The UT administration has discontinued the cash subsidy under its Electric Vehicle (EV) Policy, 2022, while retaining other incentives, including exemptions on road tax and registration fees, until further orders.
The decision, notified on September 25 through the fourth amendment to the policy, comes into effect immediately. The cash subsidy will be discontinued after all pending applications received so far through the EV portal are disposed of.
No benefits for vehicle bought outside city
The administration has, however, amended the eligibility criteria for the incentives that continue. From now on, consumers will have to purchase an electric vehicle in Chandigarh and register it in the city to avail themselves of the benefits.
The amendment reverses an earlier provision that allowed permanent Chandigarh residents to purchase EVs from anywhere in India and claim incentives as long as the vehicle was registered in the city.
What are the non-cash benefits
The continuing non-cash incentives under Clause 4.1.2 include waiver of road tax and registration fees for eligible EVs registered during the policy period, as well as green number plates for EVs registered in the city. The policy also provides free public parking for EVs across the city.
The latest decision follows a review of the EV policy by the UT Electric Vehicle Advisory Committee, chaired by the chief secretary, on August 21. Administrator Gulab Chand Kataria subsequently approved the proposed amendments.
{{/usCountry}}The latest decision follows a review of the EV policy by the UT Electric Vehicle Advisory Committee, chaired by the chief secretary, on August 21. Administrator Gulab Chand Kataria subsequently approved the proposed amendments.
{{/usCountry}}The cash subsidy had already become effectively unavailable for electric cars after the quota of 2,000 personal-use cars was exhausted. In May 2025, the administration announced that new buyers would no longer receive the ₹1.5 lakh incentive available for this category.
Under the original policy, buyers of the first 2,000 privately owned electric cars were eligible for a subsidy of ₹5,000 per kWh of battery capacity, capped at ₹1.50 lakh per vehicle. For electric two-wheelers, the incentive was ₹5,000 per kWh, capped at ₹30,000. Buyers of e-cycles were eligible for a subsidy equivalent to 25% of the vehicle’s cost, capped at ₹4,000.
The development comes months after HT reported in February that the administration’s proposal to enhance and resume EV subsidies had been awaiting mandatory clearance from the Union ministry of home affairs for nine months. At the time, the city had more than 20,000 registered EVs, including 4,260 electric cars and around 6,500 electric two-wheelers.
The EV Policy, notified in September 2022 with the aim of making City Beautiful a “Model EV City”, remains in force until September 19, 2027.