Delhi used only 14% of NCAP funds to fight air pollution since 2019, lags far behind NCR cities

Notably, the budget allocation under one scheme does not represent the entirety of pollution-related funding in Delhi-NCR, which is spread across multiple programmes and institutions.

What is NCAP?
Launched in January 2019, the NCAP is the Centre’s framework for improving air quality in 130 cities. It sets city-specific targets for reducing particulate matter pollution, with an overall goal of achieving up to a 40% reduction in PM10 levels, or meeting national standards, by 2025-26.

The programme is not implemented through a single funding source. Funds have been released based on performance, with large cities or the million-plus cities such as Delhi receiving grants through the Finance Commission, and smaller cities funded directly by the Environment Ministry.

The programme also relies on coordination across multiple ministries, with a nationwide action plan linked to schemes run by departments handling transport, energy, urban development, industry and agriculture.

According to Anumita Roychowdhury, Executive Director, Centre for Science and Environment, “A convergence approach is needed… This means clearly identifying and augmenting financial allocations across multiple ministries.”

Meanwhile, the “Control of Pollution” scheme, administered by the Environment Ministry since 2018-19, is intended to support pollution control across air, water and noise. A Parliamentary Standing Committee report published last March shows that the Budget Estimate for the 2025-26 financial year for the scheme was Rs 853.9 crore. NCAP is one of the sub-components under this scheme.

The Parliamentary Committee previously flagged serious concerns over the overall utilisation of funds under the “Control of Pollution” scheme. In its report on the Environment Ministry’s demands for grants, the panel noted that against a Revised Estimate of Rs 858 crore for 2024-25, actual expenditure up to January 31, 2025, was only Rs 7.22 crore.

The Ministry said spending was held up because formal approval to extend the scheme had not been granted.

Other channels
Pollution-related funding in Delhi-NCR also flows through other channels, such as the Commission for Air Quality Management, which has been allocated under the Union Budget, Rs 35.26 crore for the year 2026-27, largely for administrative and coordination functions, and funds generated through court and tribunal orders under the polluter pays principle, such as environmental compensation imposed by the National Green Tribunal. Another distinct funding stream for air pollution control in Delhi-NCR is the Environment Protection Charge (EPC), which operates separately from Union Budget allocations and NCAP funding, and applies to diesel cars and SUVs with engine capacity of 2,000 cc and above sold or registered in Delhi and the NCR.

The Central Pollution Control Board maintains the EPC fund and also utilises it for air quality management in the region.
Roychowdhury underlined the need for clearer frameworks to ensure that revenues collected through environmental charges and compensation are channelled into dedicated air pollution control strategies and do not remain underutilised. She said,

“Funding under the NCAP has so far relied heavily on 15th Finance Commission grants, and since this window is nearing its end, it’s important to evaluate future clean air financing. This would require a more deliberate strategy that aligns sectoral spending on transport, energy transition, waste management and industry with air quality goals.”