Delhi Approves EV Policy 2026 With ₹1 Lakh Scrappage Incentive

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New policy waives road tax and registration fees, offers up to ₹1 lakh scrappage incentive

June 29, 2026: The Delhi Cabinet has approved the Electric Vehicle (EV) Policy 2026, which is set to come into effect from July 1, 2026, with the objective of reducing air pollution and accelerating the shift to electric mobility. Chief Minister Rekha Gupta announced that owners who scrap their BS-IV cars and purchase a new electric vehicle will receive a government incentive of up to ₹1 lakh. The policy also provides 100% exemption on road tax and registration fees for all new electric vehicles, making EV ownership significantly more affordable.

The new policy introduces several phased measures to encourage cleaner transportation. From January 1, 2027, only electric auto-rickshaws will be eligible for new registration in Delhi, while registrations of new petrol or CNG auto-rickshaws will stop. In another major step, the registration of new petrol-powered two-wheelers is proposed to end from April 1, 2028, although existing petrol two-wheelers will continue to operate under current regulations. The government also plans to rapidly expand public and private charging stations, improve battery infrastructure, and strengthen the overall EV ecosystem.

According to the Delhi government, the EV Policy 2026 is expected to attract nearly ₹15,000 crore in investment over the next four years. The investment is likely to support charging infrastructure, battery technology, manufacturing units, and EV service centres, while generating thousands of employment opportunities. Officials believe the policy will help replace older polluting vehicles with cleaner electric alternatives and position Delhi as a leading hub for sustainable urban mobility.

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