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Delhi to revive EV subsidies to curb air pollution
The last EV policy issued by Delhi was in 2020

Delhi to revive EV subsidies to curb air pollution

Dec 24, 2025
11:41 am

What's the story

In a bid to combat air pollution, the Delhi government is mulling subsidies on electric vehicles (EVs), including two-wheelers and cars. The proposal has been included in the draft EV policy that will be released for public consultation in the next two weeks. "The EV purchase incentives are expected to take effect from the next financial year and are likely to cover both two- and four-wheelers," a senior official told the Economic Times.

Subsidy details

Subsidies for 2-wheelers, commercial 3-wheelers

The draft EV policy proposes hefty subsidies for those switching from petrol to electric two-wheelers, with the amount ranging between ₹35,000 and ₹40,000. Commercial three-wheelers will also be heavily subsidized if they switch to EVs. Petrol or diesel vehicles costing up to ₹20 lakh will also qualify for subsidies if converted into electric vehicles under the proposed policy.

Additional measures

Scrapping incentive scheme and tax exemptions

Along with financial incentives, the Delhi government is also working on a scrapping incentive scheme to phase out highly polluting vehicles from the roads. Gupta said those scrapping older petrol or diesel vehicles will get additional financial benefits while buying a new EV. The last EV policy issued by Delhi was in 2020, which provided per-kilowatt incentives for two-wheelers and fixed subsidies for three-wheelers.

Pollution measures

Delhi's air quality crisis and vehicle restrictions

Delhi's air quality has been marred by high levels of dust and particulate matter throughout December, prompting the state government to impose restrictions on older petrol and diesel vehicles. Petrol pumps have also been directed to ensure that vehicle owners have valid pollution under control (PUC) certificates before dispensing fuel. The new EV policy is part of a broader strategy to tackle these pressing environmental challenges.