Delhi Government Proposes ₹50,000 Incentive for EV Conversions

The Delhi government is considering offering ₹50,000 to owners who convert old petrol and diesel cars into electric vehicles, as per The Indian Express report.  

The incentive is proposed for the first 1,000 vehicles that undergo retrofitting. The plan is part of the draft EV Policy 2.0 and is pending Cabinet approval. 

Why the Idea is Being Revisited 

The proposal is meant to give owners of ageing vehicles another option besides scrapping or selling them outside Delhi. Retrofitting involves removing the internal combustion engine and fitting an electric motor and battery system. The option has been discussed earlier but saw limited uptake. 

Restrictions on Older Vehicles 

Delhi does not allow diesel vehicles older than 10 years and petrol vehicles older than 15 years to operate on its roads. The restrictions are based on directions from the National Green Tribunal and the Supreme Court to reduce vehicular pollution. Vehicles found in violation are fined or impounded by enforcement agencies. 

Current Choices for Vehicle Owners 

Owners of such vehicles can either scrap them at authorised vehicle scrapping facilities or obtain a no-objection certificate from the Transport department to sell them in other states. Officials said retrofitting is being examined as an additional route that would allow continued use within the city. 

Cost Remains the Main Barrier 

According to the report, high costs have been the biggest hurdle for retrofitting. Electric conversion kits are priced differently for different vehicle models, making the process expensive. Earlier efforts to promote retrofitting did not gain traction mainly for this reason. 

Other Proposals in the Draft Policy 

The draft EV Policy 2.0 also includes plans to expand Delhi’s electric vehicle ecosystem. The Transport department has proposed increasing the research and development fund from ₹5 crore to ₹100 crore, focusing on battery cells and charging equipment. 

2-Wheelers and Infrastructure 

The policy sets a target to increase electric 2-wheelers in Delhi from 5 lakh to 12 lakh in the coming years. It also proposes raising incentives for battery-swapping stations to ₹6 lakh from ₹1.2 lakh and introducing safety ratings for e-rickshaws and e-carts. 

Read More: Union Budget 2026 To Be Presented on February 1! 

Conclusion 

If approved, the proposed incentive would add another option for owners of older vehicles while supporting the government’s push for electric mobility. 

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