Delhi Unveils Draft EV Policy 2026–2030 to Accelerate Shift to Electric Mobility

The Government of Delhi has released its draft Electric Vehicle (EV) Policy for 2026–2030, outlining an ambitious roadmap to accelerate the transition towards electric mobility. The proposed policy includes phased restrictions on petrol vehicles, stricter regulations for fleet operators, financial incentives for buyers, and a significant expansion of charging infrastructure.

Issued by the Transport Department’s EV Cell, the draft policy has been opened for a 30-day public consultation period, inviting feedback from citizens and industry experts before finalisation. The primary objective is to curb vehicular emissions—one of the leading contributors to air pollution in Delhi—particularly during the severe winter smog season.

Phased Transition Away from Petrol Vehicles

The policy sets clear timelines for phasing out petrol-powered vehicles across key segments. From January 1, 2027, only electric three-wheelers will be permitted for new registrations in Delhi.

This will be followed by a complete transition in the two-wheeler segment, with only electric models allowed from April 1, 2028. These measures are aimed at gradually reducing the presence of internal combustion engine vehicles on city roads.

Policy Objectives and Legal Framework

The draft policy focuses on reducing air pollution, promoting clean mobility, and accelerating EV adoption across the capital. Its legal foundation draws from Article 21 of the Indian Constitution, the Environment Protection Act, 1986, the Motor Vehicles Act, 1988, and directives from the Supreme Court of India in the landmark MC Mehta case.

Data from the Commission for Air Quality Management indicates that vehicular emissions account for approximately 23% of winter pollution in the Delhi-NCR region. Two-wheelers alone constitute nearly 67% of the total vehicle population, underscoring the need to prioritise their electrification.

Financial Incentives for EV Buyers

The policy proposes a range of financial incentives through direct benefit transfers. Electric two-wheelers priced up to ₹2.25 lakh will be eligible for subsidies for up to three years, calculated at ₹10,000 per kWh, with a maximum benefit of ₹30,000 in the first year.

Electric three-wheelers, including auto-rickshaws, will receive incentives of up to ₹50,000 in the first year, with reduced benefits in subsequent years. Additionally, electric goods vehicles in the N1 category will be eligible for incentives of up to ₹1 lakh in the initial year, gradually tapering over time.

Scrappage Benefits and Tax Exemptions

To encourage the replacement of older vehicles, the policy introduces scrappage incentives. Owners of BS-IV or older vehicles can avail benefits of ₹10,000 for two-wheelers, ₹25,000 for three-wheelers, ₹1 lakh for cars priced up to ₹30 lakh, and ₹50,000 for goods vehicles, provided they purchase an EV within six months.

The policy also offers 100% exemption on road tax and registration fees for electric vehicles. Full benefits apply to cars priced up to ₹30 lakh, while strong hybrid vehicles will receive a 50% concession. No incentives will be extended to cars priced above ₹30 lakh.

Expansion of Charging Infrastructure

A major thrust has been placed on strengthening charging infrastructure, with Delhi Transco Limited designated as the nodal agency.

The plan includes a single-window clearance system and financial support through central schemes such as PM E-DRIVE. Charging stations will be made mandatory at all vehicle dealerships, with minimum infrastructure requirements based on vehicle categories.

Battery Recycling and Sustainability Measures

The policy emphasises strict compliance with the Battery Waste Management Rules 2022. It proposes the establishment of battery collection centres under public-private partnership models and promotes the adoption of battery tracking systems to ensure environmental sustainability.

Fleet Electrification and Government Mandates

From January 1, 2026, aggregators will not be allowed to onboard new petrol or diesel vehicles. Government departments will also be required to procure only electric vehicles for all new purchases.

Specific electrification targets have been set for school buses—10% by the second year, 20% by the third year, and 30% by March 31, 2030.

Implementation and Timeline

The Transport Department will act as the nodal authority, supported by a dedicated EV Cell. An EV Fund will be established using both state and central resources, while a high-level committee led by the Transport Minister will oversee implementation.

Once notified, the policy will remain in force until March 31, 2030, with provisions for extension or revision based on future requirements.