Delhi Unveils Draft EV Policy 2.0, Proposes Incentives, EV-Only 3W Registrations from 2027

The Delhi Government has unveiled the draft Delhi EV Policy 2.0 (2026–2030) as part of its next-phase push toward clean mobility. The draft policy outlines a comprehensive framework aimed at accelerating electric vehicle adoption, reducing vehicular emissions, and strengthening the supporting ecosystem for electric mobility in the national capital.

The policy, which builds on the earlier 2020 EV policy, cites findings from the Commission for Air Quality Management (CAQM), which attributes around 23 percent of Delhi’s winter air pollution to vehicular emissions, with two-wheelers forming nearly 67 percent of the total vehicle base.

Under the draft EV Policy 2.0, incentives will be disbursed through a Direct Benefit Transfer (DBT) mechanism to Delhi residents, firms, and companies registering vehicles in the capital. Electric two-wheelers priced up to INR 2.25 lakh will be eligible for incentives of INR 10,000 per kWh (capped at INR 30,000) in the first year, INR 6,600 per kWh (up to INR 20,000) in the second year, and INR 3,300 per kWh (up to INR 10,000) in the third year.

Electric three-wheeler auto-rickshaws will receive incentives of INR 50,000 in the first year, INR 40,000 in the second year, and INR 30,000 in the third year, applicable for both new purchases and replacement of older CNG autos operating under Delhi permits. Electric four-wheeler goods vehicles (N1 category) will be eligible for incentives of INR 1 lakh, INR 75,000, and INR 50,000 over the same period, aligned with central schemes such as PM E-DRIVE.

The policy also proposes scrapping incentives for older BS-IV and below vehicles, including INR 10,000 for two-wheelers, INR 25,000 for three-wheelers, INR 50,000 for goods vehicles, and INR 1 lakh for electric cars priced up to INR 30 lakh, subject to purchase within six months of obtaining a Certificate of Deposit. The benefit for electric cars will be limited to the first one lakh applicants.

All EVs registered during the policy period will be eligible for 100 percent exemption from road tax and registration fees. However, for electric cars, this exemption applies only to vehicles priced up to INR 30 lakh, with a 50 percent concession extended to strong hybrid vehicles, while higher-priced cars will not qualify for any exemption.

The draft mandates a phased transition to electric mobility, with only electric three-wheelers allowed for new registrations from January 1, 2027, and only electric two-wheelers from April 1, 2028. Fleet aggregators and delivery operators will not be permitted to induct new petrol or diesel vehicles from January 1, 2026, although BS-VI two-wheelers may be added until the end of 2026.

All government-owned, hired, and leased vehicles will be required to transition to electric from the date of notification, while all new intra-state buses inducted by transport authorities will also be electric, with provisions to adopt cleaner alternatives such as hydrogen if introduced.

To support infrastructure rollout, Delhi Transco Ltd. (DTL) has been designated as the nodal agency for planning and implementation of charging and battery-swapping infrastructure. It will oversee demand aggregation, grid readiness, development of standard operating procedures, and operation of a digital portal for approvals and monitoring, alongside enabling a single-window clearance system.

Original Equipment Manufacturers (OEMs) will be required to ensure adequate EV supply and install at least one public charging station at each dealership with specified minimum charging points. Urban local bodies and agencies will ensure that new infrastructure projects are EV-charging-ready.

On the environmental front, the Delhi Pollution Control Committee (DPCC) will facilitate battery collection centres and enforce compliance with Battery Waste Management Rules, 2022, including Extended Producer Responsibility norms, while promoting a battery traceability ecosystem.

The Transport Department will act as the nodal agency for implementation, supported by an EV Cell and a project management consultant, while a dedicated EV Fund will finance the policy through budgetary allocations, central schemes, and environmental levies. A Delhi EV Apex Committee, chaired by the Transport Minister, will oversee execution.

The policy proposes a fully digital, paperless framework for applications, approvals, and disbursal, and will remain in force until March 31, 2030. The government has invited public feedback until May 10, 2026, through email and postal submissions following its release.