Delhi’s EV reset: No tax, scrap bonus & more; draft policy aims for clean, accessible transport, says CM

New Delhi: In a sweeping push to curb air pollution and accelerate clean mobility, the Delhi government on Saturday unveiled a draft Electric Vehicle (EV) Policy 2026–2030, proposing wide-ranging incentives, tax exemptions and infrastructure expansion to boost the adoption of electric vehicles across the national capital. At the heart of the proposed policy is a 100 per cent exemption on road tax and registration fees for electric cars priced up to Rs 30 lakh (ex-showroom), a benefit that will remain valid till March 31, 2030. Cars above this price threshold will not be eligible, while strong hybrid vehicles will receive a 50 per cent tax concession, indicating a phased transition towards full electrification.

Chief Minister Rekha Gupta said the draft policy aims to establish a “clean, accessible and sustainable transport system” in Delhi through a mix of financial incentives, regulatory mandates and infrastructure development. The government has earmarked a total outlay of Rs 3,954.25 crore, including Rs 1,236.25 crore for purchase incentives, Rs 1,718 crore for scrapping incentives and Rs 1,000 crore for charging infrastructure, she added.

Up to Rs 1 lakh scrapping incentive

In a significant move to encourage the replacement of older polluting vehicles, the policy proposes a scrapping incentive of up to Rs 1 lakh for residents purchasing a new electric car after scrapping BS-IV or older vehicles. The benefit, however, will be limited to the first one lakh eligible applicants.

Incentives for electric two-wheelers

Recognising that two-wheelers make up the bulk of Delhi’s vehicle population, the policy introduces a declining incentive structure to promote early adoption. Buyers of electric two-wheelers priced up to Rs 2.25 lakh will receive Rs 10,000 per kWh (up to Rs 30,000) in the first year, which will gradually reduce to Rs 6,600 per kWh (capped at Rs 20,000) in the second year and Rs 3,300 per kWh (up to Rs 10,000) in the third year. ‘From April 1, 2028, only electric two-wheelers will be registered in Delhi.’

No addition of petrol, diesel vehicles to delivery & ride aggregator fleets

The policy also targets high-usage segments such as delivery fleets and public transport. Petrol and diesel vehicles will no longer be added to delivery and ride aggregator fleets from this year, while only electric auto-rickshaws will be registered starting next year. Additionally, at least 10 per cent of school buses must be electric within two years, with a target of 30 per cent by March 2030. Subsidy on electric three-wheelers and goods carriers

Electric three-wheelers and goods carriers will also receive incentives, including subsidies of up to Rs 50,000 for e-autos in the first year and up to Rs 1 lakh for electric goods vehicles.

Charging infrastructure expansion

To support the transition, the government plans a major expansion of EV charging infrastructure, including battery swapping networks. All new public and private construction projects by government bodies will be required to be EV-charging-ready.

With transport emissions contributing nearly half of Delhi’s PM2.5 pollution load—rising to as much as 53 per cent during peak winter months—the policy seeks to directly address one of the city’s largest pollution sources. Experts have welcomed the move, calling it a crucial step toward linking clean air with the right to life.

Implementation will be overseen by an apex committee chaired by the Transport minister, while a high-level panel led by the chief secretary will ensure coordination across departments.

A dedicated digital portal will also be developed to streamline approvals and monitor progress, as the government works toward building a comprehensive EV ecosystem in the national capital.