MSTC shares rally as Cabinet clears ₹5,041-crore vehicle replacement scheme for Delhi-NCR

MSTC emerged as one of the top gainers on the NSE, with its stock soaring 17.31 percent during intraday trade before paring some gains.

The shares were still trading firmly in the green, up nearly 13 percent at over ₹500 apiece.

MMTC Also Rallies

Another state-run company, MMTC Ltd., also witnessed strong buying momentum following the Cabinet decision.

MMTC shares climbed around 7 percent, benefiting from the positive sentiment generated by the government's clean mobility push.

Cabinet Clears Major Clean Mobility Initiative

On June 3, the Union Cabinet chaired by Prime Minister Narendra Modi approved a landmark two-year scheme aimed at reducing air pollution in the Delhi–NCR region and promoting cleaner mobility.

The scheme will be funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs (MoHUA) and implemented by the Ministry of Road Transport and Highways (MoRTH) and Ministry of Petroleum and Natural Gas (MoPNG).

It will be implemented in collaboration with the participating States and Union Territories of Delhi, Haryana, Rajasthan, and Uttar Pradesh.

For BS‑III or older vehicles, scrapping at Registered Vehicle Scrapping Facilities is mandatory, while BS‑IV vehicles may either be scrapped or sold outside NCR in non‑NCAP cities / towns.

Owners must then purchase and register a BS‑VI or stricter norms compliant or electric vehicle within NCR. However, In Delhi, Light Goods Vehicles purchased under the scheme must be electric, while buses must be BS‑VI CNG or electric only.

Government vehicles are excluded from the scheme.