Delhi plans aggressive EV transition with incentives, mandates and ₹7,000 crore investment

Delhi is set to revolutionize its transportation landscape with an ambitious EV Policy 2026. By investing 7,000 crore, the government aims to incentivize electric vehicles, enhance infrastructure, and tackle air pollution, transforming the city into a national leader in sustainable mobility by 2030

Focus
Published30 Jun 2026, 04:46 PM IST
Delhi EV policy.
Delhi EV policy.(HT_PRINT)

The Delhi government’s proposed EV Policy 2026 signals one of the country’s most ambitious state-level transitions towards electric mobility, combining large-scale subsidies, mandatory electrification targets and infrastructure expansion with an estimated financial commitment exceeding 7,000 crore.

The policy, which will remain valid till March 2030, focuses entirely on pure electric vehicles and aims to position Delhi as a national leader in sustainable transportation while addressing the city’s persistent air pollution challenge.

According to the proposal, the government plans to spend over 1,500 crore each on purchase incentives and vehicle scrapping incentives, alongside 1,000 crore for charging infrastructure development. In addition, more than 3,000 crore in road tax and registration fee waivers will effectively be foregone as revenue support for EV buyers.

The draft policy provides for a 100% waiver of road tax and registration fees for all electric vehicles, although four-wheelers priced above 30 lakh will not be eligible for the benefit.

Incentives for electric two-wheelers may reach 30,000 in the first year, while electric three-wheelers could receive up to 50,000 and N1-category electric trucks up to 1 lakh. Scrapping incentives have also been proposed to encourage replacement of older polluting vehicles.

A significant feature of the policy is the introduction of phased mandates for electric-only registrations in selected categories. From January 2027, Delhi plans to allow registration only of electric L5 passenger and goods autos as well as N1 goods carriers. Electric-only registration for two-wheelers is proposed from April 2028 onward.

The policy additionally proposes fleet electrification targets for school buses and incentives for N2 electric trucks carrying between 3.5 and 12 tonnes. The first 1,000 such trucks purchased within three months of policy notification would receive a 10-year exemption from “No Entry” restrictions.

Delhi is also aiming to rapidly scale charging infrastructure, with a target of installing over 30,000 charging points citywide. Officials said all incentives would be distributed through direct benefit transfer mechanisms.

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