Delhi Govt Proposes ₹50,000 Incentive for Retrofitting Old Vehicles to EVs

According to a report by The Indian Express, the Delhi government is considering incentives for owners to retrofit old petrol and diesel cars into electric vehicles as part of efforts to reduce air pollution. Officials stated that this step could motivate more residents to shift towards EVs instead of scrapping or selling their ageing vehicles outside the city.

The Transport department has included this suggestion in the draft Electric Vehicle Policy 2.0, which aims to boost the share of electric vehicles in new registrations over the coming years. Under the proposal, an incentive of ₹50,000 would be offered for the first 1,000 vehicles converted to electric through retrofitting. The plan awaits final Cabinet approval before implementation.

Retrofitting involves replacing the internal combustion engine with an electric kit, including batteries and motors. Earlier attempts to promote this option faced limited uptake mainly due to high costs, which vary across different vehicle models. A senior official explained that the proposed subsidy intends to make the process more affordable, allowing owners to retain and reuse their vehicles rather than opting for low-value sales or scrapping.

The measure is expected to particularly appeal to owners of premium cars. Officials observed that many individuals with luxury vehicles, such as those costing ₹50 lakh or more, hesitate to scrap them for minimal returns. The incentive could enable them to continue using these high-value assets in an eco-friendly manner.

Currently, petrol vehicles over 15 years old and diesel ones over 10 years old are banned from roads in Delhi, in line with National Green Tribunal and Supreme Court directives to control vehicular emissions, a major source of pollution. Violators face fines or impoundment, with options limited to authorised scrapping or relocation via no-objection certificate.

The draft EV Policy 2.0 also explores incentives for buying new EVs after scrapping end-of-life vehicles at registered facilities. Additional recommendations include raising the research and development fund from ₹5 crore to ₹100 crore for advancements in battery cells and chargers, targeting 12 lakh electric two-wheelers for 70% penetration in three years, higher subsidies for swapping stations, and safety ratings for e-rickshaws and e-carts.

A former official noted that retrofitting suits limited-use vehicles, with viability depending on kit compatibility and gearbox requirements.

Also read: Delhi Gives Green Light to Private Electric Vehicles for Taxi Operations