Rekha Gupta-led Delhi govt introduces draft EV policy, earmarks nearly Rs 4,000 crore (original) (raw)

DELHI NCR

Delhi Chief Minister Rekha Gupta said that 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.

Rekha Gupta-led Delhi govt introduces draft EV policy, earmarks nearly Rs 4,000 crore

Delhi Chief Minister Rekha Gupta.

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The Delhi government on Saturday placed its draft Electric Vehicle (EV) Policy 2026 in the public domain, inviting suggestions and feedback from stakeholders and citizens within 30 days. The policy mandates only electric three-wheelers to be registered in Delhi from 2027 and two-wheelers from 2028. The proposed policy, which will remain open for comments until May 10, aims to accelerate the adoption of electric mobility in the capital city through financial incentives, regulatory measures, and infrastructure expansion.

Delhi 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. Gupta said the policy combines fiscal support, tax exemptions, infrastructure development, and regulatory measures to drive adoption. "The proposed Delhi EV Draft Policy 2026 is a significant step towards establishing a clean, accessible and sustainable transport system in the capital. Extensive financial incentives, tax exemptions, mandatory provisions and infrastructure development have been emphasised to promote electric vehicles in Delhi," the chief minister said.

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 EV charging infrastructure development. Year-wise expenditure has also been outlined, with Rs 965.5 crore planned for the first year, Rs 1,012.75 crore for the second, Rs 1,231.5 crore for the third year, and Rs 744.5 crore for the fourth year.

A key feature of the draft is the phased introduction of mandatory electrification. From January 1, 2027, only electric three-wheelers will be permitted for new registrations, and from April 2028, only electric two-wheelers will be registered in Delhi. The policy also mandates gradual electrification of school buses, targeting 10 percent conversion by the end of the second year, 20 percent by the third year and 30 percent by March 2030. For fleet aggregators, the policy mandates that no conventional ICE vehicles running purely on diesel or petrol will be inducted in the existing fleet from January 2026, while other provisions of the Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme 2023 will be followed.

The city government has also proposed prioritising EVs in its own fleet. All vehicles hired or leased by departments under the Government of NCT of Delhi will be electric, except those granted exemptions. Additionally, all new inter-state buses inducted by the Delhi Transport Corporation (DTC) and the transport department will be electric.

For the first time, the policy also makes provision for recycling infrastructure with the environment department to ensure that vehicle manufacturers (OEMs) and other responsible entities strictly follow the Battery Waste Management Rules, 2022, including proper handling, reporting, and recycling of used batteries under Extended Producer Responsibility. The Delhi Pollution Control Committee (DPCC) will support setting up battery collection centres across Delhi through public-private partnerships, making it easier for people to dispose of used batteries safely. It will also issue clear guidelines for the safe collection, storage, transport, and recycling of batteries. Additionally, companies must regularly report their compliance and track batteries using unique identification systems to enable reuse, second-life applications, and environmentally safe recycling.

Under the draft policy, purchase incentives for electric two-wheelers will be provided in a phased manner based on battery capacity. Vehicles priced up to Rs 2.25 lakh (ex-factory) will be eligible for incentives of up to Rs 30,000 in the first year, Rs 20,000 in the second year, and Rs 10,000 in the third year. Electric three-wheelers (L5M category) will receive incentives of Rs 50,000, Rs 40,000 and Rs 30,000 over three years, while electric four-wheeler goods vehicles (N1 category) will be eligible for incentives of Rs 1 lakh, Rs 75,000, and Rs 50,000 respectively during the same period.

The policy also proposes scrapping incentives to phase out older, polluting vehicles. Benefits include Rs 10,000 for electric two-wheelers, Rs 25,000 for three-wheelers, Rs 1 lakh for non-transport electric cars, and Rs 50,000 for goods vehicles. These incentives will be applicable for vehicles up to BS-IV standards, subject to conditions including scrapping certification and timelines.

All incentives will be disbursed through direct benefit transfer (DBT) to eligible beneficiaries, including individuals and entities with vehicles registered in Delhi. Applicants will be able to apply through a notified system managed by the transport department.

The policy proposes 100 percent exemption from road tax and registration fees for electric vehicles registered in Delhi during the policy period. Electric cars priced up to Rs 30 lakh will be eligible for full exemption until March 2030, while strong hybrid vehicles will receive a 50 percent concession, a provision that is being introduced for the first time. Vehicles priced above Rs 30 lakh will not be eligible for such benefits.

To support infrastructure, the Delhi Transco Limited (DTL) has been designated as the nodal agency for planning and implementation of charging and battery swapping networks. A dedicated digital portal will be developed to streamline approvals, monitoring, and operations.

"DTL shall aggregate demand, proposed locations, and load requirements for public EV charging and battery swapping infrastructure…DTL shall develop, notify, and periodically update Standard Operating Procedures (SoPs) detailing technical standards, approval processes, timelines, service level benchmarks, and monitoring mechanisms for the deployment and operation of public EV charging and swapping infrastructure…DTL shall develop, operate, or integrate a dedicated digital portal…for end-to-end management," the policy states.

The draft policy has been uploaded on the transport department’s website, and suggestions can be submitted via email or post within 30 days. Officials said comments received after the deadline will not be considered.

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