Delhi Govt. To Finally Clear Rs 140 Crore EV Subsidy Backlog Following HC Order

Delhi has announced plans to clear outstanding electric vehicle (EV) subsidy payments worth approximately Rs 140 crore, according to government officials who spoke on Monday. Transport Minister Pankaj Singh confirmed that his department will conduct comprehensive verification of all pending subsidy applications to tackle the accumulated backlog spanning two years, according to news agency PTI.

An administrative source, as quoted by PTI, revealed that authorities are developing a dedicated online platform to facilitate the clearance of outstanding dues. This initiative follows judicial intervention from the Delhi High Court, which issued directives regarding the pending subsidy payments.

Delhi HC Mandates Immediate Action On EV Incentives

On September 3, the Delhi High Court instructed the state government to implement swift measures for distributing promised electric vehicle subsidies to consumers. The court emphasized that administrative complications cannot justify payment delays.

The judicial bench, led by Chief Justice Devendra Kumar Upadhayaya alongside Justice Tushar Rao Gedela, observed that the absence of specific timelines in the Delhi Electric Vehicles Policy of 2020 does not excuse the government from fulfilling its commitments.

Beneficiary Identification Process

Government officials confirmed compliance with the court directive, stating that the transport department has commenced the process of identifying qualifying recipients.

A senior administrative official attributed the delays to political disruptions caused by former Chief Minister Arvind Kejriwal's arrest in connection with an excise policy investigation. The absence of cabinet meetings during this period prevented timely policy extensions.

Strong Adoption Under AAP Govt.

Since the EV Policy's implementation in August 2020 under the previous AAP administration, more than 2.19 lakh vehicles have benefited from tax exemptions. This includes: 1.09 lakh two-wheeler vehicles and 83,724 three-wheeler vehicles.

The government distributed Rs 177 crore in incentives through 2023.

Current Policy Extended Until 2026

Delhi's administration has prolonged the existing Electric Vehicle Policy until March 31, 2026, allowing time for public consultation on the upcoming policy draft. The original policy had expired in August 2023 and has undergone multiple extensions since that time.

Last month, CM Rekha Gupta announced the setup of a specialised committee under Minister Ashish Sood's leadership to develop the next iteration of the electric vehicle policy framework.