The Delhi government has released the Draft Delhi Electric Vehicle Policy 2.0 (2026–2030), proposing incentives, scrappage benefits and major charging infrastructure expansion to curb transport-related pollution. With vehicles contributing roughly 23% of Delhi’s winter air pollution, the plan allocates ₹3,954.25 crore and is open for public comments until May 10, 2026.
Tax exemptions and purchase incentives
The draft offers full exemption from road tax and registration fees for electric cars priced up to ₹30 lakh, targeting affordability for mainstream buyers. Passenger cars above ₹30 lakh will be excluded from these benefits. Strong hybrid cars costing up to ₹30 lakh would receive a 50% tax concession, a measure intended to ease the transition for buyers considering partial-electrification options.
To accelerate removal of high-emission vehicles, the policy pairs purchase incentives with a scrappage scheme: owners who surrender old petrol or diesel vehicles may receive up to ₹1 lakh for electric cars, ₹50,000 for goods vehicles, ₹25,000 for three-wheelers and ₹10,000 for two-wheelers. Where scrappage is not possible, the government proposes direct benefit transfers (DBT). Under the draft, electric two-wheelers could receive up to ₹30,000 in the first year, while incentives for electric autos and goods carriers are structured to taper over time to promote early adoption.
Phased bans on new petrol and diesel vehicles
The policy sets clear phase-out timelines for new fossil-fuel vehicle registrations. New petrol and diesel three-wheelers would be prohibited from January 1, 2027, and two-wheelers from April 1, 2028. In addition, delivery fleet operators would be barred from adding new petrol or diesel two-wheelers after December 2026, signalling a push toward electrification of last-mile logistics.
Charging network and public transport targets
To support wider EV use, the draft envisions a substantial build-out of charging infrastructure—raising the number of charging points from about 9,000 today to roughly 36,000 by 2030. The government also proposes introducing 11,000 electric buses by 2028 and incentivising EV adoption in public transport and school fleets to reduce emissions from mass transit and commute-related pollution.
Implementation context and past issues
The new policy follows implementation challenges under the earlier EV scheme, notably delays in subsidy disbursal. After intervention by the Delhi High Court, pending payments have been cleared, a development the government says will help restore buyer confidence. The draft’s combination of fiscal incentives, scrappage support and infrastructure targets seeks to address both demand- and supply-side barriers to electrification.
