Petrol bikes, CNG autos targeted in major policy changes in Delhi EV draft

The order will impact millions of commuters and gig workers, but these categories, especially two-wheelers, are among the largest contributors to vehicle pollution in Delhi, and the existing fleet comprises a significant portion of older vehicles that fall below current emission standards.

Officials said stakeholders and citizens have been invited to provide suggestions within 30 days, with the consultation window open till May 10. “Two-wheelers constitute about 67% of the total vehicle stock in Delhi, making their rapid electrification critical to achieving meaningful reduction in vehicle emissions. Additionally, three-wheelers, commercial cars and N1 category goods vehicles exhibit high daily usage and mileage, resulting in disproportionate contribution to urban air pollution,” the policy draft said.

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For private EV car buyers, the government has not renewed its subsidies, but said it will waive road tax and added 50% road tax rebate for hybrid cars. ₹30 million.

Chief Minister Rekha Gupta said the draft policy presents a comprehensive framework combining fiscal incentives, regulatory provisions and infrastructure development to support the shift to clean modes of transport.

He said, “The proposed Delhi EV Draft Policy 2026 is an important step towards establishing a clean, accessible and sustainable transport system in the capital. The emphasis has been on comprehensive financial incentives, tax exemptions, mandatory provisions and infrastructure development to promote electric vehicles in Delhi.”

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This draft comes against the background of the unfinished work of its predecessor. The Delhi EV Policy 2020 expired in August 2023 and was extended several times before the current draft was finalised. It had set a target of 25% EV share in new vehicle registrations by 2025 – a figure well short of the government’s now-expected 13-14%. On charging infrastructure, the 2020 policy had targeted 45,000 charge points across the city; About 10% of that figure currently exists, many of which remain non-functional.

One important change is the lack of subsidies for private EVs. The 2020 policy provided subsidy to the first 10,000 vehicles to be registered after the announcement of the policy.

But the new policy includes incentives for electric two-wheelers, three-wheelers and cargo vehicles. Price of electric two-wheelers up to Rs. ₹Will be eligible for purchase incentives up to Rs 2.25 lakh (ex-factory) ₹30,000 in the first year, ₹20,000 in the second year, and ₹10,000 in the third year. Electric three-wheelers in L5M category will be encouraged ₹50,000, ₹40,000 more ₹Rs 30,000 in three years. Incentives for electric goods vehicles ₹1 lakh, ₹75,000 more ₹50,000 have been proposed over a three-year period.

However, private EVs get some limited relief. The draft proposes 100% exemption from road tax and registration fees for electric vehicles registered in Delhi during the policy period.

price of electric cars up to ₹30 lakh will be eligible for full exemption by March 2030.

For the first time, the policy also proposes 50% road tax concession for powerful hybrid vehicles. vehicles cost more ₹30 lakh will not be eligible for such benefits.

The government has determined the total outlay ₹3,954.25 crore for implementation of the policy. This also includes ₹Rs 1,236.25 crore for purchase incentive, ₹Rs 1,718 crore to end incentives, and ₹Rs 1,000 crore for development of charging infrastructure. The expenditure is distributed over four years ₹965.5 crore plan for the first year, ₹1,012.75 crore for the second, ₹1,231.5 crore for the third, and ₹744.5 crores for the fourth.

Largest single budget item – ₹Rs 1,718 crore – allocated for scrapping existing vehicles, underscoring the scale of the fleet transformation anticipated by the government.

Officials said the policy seeks to combine demand-side incentives with supply-side interventions to accelerate EV adoption across all categories. Apart from mandating electrification of two-wheelers and three-wheelers in a phased manner, the policy also outlines targets for electrification of other segments. School buses are to undergo gradual electrification, with a target of 10% conversion by the end of the second year, 20% by the third year and 30% conversion by March 2030.

For aggregator platforms and delivery service providers, the draft policy states that no new internal combustion engine (ICE) vehicles running solely on petrol or diesel will be included in the existing fleet, a condition enforced through the provisions of the Delhi Motor Vehicle Aggregators and Delivery Service Providers Scheme, 2023.

Transport Minister Pankaj Singh said that the government will also give priority to electrification in its operations. “The government also proposes to give priority to electric vehicles in its fleet. All vehicles hired or leased by departments under the Government of NCT of Delhi will be electric, except for specific exemptions. Additionally, all new inter-state buses inducted by the Delhi Transport Corporation and the Transport Department will be electric.”

Amit Bhatt, India Managing Director of the International Council on Clean Transportation (ICCT), said, “Subsidies have played an important role in kick-starting the EV transition, but global evidence clearly shows that they alone are insufficient to drive large-scale adoption. A shift towards regulatory measures, including the gradual phase-out of ICE vehicles in cities, is necessary. In this context, the Draft Delhi EV Policy 2026 has the potential to be a game changer.”

extended producer responsibility

In a provision that was not present in the previous policy, the draft introduces battery recycling infrastructure requirements placing the onus on vehicle manufacturers and other bound entities to comply with the Battery Waste Management Rules, 2022. The Environment Department will monitor adherence to Extended Producer Responsibility (EPR) norms including reporting, tracking and recycling of used batteries.

Delhi Pollution Control Committee (DPCC) has been tasked with facilitating the setting up of battery collection centers across the city through public-private partnerships. The policy also proposes the use of unique identification systems to track batteries and support reuse and second life applications.

The policy also introduces scrapping incentives aimed at phasing out old vehicles: ₹Rs 10,000 for electric two-wheelers, ₹25,000 for three-wheelers, ₹Rs 1 lakh for non-transport electric cars and ₹50,000 for goods vehicles. The benefits will be applicable on vehicles up to Bharat Stage IV (BS-IV) standards, subject to conditions such as submission of scrapping certificate and adherence to timelines. All incentives will be distributed through Direct Benefit Transfer (DBT).

Delhi Transco Limited (DTL) has been designated as the nodal agency responsible for planning and implementation of the EV charging and battery swapping network. DTL will also develop standard operating procedures covering technical standards, approval processes and monitoring mechanisms supported by a dedicated digital portal. All original equipment manufacturers (OEMs) operating in Delhi will have to set up at least one public EV charging station at each dealership.

It is proposed to create an EV fund to finance the policy from budgetary allocations, central and state government schemes, environment funds and other sources. An apex committee headed by the transport minister will monitor the implementation and utilization of funds, while a high-level committee headed by the chief secretary will coordinate between departments.

The draft of the policy has been uploaded on the website of the Transport Department. Representations received after the deadline of May 10 will not be considered. Once the policy is finalized it will be approved by the Cabinet before being implemented.