Delhi EV Policy 2.0: Govt Sets Aside ₹200 Cr For Public EV Fleet Push

The Delhi government has unveiled a new EV Policy to recalibrate its electric mobility strategy by moving away from broad purchase subsidies to a scrappage-linked incentive model.

With a ₹200 Cr allocation in the Delhi Budget 2026-27, the revised policy seeks to accelerate the retirement of high-emission vehicles while doubling down on EV adoption in the national capital.

“I want to emphasise that Delhi is bringing one of the largest EV policies in the country. As I mentioned earlier, around 21% of our budget will be spent as part of the green budget. The goal is to accelerate Delhi’s progress, make it pollution-free, and present it as a model capital for the country,” CM Rekha Gupta added.

Under the new framework, the highest incentives will be available to buyers who scrap older vehicles. To qualify, applicants must provide a scrappage certificate confirming the retirement of a Delhi-registered BS-IV or older petrol or diesel vehicle.

For the first year of implementation, the policy proposes a simplified incentive structure:

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 of 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. It has allocated ₹320 Cr for electrification and charging infrastructure at bus depots.

Additionally, it has allocated ₹8,374 Cr in the 2026 budget for transportation. Under this, it aims to expand its EV fleet to 5,800 electric buses by the end of March 2027 from an EV bus fleet  of 4,300 EV right now.

“We aim to provide seamless connectivity in Delhi, especially last-mile connectivity.The Delhi government is working in a planned manner to achieve this. We are promoting e-bikes, e-autos, e-taxis, and other zero-emission mobility solutions to ensure cleaner transport in Delhi,” Gupta said. 

As per previous reports, the EV policy 2.0 is likely to work around purchase subsidies of up to ₹30,000, scrapping incentives of up to ₹20,000 for old CNG autorickshaws, and potential ban on registration of petrol two-wheelers, starting August 2026.

In a separate announcement, CM Gupta announced that the government will also be working on a dedicated startup and incubation policy. While she did not give much details around the policy,  it is to be noted that the government intended to float a VC fund worth ₹200 Cr under Delhi Startup Policy last year. 

Besides, the draft policy also included provisions like reimbursement on lease rentals, reimbursement on patent design filing as well as a monthly allowance to foster a startup ecosystem that could house at least 5,000 startups by 2035.

Delhi’s High-Tech Push For The Next Fiscal

To lure semiconductor companies, the Delhi government is also working on a dedicated semiconductor policy, as a part of which it will develop better infrastructure. This will push semiconductor companies to set up operations in the city.

Without disclosing the financial commitments under this potential scheme, the CM said that it will promote semiconductor manufacturing, research, and development ecosystem in Delhi. 

Similarly, it is also looking to introduce a dedicated drone policy to promote technologies, research, and high-tech manufacturing in the city. 

The government will also be setting up Centres of Excellence at ITIs (Industrial Training Institutes) in Jahangirpuri, Dheerpur, Shahdara, Narela, and Nand Nagri. It has allocated ₹720 Cr under technical education to build such infrastructure. 

“The Delhi government is taking several steps to strengthen skill development infrastructure. We are moving towards employment-based training. Our goal is that Delhi’s youth should not remain job seekers but become job creators,” Gupta said.

The CM also acknowledged the growing gig economy in the city and announced establishment of lavatories and rest areas for gig workers across the city. The rest areas will be linked to the Atal canteens. The government has also announced the establishment of a gig workers welfare board to address their broader issues.

The post Delhi EV Policy 2.0: Govt Sets Aside ₹200 Cr For Public EV Fleet Push appeared first on Inc42 Media.