The Delhi government plans to roll out a new Electric Vehicle (EV) policy from the next financial year, with a focus on subsidies, vehicle scrappage incentives and neighbourhood-level charging infrastructure, chief minister Rekha Gupta said, according to a local daily.

The policy is intended to address air pollution and support the adoption of electric mobility in the national capital.

The forthcoming policy is designed to support the development of the EV ecosystem in Delhi. "Our goal is to ensure that EVs are affordable for every middle-class family in Delhi and that charging them is as easy as charging a mobile phone," Gupta said.

Proposed policy draft

Under the proposed framework, the government plans to offer subsidies to reduce the price difference between petrol and diesel vehicles and EVs. While the final incentive structure is still under development, officials said that details would be disclosed once the policy is formally notified.

A vehicle scrappage programme also forms part of the policy. According to the chief minister's office, owners who scrap old and highly polluting petrol or diesel vehicles will receive additional financial benefits when purchasing a new EV. However, the incentive amount has not yet been specified.

Strengthening EV infrastructure

Charging infrastructure will be another component of the policy. The government plans to expand charging facilities, particularly within residential colonies. Measures under consideration include a single-window approval system, network expansion, battery-swapping facilities and the scientific disposal of used batteries to reduce charging time and manage environmental impact.

Gupta said that increased EV adoption could contribute to improvements in air quality. "Greater use of EVs will directly reduce PM2.5 and PM10 levels," she said, adding that the government intends to link financial incentives with charging infrastructure to support wider EV usage.

Delhi's first EV Policy was notified in 2020 and expired in August 2023. It has since been extended periodically while the new framework is being finalised. Under the earlier policy, electric two-wheelers were eligible for a subsidy of Rs. 5,000 (US$ 55) per kWh, capped at Rs. 30,000, while electric three-wheelers received a flat incentive of Rs. 30,000.

Subsidies for electric cars, capped at Rs. 150,000, were limited to the first 1,000 vehicles and were later withdrawn. EVs were also exempt from road tax and registration fees.

A high-level committee chaired by power minister Ashish Sood has been reviewing the new EV policy for the past four months. The panel is currently finalising subsidy structures while incorporating expert recommendations.