New Delhi, April 11 – In a significant move, the Delhi government on Saturday 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 an incentive of 1 lakh for purchasing new EVs upon scrapping old vehicles.
The draft policy, which also requires at least 10% of school buses to be electrically powered within two years, is primarily aimed at reducing vehicular emissions, which have made Delhi one of the most polluted cities in the world.
The government has proposed a 100% exemption on road tax and registration fees for electric cars with an ex-showroom price of up to Rs 30 lakh, valid until March 31, 2030.
These segments, known for high daily usage, are seen as key contributors to Delhi's pollution.
Cars priced above Rs 30 lakh will not receive these benefits, while strong hybrid vehicles will be eligible for a 50% tax exemption, signaling a transitional approach.
Recognizing that two-wheelers constitute the bulk 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 Rs 2.25 lakh (ex-showroom) will receive an incentive of Rs 10,000 per kilowatt-hour (kWh), up to a maximum of Rs 30,000 in the first year from the date of policy notification.
"In the second year, buyers will receive Rs 6,600 per kWh, capped at Rs 20,000, while in the third year, the incentive will drop to Rs 3,300 per kWh, up to a maximum of Rs 10,000," according to the draft policy.
Meanwhile, only electric two-wheelers will be registered in Delhi from April 1, 2028.
Delhi residents will receive up to Rs 1 lakh as a scrapping incentive for purchasing a new electric car in exchange for scrapping their old BS-IV and older vehicles. The 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 from this year, while only electric auto-rickshaws will be registered from next year.
Chief Minister Rekha Gupta said the draft policy, proposed to be in force 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 said.
"Extensive financial incentives, tax exemptions, mandatory provisions and infrastructure development have been emphasized to promote electric vehicles in Delhi," the chief minister added.
The Delhi government has earmarked a total outlay of Rs 3,954.25 crore for the policy. This includes Rs 1,236.25 crore for purchase incentives, Rs 1,718 crore for scrapping incentives and Rs 1,000 crore for charging infrastructure development, she added.
Transport and vehicular emissions remain the single largest contributor to Delhi's local PM2.5 burden, accounting for nearly half of the pollution load.
During last year's peak winter pollution period, vehicles contributed about 46 per cent to 53 per cent of the city'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 the transport sector takes ownership of its responsibility to provide a livable environment," Dahiya told