Delhi EV Policy Promises Subsidies Within 60 Days

New Delhi, India Jul 1, 2026 ALN: New Delhi: The Delhi government has introduced a new Electric Vehicle (EV) Policy aimed at promoting the adoption of electric vehicles in the capital. One of the key features of this policy is the promise of subsidies for buyers of electric vehicles within 60 days of applying for an incentive. This subsidy applies to various categories of vehicles, including electric two-wheelers, three-wheelers (autos), and four-wheeled goods vehicles, with specific pricing thresholds established for eligibility.

Under the new policy, buyers of electric two-wheelers priced up to Rs 2.25 lakh will benefit from direct financial incentives. The initiative is part of a broader effort by the Delhi government to encourage the transition to electric mobility, thereby reducing air pollution and carbon emissions in the city. The policy outlines that all purchase incentives for eligible vehicles will be disbursed through direct benefit transfers to individual buyers, proprietary firms, agencies, and companies that are residents of Delhi only. This targeted approach aims to ensure that the benefits of the policy directly reach those who are purchasing electric vehicles.

A Model Approval Committee has been established under the Transport department of the Delhi government. This committee is tasked with the empanelment of EV models across various eligible vehicle segments for availing incentives and subsidies. The committee will examine and approve vehicle models based on set eligibility criteria, technical specifications, and other conditions outlined in the operational guidelines. This step is crucial to maintain the quality and reliability of the electric vehicles that will qualify for the incentives, ensuring that consumers are supported in their transition to electric mobility.

Only models that have been approved and empanelled by this committee will be eligible for purchase incentives under the policy. This means that consumers must pay attention to which models are listed as eligible when making their purchasing decisions. The application process for the purchase incentive is also time-sensitive; applications must be submitted within 30 days from the date of issuance of the Registration Certificate (RC). Once submitted, the applicable subsidy amount will be disbursed within 60 days, pending verification and fulfillment of eligibility requirements. This streamlined process is designed to enhance the efficiency of the subsidy disbursement, making it easier for consumers to access financial support.

However, the policy also includes specific restrictions. Any vehicle that avails a purchase incentive under the Delhi EV Policy will not be eligible for the issuance of a No Objection Certificate (NOC) for transfer or re-registration outside Delhi for a period of three years from the date of notification of the policy. This restriction is likely aimed at encouraging the uptake of electric vehicles within the city and ensuring that the benefits of the policy are realized locally.

While electric cars are not eligible for purchase incentives under this new policy, they will benefit from exemptions from road tax and registration fees during the policy period, which runs from July 1 to March 31, 2030. This aspect of the policy indicates a differentiated approach towards various types of electric vehicles, focusing on two-wheelers and three-wheelers which are often seen as more accessible and practical for everyday use in urban environments.

The incentive structure for electric two-wheelers is particularly noteworthy. In the first year of the policy, buyers will receive an incentive of Rs 10,000 per kWh, with a maximum subsidy cap of Rs 30,000. This amount is designed to encourage early adoption of electric two-wheelers. The incentives will decrease in subsequent years, with Rs 6,600 per kWh (maximum Rs 20,000) in the second year and Rs 3,300 per kWh (maximum Rs 10,000) in the third year of the policy notification. This tiered incentive structure is intended to create a sense of urgency for potential buyers to purchase electric vehicles sooner rather than later, thereby accelerating the transition to electric mobility.

In addition to two-wheelers, the policy also outlines incentives for electric three-wheelers, commonly used as autos. The incentives for electric three-wheelers will be Rs 50,000, Rs 40,000, and Rs 30,000 in the first, second, and third years of the policy, respectively. However, it is important to note that no incentive will be given to e-autos with battery capacity less than 4kWh. This criterion ensures that the vehicles eligible for incentives are capable of delivering a certain level of performance and utility.

For electric four-wheeled goods carriers, specifically N1 category e-trucks with a Gross Vehicle Weight (GVW) not exceeding 3.5 tons, the incentives will also vary based on weight classifications. In the first year, e-trucks with GVW above 1.75 tons will receive an incentive of Rs one lakh, while those up to 1.75 tons will receive Rs 50,000. The incentive amounts will decrease over the subsequent years, with Rs 75,000 and 37,500 in the second year, and Rs 50,000 and 25,000 in the third year. This structure reflects the government's intent to support the commercial electric vehicle segment, which is critical for urban logistics and transportation.

Moreover, the eligibility of EV models for purchase incentives will be aligned with the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme, the PM E-DRIVE scheme, and other guidelines established by the Government of India or the Delhi government. This alignment is crucial as it ensures consistency in policy implementation and fosters a unified approach towards electric vehicle adoption across different regions and levels of government.

In summary, the Delhi EV Policy represents a significant step towards promoting electric mobility in the capital. With a clear structure for subsidies, a dedicated approval committee, and specific eligibility criteria, the policy aims to enhance consumer confidence in electric vehicles while supporting the broader goals of sustainability and pollution reduction. The implications of this policy could be far-reaching, potentially setting a precedent for other states in India to adopt similar measures as the country continues to navigate its transition towards greener transportation solutions.