The Delhi Budget 2026 has proposed a so-called EV Policy 2.0 that prioritizes vehicle scrappage over simple subsidies against purchase, in what is seen as a renewed push for electric mobility in the national capital.
The new framework, the outlay of which has been received ₹The Rs 200 crore in the budget aims to systematically phase out the state’s old, polluting fleet, while also strictly incentivizing the retirement of old vehicles. To unlock the highest bracket of financial assistance, buyers will have to provide a “deposit certificate” to prove that they have scrapped a Delhi-registered BS-IV or old petrol or diesel vehicle.
Delhi EV Policy 2.0
The incentive structure for the first year of the policy includes:
- Private Electric Cars: till ₹Rs 100,000 for vehicles priced below Rs. ₹₹15 lakh (limited to first 100,000 applicants).
- Electric two-wheeler: flat ₹₹10,000 incentive, a departure from the previous battery-capacity-linked model.
- Electric Tricycle: ₹₹25,000 for the L5M category.
The government has also proposed ₹A grant of Rs 50,000 for owners who choose to convert their existing petrol/diesel cars to EVs using certified kits instead of purchasing new cars.
Delhi EV Policy 2.0: Tax benefits
EVs will continue to enjoy 100% exemption on road tax and registration fees till March 31, 2030, but the Delhi government has sought to remove the “luxury loophole”.
Electric cars with ex-showroom prices up to Rs. ₹Road tax and registration charges up to Rs 30 lakh are exempted, but standard rates will apply on expensive models.
“Our aim is to ensure that EVs are affordable for every middle-class family,” Chief Minister Rekha Gupta said during the budget session. “Charging an EV should be as easy as charging a mobile phone.”
Delhi EV Policy 2.0: Public Transport
Beyond private ownership, allocation is made in Delhi Budget 2026 ₹Rs 8,374 crore to the transport department with a heavy emphasis on public electrification.
- The government plans to add 6,130 new electric buses in 2026, aiming to have a total fleet of 12,000 electric buses by 2029.
- All 400+ vehicle dealerships in Delhi will have to install at least one public charging station in their premises. The target is to reach 18,000 charging points by the end of 2026.
- A new battery recycling framework has been introduced to manage the projected increase in lithium-ion waste. Delhi Pollution Control Committee is the nodal agency for “second-life” battery use.
the way forward
While Delhi has the highest EV penetration rate in the country, the transition faces hurdles. About this ₹Subsidy claims worth Rs 140 crore from the previous policy are pending due to delay in verification.
To fix this, the Delhi Budget 2026 proposes to integrate all new payments with Direct Benefit Transfer and Aadhaar-based e-KYC systems, promising to reduce processing time from 40 days to less than a week.