Delhi to Launch New EV Policy from FY27 with Focus on Subsidies, Scrappage and Neighbourhood Charging

The Delhi government will roll out a new Electric Vehicle (EV) policy from the next financial year, with an emphasis on subsidies, vehicle scrappage incentives and neighbourhood-level charging infrastructure, chief minister Rekha Gupta was quoted as saying by Times of India. The move is aimed at curbing air pollution and accelerating the adoption of cleaner mobility in the national capital. The upcoming policy seeks to position Delhi "as the country's leading EV hub". 

"Our goal is to ensure that EVs are affordable for every middle-class family in Delhi and that charging them is as easy as charging a mobile phone," Gupta was quoted as saying in the report.

Under the proposed framework, the government plans to offer subsidies to narrow the price gap between petrol and diesel vehicles and EVs. Whilst the final incentive structure is still being worked out, officials said details will be disclosed once the policy is notified.

Previous Policy Expired in 2023

Delhi's first EV Policy was notified in 2020 and expired in August 2023. It has since been extended periodically whilst the new framework is being finalised.

Under the earlier policy, electric two-wheelers were eligible for a subsidy of ₹5,000 per kWh, capped at ₹30,000, whilst electric three-wheelers received a flat incentive of ₹30,000. Subsidies for electric cars, capped at ₹1.5 lakh, were limited to the first 1,000 vehicles and were later withdrawn. EVs were also exempt from road tax and registration fees.