Delhi Draft EV Policy: EVs To Get 100% Road Tax Waiver; Full Tax Exemption For Electric Cars

New Delhi, Apr 11 (KNN) The Delhi government on Saturday released the draft ‘Delhi Electric Vehicle (EV) Policy 2026–2030’, aimed at accelerating the transition to clean mobility and improving air quality in Delhi.

The policy aims to accelerate EV adoption across all vehicle segments, build a robust charging and battery-swapping network, strengthen supply chains including battery recycling, reduce dependence on fossil-fuel vehicles, and ensure transparent and efficient implementation.

The draft EV policy is an extension of the original Delhi EV Policy launched in 2020, which has been extended multiple times after its initial expiry in August 2023.
 
Through an official circular, the Delhi government invited stakeholder and public feedback in 30 days. The policy framework will remain in force until March 31, 2030, unless extended or revised.

Tax Benefits and Cost Relief

The policy provides significant tax benefits, including a 100 per cent exemption on road tax and registration fees for EVs. Electric cars priced up to Rs 30 lakh will receive full exemption, while strong hybrids will get a 50 per cent benefit, with no incentives available for cars above Rs 30 lakh.

Incentives for Adoption

To drive adoption, subsidies for electric two-wheelers will be linked to battery capacity and phased down over time—Rs 10,000 per kWh (up to Rs 30,000) in the first year, Rs 6,600 per kWh (up to Rs 20,000) in the second year, and Rs 3,300 per kWh (up to Rs 10,000) in the third year. 

Electric three-wheeler auto-rickshaws will receive incentives of Rs 50,000, Rs 40,000, and Rs 30,000 over the three years, applicable for new registrations as well as replacement of old CNG autos. 

Electric goods vehicles (N1 category) will be eligible for Rs 1 lakh in the first year, Rs 75,000 in the second, and Rs 50,000 in the third year.

Additional scrapping incentives will be provided for older BS-IV and below vehicles, including Rs 10,000 for two-wheelers, Rs 25,000 for three-wheelers, Rs 1 lakh for cars priced up to Rs 30 lakh, and Rs 50,000 for goods carriers.

Charging Infrastructure and Implementation

For charging infrastructure, Delhi Transco Limited will act as the nodal agency to plan and implement EV charging and battery-swapping networks. Measures include a single-window clearance system, a digital portal for approvals and monitoring, and a high-powered committee for coordination.

Electrification Targets and Regulatory Measures

The policy also mandates phased electrification, allowing only electric three-wheelers from January 2027 and electric two-wheelers from April 2028. 

School buses must achieve 30 per cent electrification by 2030, no new petrol or diesel vehicles will be permitted in aggregator fleets from 2026, and all new government vehicles and intra-city buses will be electric.

Industry participation is a key focus, with Original Equipment Manufacturers required to set up charging stations at dealerships and ensure steady EV supply. 

Battery recycling will be strengthened under the Battery Waste Management Rules, 2022, with the Delhi Pollution Control Committee facilitating collection centres and enforcing Extended Producer Responsibility norms.

Governance and Digital Systems

The policy also establishes a fully digital, paperless system for applications, approvals, and grievance redressal, supported by a dedicated EV Cell under the Transport Department and an EV Fund. Oversight will be provided by a Delhi EV Apex Committee chaired by the Transport Minister.

The draft Delhi Electric Vehicle (EV) Policy 2026 can be accessed at the following link: https://transport.delhi.gov.in/sites/default/files/Transport/marquee-files/ev_policy.pdf

(KNN Bureau)