Delhi Unveils Draft Electric Vehicle Policy for 2026-2030 to Combat Air Pollution

Overview of the New Electric Vehicle Policy

The government of Delhi has introduced a draft policy for Electric Vehicles (EVs) covering the period from 2026 to 2030, with the goal of addressing the city's critical air pollution issues and facilitating a transition to cleaner transportation options. Transportation is responsible for around 23% of the pollution in the region, prompting the need for a robust policy to encourage the adoption of electric vehicles, which was initially proposed in August 2020. The draft includes various incentives aimed at fostering the growth of the EV sector, along with specific timelines for different vehicle categories.

Key Features of the Draft Policy

Incentives for Electric Cars

Electric cars priced at or below Rs 30 lakh will benefit from a complete exemption on road tax and registration fees until March 31, 2030. However, vehicles exceeding this price will not qualify for any exemptions. Additionally, strong hybrid vehicles will receive a 50% reduction in these fees.

Incentives for Electric Two-Wheelers

For electric two-wheelers with an ex-factory price of up to Rs 2.25 lakh, the following incentives will be available:

• Year 1: Rs 10,000 per kWh (maximum Rs 30,000)
• Year 2: Rs 6,600 per kWh (maximum Rs 20,000)
• Year 3: Rs 3,300 per kWh (maximum Rs 10,000)

Incentives for Electric Three-Wheelers

Starting January 1, 2027, only electric three-wheelers will be permitted for new registrations in Delhi. The government will provide the following incentives for electric rickshaws:

• Year 1: Rs 50,000
• Year 2: Rs 40,000
• Year 3: Rs 30,000

Transition for School Buses and Government Fleets

All school buses, whether owned, leased, or hired, will be required to transition to electric vehicles gradually:

• 10% electric within 2 years
• 20% within 3 years
• 30% by March 31, 2030

Furthermore, all new vehicles acquired or leased by the Delhi government must be electric from the date of notification, with some exceptions. New buses introduced by the Delhi Transport Corporation (DTC) and the Transport Department will also be electric, as will all new N1 category trucks purchased by government entities.

Regulations for Fleet Operators and Delivery Services

Fleet operators and delivery services will be prohibited from adding new petrol or diesel vehicles after certain deadlines, with limited exceptions until December 2026.

Infrastructure Development for EVs

All new constructions and major infrastructure projects must be equipped with EV charging facilities. Agencies that own land will be tasked with identifying locations for public charging and battery swapping stations. Delhi Transco Limited will oversee the planning and expansion of the charging network.

Battery Waste Management and EV Fund

The policy emphasizes adherence to Battery Waste Management Rules and Extended Producer Responsibility, with battery collection centers to be established throughout the city.

A dedicated EV Fund will be established under the Transport Department to support the implementation of this policy. A high-level committee led by the Transport Minister will monitor the progress. All processes, including applications and grievance redressal, will be fully digital and paperless. The government is seeking public feedback on the draft policy, inviting stakeholders to share their comments via email or post within 30 days.

This initiative is part of Delhi's larger strategy to enhance air quality and reduce reliance on fossil fuels. If executed effectively, it could significantly boost the adoption of electric vehicles in the national capital in the years ahead.