Delhi extends EV Policy 2020 until June 30

Delhi extends its EV Policy 2020 by three months to June 30, ensuring continued incentives for buyers while finalizing the new EV Policy 2026.

New Delhi

The extension proposal was approved by the cabinet earlier this week and the draft of the new policy has been sent to the government for public comment. (HT Archive)

The Delhi government has approved a three-month extension to its ongoing Electric Vehicle (EV) Policy 2020, until June 30 or the notification of a new policy, whichever is earlier, officials aware of the development said. The extension has been proposed to ensure continuity of benefits for EV buyers while the government finalises the upcoming EV Policy 2026, they said.

The extension proposal was approved by the cabinet earlier this week and the draft of the new policy has been sent to the government for public comment, they said.

“The existing policy is being extended for a period of three months to avoid any disruption in incentives and to provide a smooth transition to the upcoming EV policy,” a senior transport department official said.

The cabinet note states that the continuation of the policy will necessitate ₹19 crore towards disbursement of purchase incentives, assuming full uptake by eligible electric vehicle registrations in Delhi. In addition, the government may forgo revenue of around ₹131.37 crore due to continued exemption from road tax and registration fees for EVs, it stated.

Officials said these incentives will remain over and above those provided under central schemes, the official said.

Delhi’s EV policy, first introduced in 2020, has been credited with accelerating the adoption of EVs through subsidies, tax waivers, and support for charging infrastructure. The policy has already been extended multiple times, most recently until March 31. “The extension will ensure that consumers and industry stakeholders continue to benefit from the existing provisions while the new policy is being finalised,” the official said.

Under the current regime, EV buyers are eligible for incentives across vehicle categories, along with a 100% waiver on road tax and registration fees, aimed at reducing the upfront cost of electric vehicles and encouraging a shift away from conventional fuel-based transport.