Delhi's New EV Policy 2026: ₹15,000 Cr Boost for Green Mobility

The Delhi Cabinet has officially approved its comprehensive new Electric Vehicle (EV) Policy 2.0, also known as the Delhi EV Policy 2026-2030, marking a significant stride towards accelerating the capital's transition to clean mobility and combating severe air pollution. The policy, approved on Monday, June 29, 2026, is set to come into effect on July 1, 2026, and will remain active until March 31, 2030. The Delhi government has committed a substantial investment of ₹15,000 crore over the next four years to promote electric vehicles and develop a robust charging infrastructure across the city. This outlay is strategically divided, with approximately ₹7,000 crore allocated for purchase and scrapping incentives and ₹8,000 crore earmarked for infrastructure development and tax concessions. The ambitious policy aims to achieve a full zero-emission transit by March 31, 2030, and targets an impressive 95% of all new vehicle registrations in Delhi to be electric by 2027. Key provisions of the new EV Policy include substantial incentives and mandates designed to encourage rapid EV adoption. A 100% waiver on road tax and registration fees will be provided for electric cars with an ex-showroom price of up to ₹30 lakh. This is a crucial financial benefit for consumers considering electric car purchases. However, it's important to note that the policy explicitly excludes any subsidies or tax benefits for hybrid vehicles, focusing entirely on pure battery-electric platforms to ensure a cleaner transition. Purchase incentives are structured to encourage various vehicle segments. Buyers of electric two-wheelers will receive subsidies of ₹30,000 in the first year, ₹20,000 in the second year, and ₹10,000 in the third year of the policy. For electric three-wheelers, the incentives are higher, offering ₹50,000 in the first year, ₹40,000 in the second, and ₹30,000 in the third. Furthermore, N1 commercial trucks (under 3.5 tonnes) will be eligible for a purchase incentive of up to ₹1 lakh in the first year. To promote the scrapping of older, more polluting vehicles, the policy introduces attractive scrappage incentives. Owners of BS-IV or older four-wheelers who scrap their vehicles and switch to electric alternatives can receive a significant incentive of ₹1 lakh, applicable to the first 1 lakh eligible applicants. Scrappage incentives are also available for two-wheelers (₹10,000), three-wheelers (₹25,000), and N1 trucks (₹50,000). Gramin Seva Units will also benefit from a ₹15,000 scrapping incentive. Perhaps the most impactful aspect of the policy is the introduction of strict deadlines for mandatory EV registration. From January 1, 2027, only electric three-wheelers and N1 trucks (including auto-rickshaws) will be eligible for new registration in Delhi. Following this, from April 1, 2028, all new two-wheeler registrations must be electric, effectively phasing out the registration of new petrol and CNG two-wheelers. Officials have clarified that these restrictions do not apply retroactively to existing petrol vehicles, allowing current owners to use their vehicles legally for their operational lifecycles. Beyond individual vehicle segments, the policy also addresses public transport and infrastructure. School bus operators will be required to convert at least 10% of their fleet to electric within two years of the policy's notification. A critical component of the policy is the planned development of extensive charging infrastructure, with the government aiming to install 32,000 charging points across the city within the next four years. Delhi Transco Ltd. (DTL) has been designated as the nodal agency for public charging infrastructure development. Additionally, the first 1,000 electric N2 trucks (carrying loads from 3.5-12 tonnes) purchased within three months of the policy notification will receive a 10-year exemption from 'No Entry' timings in the capital. To streamline the incentive application process, a dedicated online portal will be developed, enabling applicants to apply for EV-related incentives, which will be disbursed through Direct Benefit Transfer (DBT). This policy builds on Delhi's earlier EV Policy, introduced in August 2020, and aims to further cement Delhi's position as a leader in electric mobility adoption in India and potentially globally. The measures are expected to significantly reduce vehicular emissions, a major contributor to Delhi's air pollution.

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