Delhi’s new EV policy: Subsidies up to Rs 1 lakh, tax waivers announced

Delhi CM Rekha Gupta announced a new EV policy with major subsidies: Rs 30k for two-wheelers, Rs 50k for three-wheelers, and Rs 1 lakh for N1 vehicles. It also waives road tax and registration fees and includes scrapping incentives for old vehicles.

In a major push towards green mobility and pollution control, Delhi Chief Minister Rekha Gupta on Wednesday notified the city’s new Electric Vehicle (EV) policy, offering massive subsidies and tax waivers to incentivise the shift away from internal combustion engines. Under the new policy, the government has announced direct financial incentives across various vehicle categories and a complete waiver of road tax and registration fees for EVs priced below Rs 30 lakhs.

Add Asianet Newsable as a Preferred Source

EV Policy Highlights and Subsidies

“Today, Delhi’s new EV policy has been notified in the Gazette. From today, anyone who buys an EV two-wheeler will receive a subsidy of Rs 30,000 from the government. There will be a subsidy of Rs 50,000 on three-wheelers, and the government has approved a subsidy of Rs 1 lakh on N1 vehicles, commonly known as ‘Chota Haathi’,” CM Rekha Gupta said in a video.

Phasing Out New Petrol Vehicles

Addressing concerns regarding existing petrol vehicles, the Chief Minister clarified that there is no immediate ban on currently operational vehicles. However, she outlined a clear roadmap for phasing out new petrol-based registrations in the two- and three-wheeler segments. “Many people are saying that petrol vehicles will be banned. No! If you have a petrol vehicle, you can continue to drive it without any hindrance for as long as its validity lasts. However, from January 2027, the registration of new petrol three-wheelers will be stopped. From April 2028, new registrations for petrol two-wheelers will not be allowed. For those who already own them, you can continue to drive them comfortably,” she explained.

Scrapping Incentives Introduced

To encourage the disposal of old, polluting vehicles, the policy also introduces scrapping incentives for two-wheelers, three-wheelers, and four-wheelers alike. “If someone wants to exchange their old vehicle for a new one, the government is also providing scrapping incentives–this applies to two-wheelers, three-wheelers, and four-wheelers alike; incentives are available for all,” she said.

A Major Step Towards a Pollution-Free Delhi

She further added, “When we talk about reforms, reducing pollution, and setting examples for other countries, the Delhi government has taken a major step for the city for the first time. If previous governments had taken these actions earlier, perhaps such strict steps wouldn’t be necessary now… As you know, the majority of pollution is caused by transport emissions. If we want to make Delhi pollution-free, the government–which is for you–and you, together, will work to make Delhi better.”

Policy Timeline and Financial Outlook

The Delhi government on Monday approved the Delhi EV Policy 2026, which came into effect from July 1. The policy will remain in force until March 31, 2030. The government estimates that more than Rs 7,000 crore will be invested directly over the next four years, while the overall benefit to citizens, including tax exemptions and EV infrastructure, is expected to exceed Rs 15,000 crore. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

Leave a Comment