The Government of Delhi has unveiled its draft Electric Vehicle (EV) Policy for 2026–2030, outlining an ambitious roadmap aimed at transforming the capital’s mobility ecosystem. The proposed policy focuses on accelerating EV adoption, reducing vehicular pollution, and building a robust infrastructure to support sustainable transport.
With stricter timelines, enhanced incentives, and a strong emphasis on electrification across segments, the draft signals a decisive shift toward cleaner mobility in one of India’s most polluted urban centres.
Gradual Phase-Out of ICE Vehicles
A key highlight of the draft policy is the planned transition away from internal combustion engine (ICE) vehicles in specific categories. The government has proposed that from January 1, 2027, only electric three-wheelers will be eligible for new registrations in Delhi.
This will be followed by a broader shift in the two-wheeler segment. Starting April 1, 2028, new registrations of petrol-powered two-wheelers will be discontinued, allowing only electric models to enter the market.
These timelines reflect a phased but firm approach to reducing emissions from high-volume vehicle segments, which contribute significantly to urban air pollution.
Incentives Through Direct Benefit Transfers
To support this transition, the policy proposes a structured incentive framework delivered through direct benefit transfers (DBT). These benefits will be available to individuals, businesses, and corporate entities, provided the applicant is a resident of Delhi and the vehicle is registered within the city.
The Transport Department will issue detailed procedures for claiming these incentives once the policy is formally notified. This approach ensures transparency and efficient disbursement of subsidies.
Tax Benefits for Electric Cars
The draft policy offers strong incentives for electric car buyers, particularly in the mid-range segment. Electric vehicles priced up to ₹30 lakh (ex-showroom) will be eligible for a complete waiver of road tax and registration fees until March 31, 2030.
However, this benefit will not extend to EVs priced above ₹30 lakh, indicating a targeted approach to encourage mass adoption rather than luxury purchases.
In addition, the policy includes a 50% tax concession for strong hybrid vehicles, acknowledging their role as a transitional technology in the journey toward full electrification.
Scrappage Incentives to Encourage Fleet Renewal
To accelerate the replacement of older, more polluting vehicles, the policy introduces scrappage-linked incentives. Individuals who scrap BS-IV or older vehicles can receive incentives of up to ₹1 lakh when purchasing a new electric car.
This benefit is subject to conditions, including the requirement to complete the EV purchase within six months of receiving a Certificate of Deposit (CoD) from an authorised scrapping facility. The EV must also fall within the specified price range to qualify.
This measure aims to reduce legacy emissions while promoting cleaner alternatives.
Tiered Incentives for Two- and Three-Wheelers
The policy introduces a declining incentive structure for electric two-wheelers over three years, encouraging early adoption. Buyers can avail:
- ₹10,000 per kWh (up to ₹30,000) in the first year
- ₹6,600 per kWh (up to ₹20,000) in the second year
- ₹3,300 per kWh (up to ₹10,000) in the third year
Eligibility is limited to vehicles priced up to ₹2.25 lakh (ex-factory), ensuring that incentives benefit the mass market segment.
For electric auto-rickshaws, the government has proposed financial support starting at ₹50,000 in the first year, tapering to ₹40,000 and ₹30,000 in subsequent years. These incentives apply both to new purchases and replacements of older CNG autos operating under Delhi permits.
Boost for Electric Commercial Vehicles
Recognising the role of logistics in urban emissions, the policy also includes incentives for electric goods vehicles. E-trucks in the N1 category may receive subsidies of up to ₹1 lakh in the first year, followed by reduced incentives in subsequent years.
This initiative is expected to encourage fleet operators to transition toward electric mobility, reducing emissions from last-mile delivery and goods transport.
Electrification of Public and Institutional Transport
The draft policy extends beyond private vehicles to include public and institutional fleets. School buses, for instance, are targeted for gradual electrification, with adoption milestones set at 10% in the second year, 20% in the third year, and 30% by 2030.
In a significant move, all vehicles hired or leased by the government will transition entirely to electric from the date the policy comes into effect. Additionally, all future government vehicle procurements will be exclusively electric.
The policy also outlines a shift toward electric buses for intra-state transport, while leaving room for emerging alternatives such as hydrogen-based mobility solutions.
A Comprehensive Clean Mobility Vision
Overall, the draft EV Policy 2026–2030 represents a comprehensive effort to reshape Delhi’s transportation landscape. By combining regulatory mandates with financial incentives, the government aims to create a supportive ecosystem for EV adoption.
The focus on multiple segments—ranging from personal vehicles to public transport and logistics—ensures a holistic approach to emission reduction. At the same time, the inclusion of hybrid vehicles and phased timelines reflects a balanced transition strategy.
Conclusion
Delhi’s draft EV policy sets an aggressive yet structured path toward cleaner mobility. With clear timelines for phasing out ICE vehicles, attractive incentives, and a strong push for electrification across sectors, the policy has the potential to significantly reduce pollution levels and modernise urban transport.
If implemented effectively, it could position Delhi as a leading model for EV adoption in India.
Summary:
The Delhi Draft EV Policy 2026–2030 outlines a comprehensive plan to accelerate electric mobility through phased restrictions on petrol vehicles, attractive subsidies, tax exemptions, and scrappage incentives. It targets widespread electrification across private, commercial, and public transport segments, aiming to reduce pollution and build a sustainable urban mobility ecosystem by 2030.
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