Delhi's EV future: electric bus charging with government buildings in the background.
The Delhi government is set to recalibrate its electric mobility strategy with a focus on incentivizing the retirement of high-emission vehicles. The new EV Policy 2.0 shifts from broad purchase subsidies to a scrappage-linked model, backed by a ₹200 Cr allocation in the Delhi Budget 2026-27.
Chief Minister Rekha Gupta emphasized the commitment to making Delhi a model capital for the country, with approximately 21% of the budget allocated as part of the green budget. The policy prioritizes incentives for buyers who scrap older vehicles, requiring a scrappage certificate confirming the retirement of a Delhi-registered BS-IV or older petrol or diesel vehicle.
Under the new framework, the incentives include:
- Private electric cars: Incentives of up to ₹1 Lakh for vehicles priced below ₹15 Lakh, capped at the first 1 Lakh applicants.
- Electric two-wheelers: A flat ₹10,000 subsidy, replacing the earlier battery-capacity-linked incentive.
- Electric three-wheelers: ₹25,000 incentive.
In addition to new EV purchases, the government is encouraging retrofitting existing internal combustion engine (ICE) vehicles. Owners converting petrol or diesel cars into electric vehicles using certified conversion kits will be eligible for a ₹50,000 grant.
The government is also working towards the complete transition of public transport into EVs, allocating ₹320 Cr for electrification and charging infrastructure at bus depots. An additional ₹8,374 Cr has been earmarked in the 2026 budget for transportation, aiming to expand its EV fleet to 5,800 electric buses by the end of March 2027, up from the current 4,300 EV buses.
The policy may include purchase subsidies of up to ₹30,000, scrapping incentives of up to ₹20,000 for old CNG autorickshaws, and a potential ban on the registration of petrol two-wheelers starting August 2026.
In a separate announcement, CM Gupta mentioned that the government will also be working on a dedicated startup and incubation policy, with intentions to float a VC fund worth ₹200 Cr under the Delhi Startup Policy last year.
To attract semiconductor companies, the Delhi government is developing a dedicated semiconductor policy to enhance infrastructure and promote semiconductor manufacturing, research, and development in Delhi.
Similarly, the government plans to introduce a dedicated drone policy to promote technologies, research, and high-tech manufacturing in the city.
The government will also establish Centres of Excellence at ITIs (Industrial Training Institutes) across Delhi, allocating ₹720 Cr under technical education to build such infrastructure, aiming to transform Delhi’s youth from job seekers to job creators.
Acknowledging the growing gig economy, the CM announced the establishment of lavatories and rest areas for gig workers across the city, linked to Atal canteens, along with a gig workers welfare board to address their broader issues.
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