Delhi Draft EV Policy Offers Up to ₹1 Lakh Scrapping Incentive for Electric Cars

The government of Delhi has introduced a draft Electric Vehicle (EV) Policy for 2026–2030 that aims to accelerate the shift toward clean mobility by offering attractive financial incentives. One of the most significant highlights of the proposal is a scrapping incentive of up to ₹1 lakh for individuals who replace their old petrol or diesel cars with new electric vehicles.

Under the draft policy, the incentive will be available to those who scrap Delhi-registered BS-IV or older vehicles and purchase a new electric car within a specified time frame. To qualify, buyers must complete the purchase within six months of receiving a Certificate of Deposit from an authorized scrapping facility. The benefit will be limited to electric cars priced up to ₹30 lakh and will be available only to the first one lakh eligible applicants, ensuring targeted support for early adopters.

In addition to private electric cars, the policy also outlines incentives for other vehicle categories. Electric two-wheeler buyers can receive around ₹10,000 for scrapping older vehicles, while electric three-wheelers are eligible for incentives of up to ₹25,000. For electric goods carriers in the four-wheeler category, a scrapping benefit of ₹50,000 has been proposed under similar conditions.

The incentives will be disbursed through a direct benefit transfer mechanism, ensuring transparency and faster processing for applicants. Importantly, the subsidy will only be granted to the registered owner of the scrapped vehicle, preventing misuse of the scheme and maintaining accountability.

Beyond scrapping incentives, the policy includes several additional measures to make electric vehicles more affordable. These include a 100% exemption from road tax and registration fees for electric cars priced up to ₹30 lakh, which will remain valid until March 2030. This move significantly reduces the upfront cost of EV ownership and is expected to encourage more consumers to shift away from internal combustion engine vehicles.

The broader goal of the policy is to tackle air pollution and promote sustainable transportation in the national capital. Vehicular emissions are a major contributor to pollution levels in the city, and the government is focusing on replacing older, more polluting vehicles with cleaner alternatives.