Delhi’s New EV Policy May Offer Up to ₹40,000 for Electric Two-Wheelers Delhi EV Policy 2.0: Up to ₹40,000 Subsidy for Two-Wheelers

The Delhi government is set to unveil a revamped Electric Vehicle (EV) Policy 2.0, signalling a stronger push to move the capital away from petrol and diesel vehicles as it grapples with chronic air pollution. The new policy is expected to significantly expand incentives and increase the number of EVs on Delhi’s roads. According to sources familiar with the draft, individuals who replace petrol-powered two-wheelers with electric models could receive subsidies ranging between ₹35,000 and ₹40,000. The proposal is aimed squarely at everyday commuters, particularly middle-class households, for whom upfront EV costs remain a key barrier.

Commercial vehicles are also central to the plan. The draft policy offers incentives for three-wheelers shifting to electric power. In a notable departure from the existing framework, petrol and diesel vehicles priced up to ₹20 lakh may qualify for subsidies if they are converted to electric, reflecting a broader approach to reducing tailpipe emissions. Officials said the draft policy is likely to be placed in the public domain by the first week of January 2026, with implementation expected to begin immediately after the current EV policy expires on December 31.

EV 2.0: What’s on the Table?

At its core, EV Policy 2.0 rests on three pillars: charging infrastructure, battery recycling, and the electrification of public transport.

For the first time, Delhi plans to introduce a structured battery recycling ecosystem to deal with the environmental risks posed by used lithium-ion batteries. The proposal includes organised collection systems, recycling facilities, and safe disposal processes to ensure batteries do not become a new source of pollution.

Charging infrastructure is another major focus. The government has set a target of installing 5,000 public charging stations by 2030, each with four to five charging points. These stations are planned for high-traffic locations such as markets, multi-level parking complexes, residential societies, government buildings, and key arterial roads.

Boost to last-mile connectivity

The draft policy also looks to strengthen last-mile transport options. One proposal under consideration involves deploying compact electric vans with seating for seven passengers, inspired by the existing Gramin Sewa model, in areas where standard buses cannot operate. Additionally, the government is working on a structured route-mapping plan for e-rickshaws to improve efficiency and reduce congestion across the city.

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