100% road tax waiver till 2030, Rs 1 lakh incentives: What Delhi EV policy draft says

Delhi's new EV policy draft brings sweeping tax exemptions, heavy purchase subsidies and strict future EV transition targets. But the government is also seeking public feedback before finalising one of its most ambitious mobility plans yet.

In Short

• Delhi proposes full road tax and registration fee waiver for EVs
• Subsidies offered for electric two-wheelers, autos, and cargo vehicles
• Scrapping incentives introduced to phase out old vehicles

Delhi’s push towards a cleaner transport future has taken a major step with the draft of the EV Policy 2026–2030 placed in the public domain, setting the stage for sweeping tax exemptions and aggressive incentives aimed at accelerating electric vehicle adoption across the capital.

The draft policy, which will remain open for public feedback for 30 days, lays out a long-term roadmap to transform Delhi into an electric mobility hub, backed by a proposed outlay of Rs 3,954.25 crore.

FULL ROAD TAX WAIVER

At the heart of the proposal is a complete relief on ownership costs for electric vehicles.

All EVs will get 100 per cent exemption on road tax and registration fees till March 31, 2030, making ownership significantly cheaper compared to conventional vehicles.

Electric cars priced up to Rs 30 lakh will also enjoy full exemption, while strong hybrid vehicles will receive 50 per cent relief. Cars priced above Rs 30 lakh, however, will not be eligible for any concession.

The policy also links this incentive framework to the broader aim of cutting vehicular emissions and boosting clean mobility adoption in the city.

HEAVY SUBSIDIES FOR TWO-WHEELERS, AUTOS AND CARGO EVS

The draft lays out a structured subsidy model, designed to gradually taper over three years.
For electric two-wheelers priced up to Rs 2.25 lakh, buyers can receive:

• Year 1: up to Rs 30,000
• Year 2: up to Rs 20,000
• Year 3: up to Rs 10,000

Electric three-wheelers, including autos, will be eligible for:

• Year 1: Rs 50,000
• Year 2: Rs 40,000
• Year 3: Rs 30,000

Small electric goods carriers (N1 category) will receive higher support:

• Year 1: Rs 1 lakh
• Year 2: Rs 75,000
• Year 3: Rs 50,000

All subsidies will be transferred directly to beneficiaries through DBT.

SCRAPPING INCENTIVES TO PUSH OLD VEHICLES OFF ROADS

To further speed up EV adoption, the policy introduces scrapping-linked incentives for older vehicles.

• Scooter: Rs 10,000
• Auto: Rs 25,000
• Car: up to Rs 1 lakh (limited beneficiaries)
• Goods vehicles: Rs 50,000

The benefit will apply only when a new EV is purchased within a defined timeframe after scrapping.

CHARGING PUSH AND BATTERY ECOSYSTEM OVERHAUL

The draft policy also focuses heavily on infrastructure expansion.

Key provisions include:

• Mandatory charging facility planning for EV dealers
• Large-scale rollout of public charging stations across the city
• Promotion of battery swapping systems
• Home and workplace charging facilitation

Delhi Transco Limited has been designated as the nodal agency, while the Delhi Pollution Control Committee will oversee battery waste management under the Battery Waste Management Rules 2022.

A tracking system for batteries and dedicated collection centres are also planned.

STRICT FUTURE TIMELINES FOR EV TRANSITION

The policy sets firm deadlines to accelerate the shift away from fossil fuels:

• From January 1, 2027: only electric three-wheelers to be registered
• From April 1, 2028: only electric two-wheelers to be registered
• School buses: 30 per cent electric by 2030
• Ride-hailing platforms like Ola and Uber: no new petrol or diesel vehicles from 2026
• Government fleets: only EVs to be purchased or leased

PUBLIC FEEDBACK INVITED BEFORE FINAL ROLLOUT

The transport department has opened the draft for public suggestions and objections before final notification. Officials say the aim is to refine the framework based on public and expert input before implementation.

Delhi Transport Minister Pankaj Singh said the policy will remain in force till March 31, 2030, with the goal of building a cleaner, more sustainable transport system for the capital. The draft marks a renewed push towards electric mobility, but its final shape will depend on feedback and whether implementation keeps pace with ambition.

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