Delhi's EV Policy 2.0: A Green Revolution in 2026
Delhi's Budget 2026 has unveiled an innovative 'scrappage first' EV Policy 2.0, marking a significant step towards enhancing electric mobility in the city. This new policy aims to not only promote the adoption of electric vehicles (EVs) but also to encourage existing petrol and diesel vehicle owners to transition to greener options. One of the key highlights of this initiative is a ₹50,000 grant provided to those who convert their conventional vehicles into electric ones using certified kits.
In addition to the conversion incentives, the Delhi government has assured that EVs will continue to enjoy a 100% waiver on road tax and registration fees until March 31, 2030. This long-term financial support is expected to make electric vehicles more accessible and appealing to residents. However, the government is also keen on addressing the “luxury loophole” that has been exploited in the past, ensuring that the benefits reach the intended audience.
The allocation of ₹8,374 crore towards the transport department underscores the government's commitment to public electrification. This funding is aimed at expanding the electric public transport infrastructure, making it easier for citizens to opt for sustainable commuting options. With Delhi already having one of the highest EV penetration rates in India, this budget is set to further accelerate the transition to electric mobility.
Despite these ambitious plans, the transition to electric vehicles is not without its challenges. The government is currently facing a backlog of about ₹140 crore in subsidy claims from the previous EV policy due to delays in verification processes. Addressing these issues promptly will be crucial to maintaining public trust and encouraging more people to make the switch to electric vehicles.
Overall, the Delhi Budget 2026 exhibits a strong commitment to fostering a sustainable and environmentally friendly transportation system. By providing financial incentives, tax waivers, and substantial funding for public electrification, the government is paving the way for a greener future in the capital.
