Over 26,000 EV subsidy applications stuck as Delhi waits for new policy

According to officials, 26,862 subsidy applications have piled up over the last 10 months, with only a few processed in that time.

Over 26,800 electric vehicle (EV) owners in Delhi have been waiting for months for their promised subsidies, as the city’s transport department struggles with a massive backlog of pending claims worth over ₹42.5 crore. Officials said the delay stems largely from the prolonged finalisation of the city’s new EV policy, which remains in limbo for nearly two yearseven after the old one was extended earlier this year.

The government aims to raise its earlier target of 25% electric registrations by 2026 under the upcoming policy. (HT Archive)

According to officials, 26,862 subsidy applications have piled up over the last 10 months, with only a few processed in that time.

“The disbursal of EV subsidies slowed significantly after the previous policy lapsed in August 2023. Although it was extended till March 2026, the focus shifted to drafting a new policy framework, and administrative approvals were delayed,” a senior transport official said.

Delhi’s EV policy was among India’s most ambitious, offering purchase incentives of up to ₹30,000 for two-wheelers and ₹1.5 lakh for four-wheelers (HT)

The department has since completed a review of all pending applications and is awaiting fresh approval from the transport minister to restart payments. “We have cleaned up the database to remove duplicate entries. Once approvals come through, subsidies will be released in batches, and the backlog cleared within this fiscal,” the official said.

Launched in August 2020, Delhi’s EV policy was among India’s most ambitious, offering purchase incentives of up to ₹30,000 for two-wheelers and ₹1.5 lakh for four-wheelers, besides waivers on registration fees and road tax. The initiative spurred a surge in electric adoption, with EVs making up over 8% of new vehicle registrations in 2024.

But when the three-year policy term ended in 2023, work began on a revised version to align with market trends, new technologies and central government guidelines. That transition period saw a build-up of subsidy claims, compounded by the Lieutenant Governor’s decision last year to suspend several government consultants — including members of the Delhi EV Cell that processed these claims. Election preparations soon pushed the policy further down the priority list.

“The verification and approval system for subsidies is linked to the policy’s validity. Since the framework had lapsed and a new one was still being drafted, financial clearances were stalled,” another official said.

To streamline future disbursals, the transport department has formed a technical committee to vet all EV models eligible for incentives under the upcoming policy. The panel will assess vehicles based on parameters like battery range, energy efficiency and performance before including them in the approved list.

“This ensures only efficient and high-quality vehicles receive incentives,” the official added. The draft of the new Delhi EV Policy 2.0 is now in the final consultation stage. It is expected to prioritise electrification of two- and three-wheelers, expansion of charging networks and fleet transition for delivery and commercial vehicles.

A new digital subsidy verification system, linked with the national Vahan portal, will also be introduced to reduce manual errors and delays.

Despite the pending payouts, EV adoption in Delhi continues to grow — with over 430,000 electric vehicles now registered, most since 2020. The government aims to raise its earlier target of 25% electric registrations by 2026 under the upcoming policy.