Delhi’s new electric vehicle (EV) policy closes a loophole that allowed buyers to claim the national capital’s EV subsidies before moving their vehicles to other states, even as it retains its plan to stop the registration of new petrol, diesel and CNG (compressed natural gas) vehicles in several categories over the next two years.
The Delhi EV Policy 2026, which was notified on July 1, adds a significant new provision that wasn’t present in the draft. No EV that gets the benefit of the purchase incentive scheme will be able to obtain a no objection certificate (NOC) for transfer/re-registration outside Delhi for three years. The provision seems to be an attempt to ensure that the subsidised EVs remain in Delhi for at least some time for the city to reap the benefits of improved air quality.
The notification also maintains the most significant structural change to the policy. From January 1, 2027, electric versions of three-wheelers and N1 light goods vehicles will be the only ones in these categories eligible for a new registration in Delhi. The same rule will be in effect for all new two-wheelers, starting April 1, 2028. Vehicles registered currently will not be affected.
These provisions demonstrate the metamorphosis of the EV policy in Delhi since its inception in 2020. The previous model was based mainly on purchase incentives and waiving road tax and building charging stations to facilitate EV uptake. The 2026 policy continues with the same incentives and introduces additional conditions, reduces access eligibility and increasingly incorporates registration requirements to influence the transition.
Any comparison with Delhi’s CNG transition more than two decades ago is not exact, but it is instructive. The CNG transition followed a series of Supreme Court orders in the M.C. Mehta air pollution case, and was implemented by successive governments. The Delhi government has notified the new EV policy under powers available under the Motor Vehicles Act, 1988. At the same time, the notification itself cites the Supreme Court’s observations in the M.C. Mehta case while explaining the need to review and revise Delhi’s EV policy.
The sequencing is familiar. The first registration mandates do not cover private cars. Instead, they focus on vehicle categories with high daily utilisation—three-wheelers, light goods carriers and, later, two-wheelers.
The notification cites the latest assessment by the Commission for Air Quality Management to explain that approach. It says vehicular emissions account for about 23 per cent of Delhi’s winter air pollution, making them the single largest contributor. It also notes that two-wheelers account for nearly 67 per cent of the capital’s vehicle population while three-wheelers and N1 goods carriers have higher daily utilisation and contribute disproportionately to urban emissions.
Private cars have been left out of the current round of mandates. Instead, the notification says the government intends to introduce electrification mandates for four-wheelers in future and develop a framework to discourage polluting vehicles using inefficient fuels. No timeline has been specified.
Financial incentives continue, although they reduce over the course of the policy. Purchase incentives for electric two-wheelers range from Rs 10,000 per kilowatt-hour of battery capacity, subject to a maximum of Rs 30,000 in the first year, to Rs 6,600 per kilowatt-hour in the second year and Rs 3,300 per kilowatt-hour in the third year. Incentives for electric auto-rickshaws and N1 goods carriers also reduce each year.
The government has also narrowed the scope of those incentives. The draft policy had proposed extending road-tax concessions to strong hybrid vehicles priced up to Rs 30 lakh. That provision has been dropped from the final notification. The concession is now limited to pure electric vehicles, signalling that Delhi has chosen not to treat strong hybrids as a transition technology.
The notification also provides scrappage incentives linked to the purchase of new EVs. These include Rs 1 lakh for a private electric car with an ex-showroom price of up to Rs 30 lakh replacing a BS-IV or older vehicle; Rs 50,000 for an eligible N1 goods carrier; Rs 25,000 for an electric auto-rickshaw; Rs 10,000 for a two-wheeler; and Rs 15,000 for a Gramin Sewa vehicle, subject to the conditions laid down in the policy.
The final notification is also considerably more prescriptive than the 11-page draft released in April. Expanded to 18 pages, it introduces a Model Approval Committee to determine which EV models qualify for incentives, a 30-day window for subsidy applications, a 60-day timeline for disbursement after verification, the three-year NOC restriction, detailed operational guidelines for charging infrastructure, and a broader institutional framework for implementation.
These registration deadlines had already been proposed in the draft policy published earlier this year. The government invited comments from citizens, manufacturers, fleet operators and other stakeholders before issuing the final notification. Industry responses during the consultation period focused on charging infrastructure, battery recycling, financing and implementation timelines. The principal registration mandates proposed in the draft, however, have largely been retained.
Implementation receives far greater attention in the final notification than in the draft. The policy provides for an EV Cell in the transport department, a Model Approval Committee, a High-Powered Committee headed by the chief secretary and a Delhi EV Apex Committee. It designates Delhi Transco Ltd as the nodal agency for planning and expanding public charging and battery-swapping infrastructure.
The policy extends well beyond private vehicle buyers. All new buses inducted by the Delhi Transport Corporation and the transport department will be electric. Schools will be required to progressively increase the share of electric buses in their fleets. Government departments and public bodies must procure EVs in specified categories while fleet aggregators and delivery service providers face restrictions on inducting new petrol- and diesel-powered vehicles into certain fleet segments. Existing vehicle owners will see no immediate change. The first impact will be on buyers of new vehicles in the categories covered by the registration mandates.
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