Delhi Aims for Clean Future with Ambitious EV Policy 2026

The Delhi government has approved the EV Policy 2026, backed by the Centre, involving scrappage incentives and subsidies for electric vehicles. This initiative, effective until 2030, aims to reduce pollution in the capital by promoting zero-emission vehicles with significant investments and tax exemptions.

In a significant move towards sustainable transportation, the Delhi government on Monday announced its approval of the Delhi EV Policy 2026. Chief Minister Rekha Gupta declared that the policy, supported by the Centre, is now pending final nod from the Lieutenant Governor ahead of its scheduled implementation on July 1, 2026. This policy, designed to remain active until March 31, 2030, emphasizes scrappage incentives along with purchase subsidies to hasten the transition from older, polluting vehicles to zero-emission variants.

The policy's ambition is to transform Delhi into a pollution-free transport hub by encouraging the adoption of Zero Emission Vehicles (ZEVs). Over the next four years, approximately Rs 7,000 crore is expected to be directly invested, while the economic benefits to citizens, including tax exemptions and enhanced EV infrastructure, could surpass Rs 15,000 crore. A standout feature of the policy is the scrappage incentive plan, awarding Rs 10,000 to two-wheeler owners replacing BS-IV or older vehicles, Rs 25,000 to three-wheeler owners, and up to Rs 50,000 for certain truck owners. Four-wheeler owners upgrading to electric vehicles will qualify for a Rs 1 lakh incentive, in addition to existing purchase subsidies.

The government also declared a 100% exemption from road tax and registration fees for all electric vehicles, with restrictions for four-wheelers priced up to Rs 30 lakh. Chief Minister Gupta reported that the policy arose from thorough stakeholder consultations. She added that starting July 1, new vehicle purchasers in Delhi will benefit from this policy, emphasizing the cooperative efforts from the central government led by Prime Minister Narendra Modi. Highlighting the policy's transformative potential, Gupta asserted its role in making Delhi eco-friendly and future-ready, setting targets like 32,000 public EV charging points and phased mandates for electric commercial vehicles to enhance air quality and reduce emissions.