Delhi EV Policy 2026 proposes tax waivers, incentives, and phased shift to electric vehicles
Indiatimes April 12, 2026 09:40 PM
The Delhi government, under Chief Minister Rekha Gupta, has proposed the Electric Vehicle (EV) Policy 2026, outlining a comprehensive roadmap to promote clean mobility and reduce vehicular emissions in the capital. The draft policy, which will remain open for public feedback until May 10, 2026, is set to remain in effect until March 31, 2030. The proposed policy introduces several financial incentives aimed at accelerating EV adoption. It offers up to 100 percent exemption on road tax and registration fees for electric vehicles. Additionally, for the first time, strong hybrid vehicles are proposed to receive a 50 percent concession on road tax. The total financial outlay for the policy is estimated at ₹3,954.25 crore, with allocations for purchase incentives, scrapping incentives, and the development of charging infrastructure.
Under the incentive structure, electric two-wheelers may receive subsidies of up to ₹30,000, while electric three-wheelers could get up to ₹50,000. Electric goods vehicles are proposed to receive incentives of up to ₹1 lakh. Scrapping incentives have also been included to encourage the phasing out of older vehicles, with benefits varying across vehicle categories. The policy also sets clear timelines for transitioning to electric mobility. It proposes that only electric three-wheelers will be registered from January 2027, followed by a mandate for only electric two-wheelers from April 2028. Aggregators will not be allowed to add new petrol or diesel vehicles to their fleets starting January 2026. Furthermore, all newly leased or hired government vehicles are proposed to be electric, along with new inter-state buses.
In terms of public transport and institutional use, the policy mandates phased electrification of school buses, targeting 10 percent by the second year, 20 percent by the third year, and 30 percent by 2030. A significant focus has also been placed on infrastructure development. Delhi Transco Limited has been designated as the nodal agency to oversee the expansion of charging and battery-swapping networks across the city. The policy also includes provisions for battery recycling and Extended Producer Responsibility compliance, with the Delhi Pollution Control Committee tasked with establishing collection centres and guidelines. All financial incentives under the policy are proposed to be disbursed through Direct Benefit Transfer mechanisms, ensuring transparency and efficiency in implementation.
