Delhi EV Policy 2.0 Allocates ₹200 Crore for Public Fleet Expansion

The Delhi Government has allocated ₹8,374 crore to the Transport Department in its latest budget, with a portion directed towards electric mobility.  As per news reports, ₹200 crore has been set aside to support the adoption of electric vehicles, particularly in public transport. 

The allocation shows a focus on reducing emissions from urban transport, with investments for scaling infrastructure and fleet capacity rather than expanding subsidies alone. 

Electric Bus Targets Outlined 

A significant part of the plan centres on expanding the electric bus fleet. The government intends to induct 6,130 additional e-buses in phases under the PM E-DRIVE scheme. 

Delhi plans to operate 7,500 buses by March 2027, of which 5,800 are expected to be electric. Over a longer horizon, the total number of electric buses is projected to increase to 12,000 by 2029. 

Incentives Linked to Vehicle Scrappage 

The new EV Policy 2.0 introduces a change in incentive structure. Benefits will be linked to the scrapping of older vehicles rather than being offered as upfront subsidies. 

To qualify for higher incentives, buyers will need to submit proof of scrapping BS-IV or older petrol or diesel vehicles registered in Delhi. The approach is intended to phase out older, higher-emission vehicles from the city’s fleet. 

Segment-Wise Incentive Structure 

For the first year, incentives have been specified across vehicle categories. Private electric cars priced below ₹15 lakh will be eligible for incentives of up to ₹1 lakh, capped at 1 lakh beneficiaries. 

Electric 2-wheelers will receive a flat ₹10,000 incentive, while electric 3-wheelers (L5M) are set to get ₹25,000. A separate provision offers ₹50,000 for retrofitting existing internal combustion engine cars into electric vehicles using certified kits. 

Tax Waiver with Price Limit 

Road tax and registration fee waivers for electric vehicles will continue until March 2030. However, the exemption will now apply only to vehicles priced up to ₹30 lakh. 

Vehicles above this threshold will attract standard charges, indicating a move to limit benefits to lower and mid-range segments. 

Read More: PM Surya Ghar Yojana Crosses 26 Lakh Rooftop Solar Installations! 

Conclusion 

The revised policy combines fleet expansion targets with a shift in incentives, placing greater emphasis on scrappage and public transport electrification. 

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