Delhi government proposes EV Policy 2.0: What changes for you?
What's the story
The Delhi government has unveiled its new Electric Vehicle (EV) Policy 2.0 in the 2026 budget. The policy, which comes with an allocation of ₹200 crore, focuses on scrapping old vehicles rather than just offering subsidies for new purchases. To avail maximum financial benefits under this scheme, buyers will have to present a "Certificate of Deposit" showing that they have scrapped their old petrol or diesel vehicles registered in Delhi.
Incentives
What are the incentives?
The first year of the EV Policy 2.0 offers several incentives. Private electric cars costing less than ₹15 lakh can avail a subsidy of up to ₹1 lakh, but only for the first 1 lakh applicants. Electric two-wheelers are eligible for a flat ₹10,000 incentive, unlike earlier when it was based on battery capacity. Meanwhile, electric three-wheelers of the L5M category can get a subsidy of ₹25,000 under this policy.
Policy benefits
Other key highlights of the policy
The EV Policy 2.0 also offers tax benefits such as a 100% waiver on road tax and registration fees for EVs with an ex-showroom price of up to ₹30 lakh till March 31, 2030. However, to close the "luxury loophole," electric cars costing over ₹30 lakh will be charged at normal rates. For public transport, the Delhi government has proposed adding 6,130 new electric buses in 2026 with an aim of having a total of 12,000 by 2029.
Infrastructure development
Charging stations and battery recycling
All vehicle dealerships in Delhi will have to install at least one public charging station on their premises. The government aims to set up 18,000 charging points by the end of 2026. A new battery recycling framework has also been introduced to handle the expected jump in lithium-ion waste. The Delhi Pollution Control Committee will be the nodal agency for "second-life" battery usage under this initiative.
Implementation hurdles
Challenges and solutions
Despite being one of the highest EV-penetrated states in India, Delhi faces challenges in implementing its new EV policy. Around ₹140 crore worth of subsidy claims from the previous policy are pending due to verification delays. To tackle this issue, the Delhi Budget 2026 has proposed linking all new payouts with Direct Benefit Transfer and Aadhaar-based e-KYC systems, lowering processing time from 40 days to less than a week.