The Delhi government has introduced an updated EV Policy aimed at refining its electric mobility strategy. This new approach moves away from broad purchase subsidies to a model focused on scrappage-linked incentives.
With an allocation of ₹200 crore in the Delhi Budget for 2026-27, the policy intends to expedite the retirement of high-emission vehicles while promoting electric vehicle (EV) adoption throughout the capital.
“Delhi is implementing one of the largest EV policies in the country. Approximately 21% of our budget will be allocated to the green budget, aimed at making Delhi pollution-free and a model capital for the nation,” stated CM Rekha Gupta.
The revised framework offers the most substantial incentives for buyers who scrap older vehicles. Applicants must present a scrappage certificate confirming the retirement of a Delhi-registered BS-IV or older petrol or diesel vehicle.
Incentive Structure for the First Year
- Private Electric Cars: Up to ₹1 lakh for vehicles priced below ₹15 lakh, limited to the first 1 lakh applicants.
- Electric Two-Wheelers: A flat subsidy of ₹10,000, replacing the previous battery-capacity-linked incentive.
- Electric Three-Wheelers: An incentive of ₹25,000.
The government is also promoting the retrofitting of existing internal combustion engine (ICE) vehicles. Owners converting petrol or diesel cars into electric vehicles using certified kits can receive a ₹50,000 grant.
In a bid to transition public transport to electric, ₹320 crore has been allocated for electrification and charging infrastructure at bus depots. The 2026 budget includes ₹8,374 crore for transportation, aiming to expand the EV bus fleet from 4,300 to 5,800 by March 2027.
“Our goal is to ensure seamless connectivity in Delhi, particularly for last-mile transport. We are actively promoting e-bikes, e-autos, e-taxis, and other zero-emission mobility solutions,” Gupta added.
Additionally, the policy may include purchase subsidies of up to ₹30,000 and scrapping incentives of up to ₹20,000 for old CNG autorickshaws, with a potential ban on registering petrol two-wheelers starting August 2026.
In a related announcement, CM Gupta mentioned plans for a dedicated startup and incubation policy, with intentions to establish a VC fund worth ₹200 crore under the Delhi Startup Policy. The draft also includes provisions for reimbursement on lease rentals and patent design filing, aiming to support at least 5,000 startups by 2035.
Furthermore, the government is developing a semiconductor policy to enhance infrastructure and attract semiconductor companies to Delhi. A dedicated drone policy is also in the works to foster high-tech manufacturing and research.
To bolster skill development, the government plans to set up Centres of Excellence at various Industrial Training Institutes, with an allocation of ₹720 crore for technical education. Gupta emphasized the need for employment-based training to transform job seekers into job creators.
Acknowledging the rise of the gig economy, the CM announced the establishment of lavatories and rest areas for gig workers, linked to Atal canteens, along with a welfare board to address their concerns.
