New Delhi: The Delhi Cabinet has approved a new Electric Vehicle (EV) Policy with a budgetary allocation of ₹15,000 crore, marking a major push toward cleaner and sustainable urban mobility in the national capital. Announced by Chief Minister Rekha Gupta, the policy is expected to come into force on July 1, 2026, and will remain effective until March 31, 2030. The government plans to invest the allocated funds over the next four years to accelerate the adoption of electric vehicles and strengthen supporting infrastructure across the city.
According to Transport Commissioner Niharika, the policy focuses primarily on commercial vehicles, two-wheelers, and three-wheelers, which together contribute significantly to Delhi’s air pollution. She noted that commercial goods-carrying vehicles account for around 33% of pollution, while two-wheelers and three-wheelers contribute nearly 46%. The government’s objective is to gradually convert these vehicle categories into electric alternatives.
To encourage EV adoption, the policy introduces phased purchase incentives. Buyers of electric two-wheelers will receive subsidies of ₹30,000 in the first year, ₹20,000 in the second year, and ₹10,000 in the third year. Electric three-wheelers will be eligible for incentives of ₹50,000, ₹40,000, and ₹30,000 over the same period. Additionally, N1 commercial trucks will receive a subsidy of ₹1 lakh during the first year of the scheme.
The policy also includes scrapping incentives for owners replacing older BS-IV or below vehicles with electric models. Incentives range from ₹10,000 for two-wheelers and ₹25,000 for three-wheelers to ₹50,000 for N1 trucks. Gramin Seva Units will receive ₹15,000 for scrapping eligible vehicles, while owners of eligible four-wheelers can claim a scrapping incentive of up to ₹1 lakh upon switching to an electric vehicle.
As part of the transition roadmap, Delhi will allow registration of only electric three-wheelers and N1 commercial trucks from January 1, 2027. Registration of new petrol or diesel two-wheelers will be phased out from April 1, 2028. School bus operators will also be required to convert at least 10% of their fleets to electric vehicles within two years of the policy’s notification.
To support the growing EV ecosystem, the Delhi government plans to install 32,000 charging points over the next four years with funding from both the PM e-Drive scheme and the state budget. A dedicated online portal will also be launched to streamline applications for EV incentives. However, the government clarified that hybrid vehicles will not be eligible for subsidies under the new policy.
