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Delhi Government Looks for EV Policy Extension Amid New Policy Delays

Written by: Team Angel OneUpdated on: 14 Jul 2025, 9:08 pm IST
The Delhi government is considering a 3-month extension of its existing EV policy, which is going to expire on July 15.
Delhi Government Looks for EV Policy Extension Amid New Policy Delays
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The Delhi government is likely to extend its current Electric Vehicle (EV) policy, launched in August 2020, as the new version is yet to be finalised. The existing policy, originally designed to boost EV adoption and reduce vehicular pollution, has already been extended several times.

As per a news report, the government may push the policy deadline by another 3 months while it completes stakeholder consultations and finalises the upcoming EV Policy 2.0. The Transport Minister had earlier stated that the new version was likely to roll out by next month.

Policy Expiry Sparks Extension Talks

The current EV policy is set to lapse on July 15. Given that the draft of EV Policy 2.0 is still under discussion, the government is considering an interim extension to ensure continuity in incentives and regulatory support.

Both the previous AAP-led government and the current BJP-led administration have supported the policy's goals. The planned extension would give time for more consultations and feedback before the final policy is notified.

Stakeholder and Public Consultations Likely

Officials are reportedly exploring multiple options to strengthen the draft of EV Policy 2.0. As per news reports, one possibility is to conduct detailed stakeholder consultations with industry players, environmental experts, and mobility service providers.

There is also a proposal to release the draft policy in the public domain. This would allow citizens to review and share feedback on the new provisions, helping to make the policy more inclusive and practical.

Core Goals and Targets of EV Policy 2.0

According to the current draft, EV Policy 2.0 retains pollution reduction as its central objective. It plans to target high-usage categories such as 2-wheelers, 3-wheelers, buses, and goods carriers for electrification.

The policy also aims to achieve deeper EV penetration by replacing a large number of fossil fuel-run vehicles and strengthening the infrastructure needed to support them.

Incentives to Encourage Wider Adoption

To boost adoption among women, the draft proposes a subsidy of up to ₹36,000 on electric 2-wheeler purchases. For general buyers, the government may offer a purchase incentive of ₹10,000 per kilowatt-hour, capped at ₹30,000 per vehicle.

These financial benefits are intended to reduce the cost burden and make EVs more attractive to the masses, especially in the two-wheeler segment, which accounts for a large share of city traffic.

Focus on Jobs and Charging Ecosystem

The policy also has an employment component. It aims to create up to 20,000 jobs during the implementation period through manufacturing, servicing, and infrastructure operations.

In addition, it proposes the creation of a city-wide charging network, including battery-swapping stations and battery collection centres. This is expected to improve convenience and address range anxiety among users.

Read More: Government Allocates ₹100 Crore to Boost Sales of Electric Trucks Under PM E-Drive Scheme!

Conclusion

While the EV Policy 2.0 is being refined, the Delhi government is preparing to bridge the gap with a short-term extension of the current framework. Once finalised and approved by the Cabinet, the new policy is set to expand EV adoption, improve infrastructure, and contribute to cleaner air in the capital.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jul 14, 2025, 3:38 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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