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You won't get cash subsidy for EVs in Chandigarh anymore 
The move comes into immediate effect

You won't get cash subsidy for EVs in Chandigarh anymore 

Sep 26, 2026
11:20 am

What's the story

The Chandigarh administration has scrapped the cash subsidy under its Electric Vehicle (EV) Policy, 2022. The decision was announced yesterday, via a notification amending the policy for the fourth time. The move comes into immediate effect and the cash subsidy will only be discontinued after all pending applications received so far through the EV portal are disposed of.

Policy amendment

Changes in eligibility criteria for remaining incentives

The Chandigarh administration has also changed the eligibility criteria for the remaining incentives under its EV policy.

Now, consumers must buy and register an electric vehicle in Chandigarh to avail these benefits.

This revision reverses an earlier provision that allowed permanent Chandigarh residents to buy EVs from anywhere in India and claim incentives if registered in the city.

Incentives

Non-cash benefits under EV policy

The non-cash benefits under Clause 4.1.2 of the EV policy include waiver of road tax and registration fees for eligible EVs registered during the policy period, as well as green number plates for city-registered vehicles.

The policy also offers free public parking for these vehicles across Chandigarh.

The latest decision comes after a review by the UT Electric Vehicle Advisory Committee on August 21, which was chaired by the Chief Secretary and approved by Administrator Gulab Chand Kataria.

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Subsidy details

Original EV policy's subsidy structure

Under the original policy, buyers of the first 2,000 privately owned electric cars were eligible for a subsidy of ₹5,000 per kWh of battery capacity, with a cap at ₹1.50 lakh per vehicle.

For electric two-wheelers, the incentive was set at ₹5,000 per kWh with a cap at ₹30,000.

Buyers of e-cycles were also eligible for a subsidy equivalent to 25% of the vehicle's cost with an upper limit set at ₹4,000.

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