J&K Transport Subsidy Scheme for Replacing Old Buses/Matadors, How To Apply And Eligibility Criteria

Applications are invited from eligible vehicle owners to benefit under the Jammu & Kashmir Transport Subsidy Scheme. This scheme facilitates the replacement of old buses, minibuses, and matadors with new eco-friendly and fuel-efficient buses. The initiative is implemented under Government Order No. 65-JK(TR) of 2022, dated 05-12-2022, issued under endorsement No. TRPT-MVDON/33/2021-02-TPT, dated 05-12-2022.

Benefits Accruing From J&K Subsidy Scheme 2025

• Subsidy for Replacement of Old Buses: The government will provide a subsidy of ₹5.00 lakh for replacing old buses aged 15 years or more. For other classes of public transport vehicles aged 15 years and above, the subsidy will be 16% of the vehicle's cost or ₹5.00 lakh, whichever is lower.
• Promotion of Eco-Friendly Transport: The scheme encourages the adoption of eco-friendly, fuel-efficient buses that comply with the latest emission standards, contributing to a greener transportation system.
• Improved Public Transport Efficiency: By optimizing road space usage, the scheme aims to transport the maximum number of passengers per unit of road area, thereby reducing congestion, traffic jams, and air pollution.
• Reduction in Private Vehicle Dependency: The initiative will help curb the rising ownership of private cars, address parking challenges, and improve road availability for public transport.

iGOT Karmayogi Portal Registration 2025

Eligibility

Old buses/mini buses/matadors of 15 years and above age.

Criteria

• Selection of operators with buses over 15 years of age by way of open advertisement.
• Subsidy to be provided to those who are in need of loan to raise capital.
• Subsidized vehicle shall not be transferred for a period of 5 years.
• Bank shall make the payment to OEM along with subsidy.
• Vehicle operator availing the benefit of scheme must ply these vehicles on identified routes for 5 years for which concerned RTOS shall file 6 monthly compliance report in this regard.
• Applicants after approval shall be allowed to 3 months' time to purchase the vehicle after entry into loan agreement with the concerned bank and the subsidy component shall be transferred to the Bank on capital investment.
• The said vehicle should have cleared all Govt. dues including Token Tax, Passenger Tax, Fitness Fee, Permit Fee, Bank liability etc.
• The vehicles should have a valid Permit renewed upto date along with valid insurance certificate.
• The concerned owner would be required to condemn the vehicle/s and get it scrapped and only after deregistration of vehicle/s they shall be allowed to avail the subsidy.

Formalities/ Papers to be submitted

• Application on plain paper shall be submitted to the RTO Jammu/ Kashmir.
• Certificate from the registered scrap dealer.
• All documents of concerned vehicle should be updated at the time of scrapping of the vehicle.
• Chassis cut piece of the old vehicle.

How to Apply for the J&K Transport Subsidy Scheme 2025

Step 1: Eligibility Verification

• Ensure your vehicle meets the eligibility criteria:

1. Must be a bus, minibus, or matador aged 15 years or more.
2. All government dues (Token Tax, Passenger Tax, Fitness Fee, Permit Fee, etc.) must be cleared.
3. The vehicle should have a valid permit and insurance.

• Prepare the necessary documents:

1. Application on plain paper.
2. Certificate from a registered scrap dealer.
3. Updated documents of the concerned vehicle.
4. Chassis cut piece of the old vehicle.

Step 2: Vehicle Deregistration

• Condemn and scrap your vehicle with a registered scrap dealer.
• Obtain a deregistration certificate from the transport authorities.

Step 3: Submit Application

• Submit your application along with required documents to the RTO office (Jammu/Kashmir).

Step 4: Approval and Loan Agreement

• Once approved, enter into a loan agreement with a designated bank if required.
• The subsidy component will be transferred to the bank as part of the capital investment.

Step 5: Vehicle Purchase

• Purchase the new eco-friendly vehicle within 3 months of approval.
• Ensure the vehicle complies with the latest emission standards.

Step 6: Route Compliance

• Operate the subsidized vehicle on identified routes for 5 years.
• RTOS will monitor compliance with six-monthly reports.

For more information, visit the RTO office or consult the official notification under Government Order No. 65-JK(TR) of 2022.

J&K Ladli Beti Scheme 2025

Summary of J&K Transport Subsidy Scheme 2025 PDF 

The J&K Transport Subsidy Scheme 2025 offers a ₹5.00 lakh subsidy or 16% of vehicle cost for replacing buses aged 15+ years with eco-friendly, fuel-efficient models. Eligible owners must deregister old vehicles, comply with route conditions, and meet government dues. The scheme reduces congestion, promotes green transport, and enhances public transport efficiency across Jammu & Kashmir.