Delhi's Bold Electric Vehicle Policy: A Game Changer for Clean Air and Sustainable Transport

Delhi Government Unveils Ambitious EV Policy

New Delhi: On Saturday, the Delhi government introduced a transformative electric vehicle (EV) policy aimed at promoting sustainable transport. This initiative includes waiving registration fees and road taxes for EVs priced up to ₹30 lakh, expanding the network of charging stations, and offering a ₹1 lakh incentive for purchasing new EVs when old vehicles are scrapped.

The draft policy mandates that within two years, at least 10% of school buses must be electric, targeting a significant reduction in vehicular emissions that have contributed to Delhi's status as one of the world's most polluted cities.

For electric cars with an ex-showroom price of up to ₹30 lakh, the government proposes a complete exemption from road tax and registration fees, effective until March 31, 2030.

Vehicles in this price range are recognized as major contributors to pollution due to their frequent use.

Cars exceeding ₹30 lakh will not qualify for these benefits, while strong hybrid vehicles will receive a 50% tax exemption, indicating a transitional strategy.

Acknowledging that two-wheelers make up a large portion of Delhi's vehicle count, the policy introduces decreasing incentives to promote early adoption.

Residents purchasing electric two-wheelers priced up to ₹2.25 lakh will receive ₹10,000 per kilowatt-hour (kWh) as an incentive, capped at ₹30,000 during the first year after the policy's announcement.

In the second year, the incentive will decrease to ₹6,600 per kWh, with a maximum of ₹20,000, and in the third year, it will further drop to ₹3,300 per kWh, capped at ₹10,000.

From April 1, 2028, only electric two-wheelers will be registered in Delhi.

Additionally, residents can receive up to ₹1 lakh as a scrapping incentive when they buy a new electric car in exchange for scrapping their old BS-IV or older vehicles, limited to the first 100,000 eligible applicants.

Starting this year, petrol and diesel vehicles will not be added to delivery and ride-sharing fleets in Delhi, and only electric auto-rickshaws will be registered from next year.

Chief Minister Rekha Gupta emphasized that this draft policy, intended to remain in effect until March 31, 2030, provides a comprehensive framework for promoting clean and sustainable transportation in the capital.

She stated, "The proposed Delhi EV Draft Policy 2026 is a significant step towards establishing a clean, accessible, and sustainable transport system in the capital."

The chief minister highlighted that the policy includes extensive financial incentives, tax exemptions, mandatory provisions, and infrastructure development to encourage electric vehicle adoption.

The Delhi government has allocated ₹3,954.25 crore for this initiative, which encompasses ₹1,236.25 crore for purchase incentives, ₹1,718 crore for scrapping incentives, and ₹1,000 crore for developing charging infrastructure.

Transport and vehicular emissions are the largest contributors to Delhi's PM2.5 pollution levels, accounting for nearly half of the city's pollution burden.

During last winter's peak pollution period, vehicles contributed approximately 46% to 53% of local PM2.5 levels, according to a report from the Centre for Science and Environment released on December 31 last year.

Sunil Dahiya, founder and lead analyst at Envirocatalyst, remarked that the Delhi EV Policy 2026-2030 links the right to clean air with the constitutional right to life.

He stated, "By tackling vehicular emissions, a primary source of pollution, the government is ensuring that the transport sector takes responsibility for providing a livable environment."

An apex committee led by the transport minister will oversee the implementation and management of the EV fund, while a high-level committee chaired by the chief secretary will coordinate efforts among various departments.

The Delhi government has rolled out its draft Electric Vehicle (EV) Policy 2026-2030, focusing on financial incentives to accelerate electric mobility and address the escalating air pollution crisis in the capital.

The policy proposes a combination of subsidies, tax exemptions, and scrappage incentives to make electric vehicles more affordable.

Incentives also extend to electric three-wheelers and goods carriers, including an e-auto subsidy of ₹50,000 in the first year, ₹40,000 in the second year, and ₹30,000 in the third year. For e-goods vehicles (N1 category), incentives of up to ₹1 lakh will be available in the first year following the policy's notification.

The new EV policy may also require that 30% of all school buses transition to electric by the end of March 2030.

According to the draft policy, various departments, autonomous bodies, and civic agencies, including the Municipal Corporation of Delhi, the New Delhi Municipal Council, and the Delhi Cantonment Board, must ensure that new civil projects are equipped for EV charging, with sufficient electrical capacity for installing charging infrastructure.

The policy suggests a "gradual decline in subsidies" to encourage early adoption while minimizing long-term fiscal impacts.

While financial incentives are a key aspect of the policy, it also emphasizes the need for infrastructure development, including expanding the charging network across Delhi, promoting battery swapping, establishing a dedicated EV fund for financing, and implementing battery recycling and traceability systems.

The government aims to create a "comprehensive EV ecosystem" alongside consumer incentives.

To support this infrastructure, Delhi Transco Limited has been designated as the nodal agency responsible for planning and implementing charging and battery swapping networks.

A dedicated digital portal will be created to facilitate approvals, monitoring, and operations.