Delhi govt unveils new EV policy with subsidies, scrappage incentives

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The Delhi government is set to launch a revamped EV policy from the next financial year with a strong focus on financial incentives and infrastructure support to boost electric vehicle adoption across the national capital. Chief Minister Rekha Gupta announced that the new policy framework will include subsidies for EV buyers, benefits for scrapping old vehicles and expanded charging facilities, aiming to make sustainable mobility more affordable and accessible for residents.

Under the proposed policy, the government will bridge the cost gap between electric vehicles and conventional petrol and diesel vehicles through direct purchase subsidies, though the final incentive structure is still being finalised by a high-level committee headed by the power minister. These incentives are designed to reduce the upfront cost of EVs and encourage wider usage among middle-class families in the city.

A scrappage incentive scheme is also being introduced, under which owners of old, highly polluting petrol and diesel vehicles will receive additional financial benefits if they scrap their vehicles and switch to electric alternatives. Officials say this measure will help remove older combustion engines from city roads while accelerating EV uptake.

Charging infrastructure forms a key pillar of the new policy, with plans to expand neighbourhood-level charging points, battery-swapping facilities and a single-window approval system aimed at making charging as convenient as charging a mobile phone. The emphasis on infrastructure is expected to reduce “range anxiety” and make EV ownership practical for daily commuters.

Delhi’s earlier EV policy, first notified in 2020, had offered subsidies on electric two- and three-wheelers and exemptions from road tax and registration fees, but expired in 2023 and has since been extended multiple times while the new policy draft was prepared. The updated framework is intended to build on those foundations and position Delhi as a leading electric mobility hub in India.

Government sources say the new EV policy will also involve public consultations and expert feedback before final implementation, and will be complemented by measures for safe disposal of used batteries, public-private partnerships for charging networks, and possible targeted incentives for women buyers under specific categories.