Delhi earmarks ₹11k cr for transport, with focus on ‘green and sustainable’ ecosystem

Delhi's budget allocates ₹11,000 crore for transport, focusing on electric vehicles and infrastructure to enhance green mobility and reduce congestion

The Delhi government has earmarked approximately ₹11,000 crore for the transport sector in its 2026-27 budget, with a ₹200 crore allocation for the Electric Vehicle (EV) Policy 2.0, which is currently being finalised, chief minister Rekha Gupta announced during her budget speech on Tuesday.

Delhi CM Rekha Gupta presents the budget. (RAJ K RAJ /HT PHOTO)

This is part of the 12.16% share of ₹12,613 crore allocated under the umbrella of “Transport, Roads & Bridges”.

The transport department has been allocated ₹8,374 crore, with the government focusing on building a “green, sustainable and congestion-free transport system.” The budget outlines a multipronged strategy combining electrification of public transport, expansion of the Metro network, and improvements in road infrastructure.

A key highlight is the scale-up of electric buses.

“The government plans to introduce 6,130 additional electric buses in a phased manner under the PM E-DRIVE scheme. We have also committed to deploying 7,500 buses by March 2027, including 5,800 electric buses, with a long-term target of 13,000 EV buses on Delhi’s roads by 2029,” Gupta said.

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To support this shift, ₹320 crore has been proposed for electrification of bus depots, charging infrastructure, and other capital investments.

Subsidies in public transport continue with ₹450 crore allocated to ensure free travel for women and transgender persons in Delhi Transport Corporation (DTC) buses and cluster services.

“Our government proposes to launch the ‘DURGA’ (Driving Upliftment and Rozgar for Women/ Transgender Green e-Auto) scheme to make women and transgenders self-reliant. In the first phase, during the year 2026–27, assistance will be provided to 1,000 women and 100 transgenders to obtain new auto permits,” said Gupta.

The budget also reinforces investment in rail-based transit, with the government allocating ₹2,885 crore for Phase IV and Phase V projects of the Delhi Metro Rail Corporation (DMRC), even as it continues to clear ₹6,532 crore in past liabilities linked to Metro expansion.

For regional transport, the government has proposed a ₹568-crore spend for the regional rapid transit system (RRTS), chiefly the Delhi-SNB and Delhi-Panipat-Sonipat NaMo Bharat corridors. Once complete, these two projects are expected to cut travel time by up to 60%, officials said.

The government is also strengthening vehicle regulation infrastructure, with three automatic testing stations (ATS) being set up at Nand Nagri, Burari and Tehkhand to conduct fitness checks for up to 650,000 commercial vehicles annually. Five additional ATS facilities will be established at Bawana, Ghazipur, and Dichau Kalan, along with installations at DTC depots, at a cost of ₹50 crore.

The government indicated it will promote integration of emerging mobility options, such as e-bikes, e-autos, and e-taxis to create a “zero-emission, seamless connectivity ecosystem.”

Among the biggest gainers in the revised estimates (RE), as of January, was the transport sector (including roads and bridges). The allocation was raised from ₹12,952 crore in the budget estimate for 2025-26 to ₹16,024 crore in the revised estimate. Transport eventually accounted for about 16% of the total budget, up from 13% previously, making it one of the government’s primary focus areas.

A significant portion of this enhanced outlay was for urban mobility projects, including Metro. The allocation for the DTC was increased by ₹653 crore or 23.5%, from ₹2,780 crore to ₹3,433 crore.

Overall, the transport outlay underscores a shift towards electrified, multimodal mobility, while attempting to address long-standing concerns of congestion and last-mile connectivity.