The Ministry of Road Transport and Highways signed memoranda of understanding with the companies on 7 July, alongside IPLTECH Electric Private Limited and TIVOLT Electric Vehicles Private Limited.

Under the agreements, participating original equipment manufacturers will extend an 8 per cent discount on the ex-showroom price of eligible trucks and buses purchased through the scheme.

For electric vehicles, the discount is capped at the amount applicable to an equivalent internal combustion engine vehicle based on gross vehicle weight. Montra Electric, which operates under TI Clean Mobility Private Limited, signed two separate MoUs with the transport ministry to participate in the structured fleet modernisation programme.

The scheme carries a total financial outlay of Rs 9,585 crore, including Rs 5,041 crore from the central government and an estimated Rs 1,601 crore in tax concessions from participating states.

It targets approximately 2.07 lakh vehicle owners across Delhi-NCR, comprising 1.91 lakh trucks and 16,329 buses registered in Delhi, Haryana, Rajasthan and Uttar Pradesh.

Vehicle owners with BS-IV or older emission-compliant commercial vehicles can replace them with BS-VI or electric alternatives.

The central government will provide 5 per cent interest subvention on vehicle loans for five years, along with monthly fuel vouchers worth up to Rs 4,800 depending on vehicle category.

State governments will waive registration fees and grant up to 100% motor vehicle tax concessions for new vehicles for 10 years.

Olectra Greentech, India's leading electric bus manufacturer, is based in Hyderabad and produces electric buses, trucks and composite polymer insulators.

TI Clean Mobility Private Limited, which markets vehicles under the Montra Electric brand, is a wholly owned subsidiary of Tube Investments of India, part of the Murugappa Group. The company manufactures electric three-wheelers, trucks, tractors and commercial vehicles.