Delhi extends EV policy till November as revised draft awaits clearance

The current EV policy—first introduced in 2020 and lapsed in August 2023—has been extended several times since.

The Delhi government on Tuesday extended its Electric Vehicle (EV) Policy by four months, pushing the new deadline to November 15, as a draft of the new policy is still under review and awaiting approval, senior officials aware of the matter said on Tuesday.

Transport minister Pankaj Singh (PTI)

Transport minister Pankaj Singh said the draft is being overhauled and is likely to take at least four months before it is finalised. “We have extended the existing policy till November 15 for now and may extend it further if necessary,” he said. “We are consulting experts and exploring all feasible options to ensure the public benefits from a cleaner, more sustainable transport system. We’re already seeing a rise in EV registrations and growing public interest.”

The current EV policy—first introduced in 2020 and lapsed in August 2023—has been extended several times since. It currently offers a purchase incentive of 25% (up to ₹5,500) for e-cycles, ₹30,000 for e-rickshaws and e-carts, and ₹5,000 per kWh of battery capacity (capped at ₹30,000) for two-wheelers. Light electric commercial vehicles are also eligible for a subsidy of ₹30,000.

According to officials familiar with the matter, a revised draft has been prepared and discussed with chief minister Rekha Gupta and the transport minister. However, additional changes have been suggested and the draft will undergo another round of revisions. Once updated, it will be opened for public feedback for a minimum of 15 days before being presented to the cabinet for final approval.

“The final version will require clearance from both the cabinet and the lieutenant governor. This process is likely to take a few months,” a senior transport department official said.

The cabinet had earlier discussed the draft on April 15 but held off on approving proposals that included the phasing out of CNG auto-rickshaws and fossil fuel-based two-wheelers within two years. The draft policy envisions 100% electric vehicle adoption in the Capital over the next three years.

Key proposals in the draft include a complete ban on registration of petrol, diesel, and CNG two-wheelers after August 15, 2026, and replacing all CNG-powered auto-rickshaws with electric ones by August 2025.

The revised policy is expected to retain the subsidy cap for more affordable EVs. “As proposed earlier, EVs priced below ₹25 lakh will be eligible for subsidies, while costlier models will have to pay applicable taxes. The idea is to nudge manufacturers toward producing affordable EVs,” said Singh.

Transport department officials said that another point that may be retained from the first draft is that households with two cars will have to mandatorily buy an EV if they plan on buying a third car.

Officials added that the policy will also continue to offer incentives for setting up charging infrastructure and battery swapping stations, alongside subsidies and tax exemptions for EV purchases.