Delhi CM Rekha Gupta notifies new EV policy; announces subsidies up to ₹1 lakh and road tax waiver
New Delhi, July 1
In a major push towards green mobility and pollution control, Delhi Chief Minister Rekha Gupta on Wednesday notified the city's new Electric Vehicle policy, offering massive subsidies and tax waivers to incentivise the shift away from internal combustion engines.
Under the new policy, the government has announced direct financial incentives across various vehicle categories and a complete waiver of road tax and registration fees for EVs priced below Rs 30 lakhs.
"Today, Delhi's new EV policy has been notified in the Gazette. From today, anyone who buys an EV two-wheeler will receive a subsidy of Rs 30,000 from the government. There will be a subsidy of Rs 50,000 on three-wheelers, and the government has approved a subsidy of Rs 1 lakh on N1 vehicles, commonly known as 'Chota Haathi'," CM Rekha Gupta said in a video.
Addressing concerns regarding existing petrol vehicles, the Chief Minister clarified that there is no immediate ban on currently operational vehicles. However, she outlined a clear roadmap for phasing out new petrol-based registrations in the two- and three-wheeler segments.
"Many people are saying that petrol vehicles will be banned. No! If you have a petrol vehicle, you can continue to drive it without any hindrance for as long as its validity lasts. However, from January 2027, the registration of new petrol three-wheelers will be stopped. From April 2028, new registrations for petrol two-wheelers will not be allowed. For those who already own them, you can continue to drive them comfortably," she explained.
To encourage the disposal of old, polluting vehicles, the policy also introduces scrapping incentives for two-wheelers, three-wheelers, and four-wheelers alike.
"If someone wants to exchange their old vehicle for a new one, the government is also providing scrapping incentives--this applies to two-wheelers, three-wheelers, and four-wheelers alike; incentives are available for all," she said.
She further added, "When we talk about reforms, reducing pollution, and setting examples for other countries, the Delhi government has taken a major step for the city for the first time. If previous governments had taken these actions earlier, perhaps such strict steps wouldn't be necessary now... As you know, the majority of pollution is caused by transport emissions. If we want to make Delhi pollution-free, the government--which is for you--and you, together, will work to make Delhi better."
The Delhi government on Monday approved the Delhi EV Policy 2026, which came into effect from July 1. The policy will remain in force until March 31, 2030. The government estimates that more than Rs 7,000 crore will be invested directly over the next four years, while the overall benefit to citizens, including tax exemptions and EV infrastructure, is expected to exceed Rs 15,000 crore.
— ANI
Reader Comments
I appreciate the intent to reduce pollution, but these subsidies are only for EVs priced below ₹30 lakhs. What about middle-class families who can't afford an EV even with the subsidy? The upfront cost of an electric two-wheeler is still high compared to petrol ones. Also, where's the plan for affordable public charging points in apartment complexes? We need a more inclusive approach.
This is a smart, phased policy. The 2027-2028 deadlines for phasing out new petrol registrations gives the industry and consumers time to transition. I've seen similar moves in California and Europe, but Delhi is doing it with a heavy subsidy carrot. The scrapping incentives are a nice touch too—they'll get the old polluting vehicles off the road faster. Good on Delhi for showing leadership! 🇮🇳
Thank you for clarifying that existing petrol vehicles won't be banned immediately! That was my biggest fear. But honestly, the ₹15,000 crore benefit estimate sounds too good to be true. I hope the government actually spends that money wisely on charging stations and battery recycling plants rather than just subsidies that might not reach the right people. Let's see how it plays out...
I'm a cab driver and own a three-wheeler. This policy is a double-edged sword for us. The subsidy is welcome, but battery replacement costs are still sky-high after 2-3 years. And charging takes too long compared to filling petrol. They should also think about interest-free loans for EV commercial vehicles. Otherwise, this will only benefit the rich who can afford to wait and charge at home. 🤔
S We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.