In New Delhi, on April 11, the Delhi government proposed a comprehensive electric vehicle policy, including zero registration fees and road tax on EVs priced up to 30 lakh, a massive expansion of charging stations, and a 1 lakh incentive for purchasing new EVs upon scrapping older ones.
The draft policy, which also requires at least 10% of school buses to be electric within two years, aims primarily to reduce vehicular emissions, a major contributor to Delhi's air pollution.
The government proposes a 100% exemption on road tax and registration fees for electric cars with a price of up to 30 lakh, valid until March 31, 2030.
These vehicle segments, known for high daily usage, are seen as key contributors to Delhi's pollution.
Cars priced above 30 lakh will not receive this benefit, while strong hybrid vehicles will be eligible for a 50% tax exemption, signaling a transitional approach.
Recognizing that two-wheelers constitute the majority of Delhi's vehicle population, the policy offers declining incentives to encourage early adoption.
A Delhi resident buying an electric two-wheeler priced up to 2.25 lakh (ex-showroom) will receive an incentive of 10,000 per kilowatt-hour (kWh), up to a maximum of 30,000 in the first year from the policy's notification date.
In the second year, buyers will receive 6,600 per kWh, capped at 20,000, while in the third year, the incentive will drop to 3,300 per kWh, up to a maximum of 10,000.
Meanwhile, only electric two-wheelers will be registered in Delhi from April 1, 2028.
Delhi residents will receive up to 1 lakh as a scrapping incentive when purchasing a new electric car in exchange for scrapping their old BS-IV and older vehicles. This benefit is limited to the first 1 lakh eligible applicants.
Petrol and diesel vehicles will no longer be added to delivery and ride aggregator fleets in Delhi, while only electric auto-rickshaws will be registered starting next year.
In addition, all vehicles hired by the Delhi government will be electric once the policy is implemented.
Chief Minister Rekha Gupta said the draft policy, set to be in effect until March 31, 2030, outlines a comprehensive framework to promote clean and sustainable transport in the city.
"The proposed Delhi EV Draft Policy 2026 is a significant step towards establishing a clean, accessible, and sustainable transport system in the capital," she stated.
"Extensive financial incentives, tax exemptions, mandatory provisions, and infrastructure development have been emphasized to promote electric vehicles in Delhi," she added.
The Delhi government has allocated a total budget of 3,954.25 crore for the policy. This includes 1,236.25 crore for purchase incentives, 1,718 crore for scrapping incentives, and 1,000 crore for charging infrastructure development.
Transport and vehicular emissions remain the largest contributors to Delhi's local PM2.5 levels, accounting for nearly half of the pollution load.
During last year's peak winter pollution period, vehicles contributed about 46% to 53% of Delhi's local PM2.5 levels, according to a report by the Centre for Science and Environment released on December 31 last year.
Sunil Dahiya, founder and lead analyst at Envirocatalyst, said the Delhi EV Policy, 2026-2030, anchors the right to clean air directly to the constitutional right to life.
"By addressing vehicular emissions, a primary pollution source, the government is finally ensuring that the transport sector takes ownership of its responsibility to provide a livable environment," Dahiya told