LUCKNOW, July 6 -- Uttar Pradesh has identified nearly 70,000 old buses and trucks in its eight National Capital Region (NCR) districts for deregistration and replacement with new BS-VI-compliant or electric vehicles under the Centre's Rs.9,585-crore vehicle transition scheme aimed at reducing air pollution in Delhi-NCR. The transport department has estimated that tax concessions under the programme could reduce the state's revenue by around Rs.128 crore annually and has submitted a proposal to the state government recommending that reimbursement for the revenue foregone be sought under the Central scheme. The cumulative revenue loss is projected to exceed Rs.1,200 crore over the next decade if the tax concessions remain in force throughout the incentive period, people familiar with the matter told HT. "The proposal sent to the state government recommends seeking reimbursement of the revenue foregone due to tax exemptions that participating states will have to extend under the programme," a senior transport department official said. The move follows the Union cabinet's approval of the two-year scheme, with an outlay of Rs.9,585 crore, to accelerate the replacement of polluting buses and trucks across Delhi-NCR. Announced on June 3, the programme will be implemented through the National Capital Region Planning Board (NCRPB) in coordination with the ministry of road transport and highways, the ministry of petroleum and natural gas and participating states, including Uttar Pradesh. According to state estimates, around 60,000 trucks and 10,000 buses registered and operating in Uttar Pradesh's eight NCR districts, Ghaziabad, Gautam Buddha Nagar, Meerut, Baghpat, Muzaffarnagar, Shamli, Bulandshahr and Hapur, have been identified for deregistration and replacement. Under the scheme, owners of old buses and trucks who surrender and scrap their existing vehicles and purchase new BS-VI-compliant or cleaner vehicles, including electric vehicles, will be eligible for a range of incentives. Participating states are required to waive registration fees and provide motor vehicle tax concessions of up to 100% on new vehicles and 50% on used vehicles for a period of 10 years. Officials said these exemptions would directly affect the state's transport tax collections. At present, buses pay road tax at the rate of Rs.127 per seat while trucks pay Rs.247 per tonne, collected on a monthly, quarterly or annual basis. The Centre's scheme has been designed to ensure that polluting commercial vehicles are permanently phased out rather than shifted to neighbouring non-NCR areas. Officials said vehicles identified under the programme would either be scrapped or regulated in accordance with emission norms to prevent their relocation outside the NCR belt within UP. Last week, Prime Minister's Advisor Tarun Kapoor held a virtual meeting with chief secretary SP Goyal to review implementation of the scheme through the NCRPB. The Centre estimates that around 2.07 lakh vehicle owners across Delhi-NCR, including 1.91 lakh truck owners and 16,329 bus owners, will benefit under the scheme. The policy has been framed to address severe air pollution in Delhi-NCR. "A source-apportioned study conducted by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI) found that the transport sector contributes 14% of PM2.5 emissions, 40% of carbon monoxide emissions and 63% of nitrogen oxides emissions in the region. Heavy commercial vehicles, despite forming a small share of the fleet, account for a disproportionately high share of pollution," the official said. To encourage participation, the Centre will provide a 5% interest subvention on loans for five years, monthly fuel vouchers of up to Rs.4,800 depending on the vehicle category and additional incentives for electric vehicle purchases. Participating automobile manufacturers have also committed discounts of up to 8% on ex-showroom prices. Implementation will be through a digital platform, with district magistrates overseeing execution....