The Delhi government has introduced the EV Policy 2.0 with a sharper focus on cleaning up the city’s ageing vehicle fleet. Backed by an allocation of Rs 200 crore, the new policy shifts away from simple purchase subsidies and instead links the highest benefits to scrapping older, polluting vehicles.At the centre of the policy is an incentive of up to Rs 1 lakh for private electric cars. However, this benefit comes with clear conditions. It is available only for EVs priced below Rs 15 lakh and will be limited to the first 1 lakh applicants. More importantly, buyers must submit a “Certificate of Deposit” proving that they have scrapped a Delhi-registered BS-IV or older petrol or diesel vehicle. Without this, the top incentive cannot be claimed.
The policy also covers other segments. Electric two-wheelers will receive a flat Rs 10,000 incentive, replacing the earlier battery-linked subsidy model. Electric three-wheelers in the L5M category are eligible for Rs 25,000. In a notable addition, the government is encouraging conversion of existing vehicles, offering a Rs 50,000 grant for those who retrofit their petrol or diesel vehicles into EVs using certified kits.Tax benefits continue to remain attractive. Electric vehicles priced up to Rs 30 lakh will enjoy a full waiver on road tax and registration fees until March 31, 2030. However, higher-priced EVs will no longer get this exemption.The broader push is backed by a Rs 8,374 crore transport budget, aimed at building a cleaner mobility ecosystem. Alongside incentives, Delhi plans to scale up charging infrastructure and expand its electric bus fleet. Delhi’s electric bus fleet is expected to grow from the current 4,400 units to 5,800 by the end of FY27, with the total bus fleet targeted to reach 7,500.
