet on Wednesday approved replacing old trucks and buses with Bharat Stage-VI (BS-VI) or electric vehicles in the Delhi-National Capital Region (NCR) region through a Rs.9,585-crore scheme as part of efforts to curb air pollution.

BS-VI, the most stringent government-mandated vehicular emission standard equivalent to Euro 6 norms, seeks to reduce air pollutants.

The scheme approved on Wednesday offers a 5% interest subvention on loans for five years and monthly fuel vouchers of up to Rs.4,800 for vehicle owners. Automobile manufacturers will provide an 8% discount on the ex-showroom price of new vehicles purchased under the scheme. To avail of the benefits, owners will have to scrap BS-III and older vehicl...