The Delhi government has introduced EV Policy 2.0 with a greater focus on cleaning up the city’s aging vehicle fleet. Backed by an allocation of Rs 200 crore, the new policy moves away from simple purchase subsidies and instead links most benefits to phasing out old, polluting vehicles.At the heart of the policy is an incentive of up to Rs 1 lakh for private electric cars. However, this benefit comes with clear conditions. It is only available for EVs priced below Rs 15 lakh and will be limited to the first 1 lakh applicants. More importantly, buyers must submit a “certificate of deposit” proving that they have scrapped a Delhi-registered BS-IV or old petrol or diesel vehicle. Without it, high motivation cannot be claimed.
The policy also covers other classes. Electric two-wheelers will get a flat subsidy of Rs 10,000, replacing the earlier battery-linked subsidy model. Electric three-wheelers in the L5M category are eligible for Rs 25,000. In a notable addition, the government is encouraging conversion of existing vehicles, offering a grant of Rs 50,000 to those who convert their petrol or diesel vehicles to EVs using certified kits.Tax benefits remain attractive. Electric vehicles up to Rs 30 lakh will get full exemption on road tax and registration fee till 31 March 2030. However, higher priced EVs will no longer get this discount.The broader push is backed by a Rs 8,374 crore transport budget, aimed at creating a clean mobility ecosystem. Along with incentives, Delhi plans to expand charging infrastructure and expand its fleet of electric buses. Delhi’s fleet of electric buses is expected to grow to 5,800 units by the end of FY27 from the current 4,400 units, with a total bus fleet target of 7,500.
