The Delhi Budget 2026 has proposed a so-called EV Policy 2.0 that prioritises vehicle scrappage over simple subsidy against a purchase, in what is seen as a renewed push for electric mobility in the national capital.
The new framework, which has received an outlay of ₹200 crore in the budget, aims to systematically remove the state’s aging, polluting fleet with incentives strictly tied to decommissioning of older vehicles. To unlock the highest brackets of financial support, buyers must provide a “Certificate of Deposit” to prove that they have scrapped a Delhi-registered BS-IV or older petrol or diesel vehicle.
Delhi EV Policy 2.0
The incentive structure for the first year of the policy includes:
- Private electric cars: Up to ₹100,000 for vehicles priced below ₹15 lakh (limited to the first 100,000 applicants).
- Electric two-wheelers: A flat ₹10,000 incentive, a departure from the previous battery-capacity-linked model.
- Electric three-wheelers: ₹25,000 for the L5M category.
The government has also proposed a ₹50,000 grant for owners who choose to convert their existing petrol/diesel cars into EVs using certified kits rather than buying new ones.
Delhi EV Policy 2.0: Tax Benefits
EVs continue to enjoy 100% waiver on road tax and registration fees till 31 March 2030, but the Delhi government has sought to plug the “luxury loophole”.
Electric cars with an ex-showroom price of up to ₹30 lakh are exempt from road tax and registration fees, but pricier models will attract standard rates.
“Our goal is to ensure that EVs are affordable for every middle-class family,” Chief Minister Rekha Gupta said during the budget session. “Charging an EV should be as easy as charging a mobile phone.”
Delhi EV Policy 2.0: Public transport
Beyond private ownership, the Delhi Budget 2026 has allocated ₹8,374 crore to the transport department, with a heavy emphasis on public electrification.
- The government plans to add 6,130 new electric buses in 2026, aiming for a total fleet of 12,000 electric buses by 2029.
- All 400+ vehicle dealerships in Delhi have to install at least one public charging station on their premises. The aim is to reach 18,000 charging points by the end of 2026.
- A new battery recycling framework has been introduced to manage the projected surge in lithium-ion waste. The Delhi Pollution Control Committee is the nodal agency for “second-life” battery usage.
The Road Ahead
While Delhi has among the highest EV penetration rates in the country, the transition faces hurdles. About ₹140 crore in subsidy claims from the previous policy are pending due to verification delays.
To fix this, Delhi Budget 2026 has proposed integrating all new payouts with the Direct Benefit Transfer and Aadhaar-based e-KYC systems, promising a reduction in processing time from 40 days to under a week.
