In a major push towards cleaner transportation and improved air quality, the Delhi government has approved a new Electric Vehicle (EV) Policy that offers significant financial incentives for buyers while laying out a roadmap to gradually replace petrol and CNG-powered vehicles with electric alternatives.
The policy, cleared by the Delhi Cabinet on Monday, proposes exemption from road tax and registration charges for electric cars priced up to Rs 30 lakh. The initiative is aimed at encouraging more residents to switch to zero-emission vehicles as the capital continues to battle worsening air pollution, especially during the winter months.
The policy will now be forwarded to Lieutenant Governor Taranjit Singh Sandhu for final approval. Once cleared, it is expected to come into force from July 1 and remain effective until March 31, 2030.
Major Shift Towards Electric Mobility
The new policy outlines a phased transition away from fossil fuel-powered vehicles. From January 1, 2027, Delhi will register only electric autorickshaws, effectively ending the registration of new petrol and CNG autos.
The government has also announced that registration of new petrol and CNG-powered two-wheelers will gradually come to an end. Beginning April 1, 2028, only electric two-wheelers will be eligible for fresh registration in the national capital.
Officials believe these measures will significantly reduce vehicular emissions, one of the major contributors to Delhi’s deteriorating air quality.
Financial Benefits for EV Buyers
To make electric vehicles more affordable, the government has introduced purchase incentives across multiple vehicle categories.
People buying electric two-wheelers will receive subsidies of Rs 30,000 in the first year, Rs 20,000 in the second year, and Rs 10,000 in the third year of the policy.
Similarly, buyers of electric three-wheelers will be eligible for incentives of Rs 50,000, Rs 40,000, and Rs 30,000 during the first three years.
The policy also offers a purchase incentive of up to Rs 1 lakh for buyers of N1-category electric trucks, which are light commercial vehicles used for transporting goods.
Owners of BS-IV or older four-wheelers who scrap their existing vehicles and replace them with electric models will receive an additional Rs 1 lakh scrapping incentive.
Government officials clarified that hybrid vehicles will not receive any subsidy, as the policy is exclusively focused on promoting fully electric, zero-emission vehicles.
Rs 15,000 Crore Investment Planned
Announcing the Cabinet’s decision, Chief Minister Rekha Gupta described the policy as a significant step towards building a pollution-free Delhi.
“This is truly a historic day. We aim to implement the Delhi EV Policy from July 1. Following the Lieutenant Governor’s approval, the policy will remain in effect until March 31, 2030,” she said.
According to the Chief Minister, the government expects the policy to generate investments and benefits worth nearly Rs 15,000 crore over the next four years.
Around Rs 7,000 crore has been allocated for incentives offered to EV buyers, while another Rs 8,000 crore will be invested in charging infrastructure and tax concessions to accelerate the transition.
32,000 Charging Stations Planned
To support the growing number of electric vehicles, the Delhi government has set an ambitious target of installing 32,000 EV charging points across the city.
Land has already been identified for developing the charging network, and the government will also introduce a dedicated online portal through which residents can apply for purchase incentives and other benefits under the policy.
Wide Coverage Across Vehicle Categories
The EV policy applies to a broad range of vehicles, including two-wheelers, three-wheelers, passenger cars, N1 light commercial trucks and Gramin Seva vehicles.
Officials said there will be no cap on the number of vehicles eligible for incentives, allowing more consumers to benefit from the scheme.
The government believes the policy will not only increase the adoption of electric vehicles but also strengthen charging infrastructure, encourage scrapping of older polluting vehicles and contribute significantly to reducing air pollution across the national capital.
