Delhi has taken a decisive step toward cleaner air with the announcement of EV Policy 2.0 in the Delhi Budget 2026. The government has allocated a dedicated ₹200 crore outlay to drive the adoption of battery-powered vehicles, shifting from earlier approaches that relied heavily on straightforward purchase subsidies.
Unlike the previous framework, which offered direct financial incentives simply for buying an electric vehicle, EV Policy 2.0 introduces a stricter, scrappage-first model. The highest subsidy brackets are now tightly linked to the decommissioning of older, polluting vehicles. Buyers must submit a Certificate of Deposit from an authorised scrapping centre to qualify for the top-tier benefits, proving they have retired a Delhi-registered BS-IV or older petrol or diesel vehicle.
This pivot addresses Delhi’s persistent air quality challenges head-on by accelerating the removal of high-emission vehicles from the roads while encouraging a switch to zero-tailpipe-emission alternatives. It marks a significant evolution in the capital’s clean mobility strategy, combining incentives with tangible environmental gains.
The policy outlines targeted support across vehicle categories:
- Private Electric Cars: Up to ₹1 lakh incentive for vehicles priced below ₹15 lakh, limited to the first 1 lakh applicants. This benefit is conditional on scrapping an eligible old vehicle.
- Electric Two-Wheelers: A flat ₹10,000 incentive, moving away from the earlier battery-capacity-linked model.
- Electric Three-Wheelers (L5M category): ₹25,000 per vehicle.
- Vehicle Conversion/Retrofit: A ₹50,000 grant for owners who convert existing petrol or diesel cars into EVs using certified kits (initially for a limited number of cases).
Additionally, electric vehicles priced up to ₹30 lakh will continue to enjoy 100% exemption on road tax and registration fees until 31 March 2030, though the policy aims to curb benefits for higher-end “luxury” models.
The ₹200 crore allocation supports more than just private vehicles. The budget also proposes inducting 6,130 new electric buses in the coming fiscal year under schemes like PM E-DRIVE. This move aims to expand Delhi’s electric bus fleet significantly — targeting around 5,800–7,500 electric buses by March 2027 and scaling toward a full fleet of approximately 12,000 by 2029. Complementary investments include electrification of bus depots and expansion of public charging and battery-swapping infrastructure.
Plans for a dedicated battery recycling framework, overseen by the Delhi Pollution Control Committee (DPCC), are also expected to form part of the broader policy ecosystem to manage end-of-life EV batteries responsibly.
Delhi’s air pollution has long been exacerbated by its ageing vehicle fleet. By tying substantial incentives to scrappage, EV Policy 2.0 creates a dual benefit: faster EV uptake and systematic retirement of polluting vehicles. Officials hope this “scrappage-linked” approach will deliver more measurable reductions in vehicular emissions compared to standalone purchase subsidies.The policy is set to be finalised and implemented shortly, with public suggestions possibly invited before rollout. Transport officials have indicated it could come into effect within the next one to two months.
With a total transport sector outlay of over ₹8,000 crore in the 2026-27 budget, including funds for roads, Metro expansion, and EV infrastructure, the Delhi government is signalling a strong commitment to sustainable mobility. Whether through cash incentives for private buyers, fleet electrification for public transport, or support for retrofits, EV Policy 2.0 represents a more holistic and environmentally conscious strategy.
For residents considering a switch to electric mobility, the message is clear: scrapping an old vehicle could now unlock meaningful financial support alongside long-term savings on fuel and maintenance — while contributing directly to cleaner air in the capital.As details are fine-tuned and the full policy document is released, Delhi’s EV ecosystem appears poised for accelerated growth in the years leading up to 2030.
