Delhi Plans EV Policy with Incentives for Scrapping Old Vehicles

The Delhi government is preparing to roll out a new electric vehicle (EV) policy aimed at accelerating adoption by offering financial incentives to individuals who scrap old, polluting vehicles and switch to cleaner alternatives. The policy is likely to be announced during the upcoming budget session.

Under the proposed scheme, owners of Delhi-registered BS-IV or older vehicles who scrap them at authorised facilities will be eligible for incentives if they purchase a new EV within six months. Buyers of electric two-wheelers will receive ₹10,000, electric three-wheelers (L5M category) ₹25,000, and private electric cars up to ₹1 lakh. However, the car incentive will be limited to vehicles priced up to ₹15 lakh (ex-factory) and will be available only to the first one lakh applicants.

All incentives will be disbursed through Direct Benefit Transfer (DBT) directly into beneficiaries’ accounts, and only registered owners of scrapped vehicles will be eligible.

In addition, the government plans to provide major relief through exemptions on road tax and registration fees. All EVs registered in Delhi could get a 100% exemption on these charges until March 31, 2030. Electric cars priced up to ₹30 lakh will qualify for full exemption, while higher-priced vehicles will not be eligible, reflecting a focus on mass-market adoption.

The initiative is part of Delhi’s broader efforts to combat air pollution by phasing out older vehicles and promoting sustainable mobility. Despite growing interest, EV penetration remains relatively low compared to petrol and diesel vehicles, and the policy is expected to drive faster adoption in the coming years.