Delhi EV Policy 2.0: Subsidy For Women, Rs 1 Lakh Incentive For 4-Wheelers

The Delhi government is gearing up to roll out a new Electric Vehicle (EV) Policy 2.0, aimed at fast-tracking clean mobility across the national capital. Draft recommendations, reviewed by the Transport Department, propose sharply increased incentives, support for local manufacturing, and major power infrastructure upgrades to meet the city's growing EV demand.

According to Transport Department officials, the proposed policy is expected to give Delhi its most ambitious EV push yet- combining consumer subsidies, industry incentives, and battery storage plans to accelerate the shift away from petrol and diesel vehicles.

Two-Wheelers Take The Spotlight: Subsidy Of Rs 21,000 For E-Scooters, Rs 30,000 For Women Riders

Electric two-wheelers (e2Ws), the backbone of Delhi's personal mobility, are set to get the biggest boost. Officials said the draft policy recommends a subsidy of Rs 21,000 per e2W, while women buyers may receive a subsidy of Rs 30,000 per vehicle.

The target for e2W adoption is also being raised, from the current five lakh vehicles to 12 lakh over the next three years, reflecting the government's drive to make e-scooters a dominant mode of urban transport.

EV Cars Back In The Game: Rs 1 Lakh For First 27,000 Registrations

For electric four-wheelers, the draft policy aims to revive consumer incentives that had lapsed after the first 1,000 registrations. Under the new framework, private EVs priced below Rs 25 lakh would qualify for subsidies. Buyers of the first 27,000 cars could get Rs 10,000 per kWh of battery, capped at Rs 1 lakh per vehicle, officials said.

"This is designed to encourage mass-market EV adoption rather than luxury purchases," a senior Transport Department official told NDTV.

Retrofit Revolution: Turn Petrol & Diesel Cars Electric

For the first time, the draft policy also proposes incentives for retrofitting existing petrol or diesel cars to electric power. The scheme would offer Rs 50,000 per vehicle for the first 1,000 retrofits, a move officials said could accelerate cleaner mobility without waiting for new car sales.

Scrap And Swap: Old Vehicles Out, Clean Mobility In

EV Policy 2.0 also links adoption to phasing out older vehicles. Subsidies for scrapping old two-wheelers, three-wheelers, and light commercial vehicles are being planned to encourage Delhiites to swap polluting vehicles for cleaner electric alternatives.

Making EVs Affordable: 5 Per Cent Interest Subsidy For Loans

Financing remains a challenge for many EV buyers. To tackle this affordability issue, the draft policy recommends an Interest Subvention Scheme, under which the government would cover 5 per cent of the loan interest for eligible EV buyers. Transport Department officials say that the aim is to help middle-income households and small fleet operators shift to electric vehicles more easily. 

Boosting Local Manufacturing: Delhi Supports Make-in-India EVs

To strengthen domestic manufacturing, EV Policy 2.0 draft recommends financial incentives for companies producing EV components locally, including batteries, chargers, and BMS units. Officials said this aligns with the Centre's Make-in-India initiative and could create jobs in Delhi's extended industrial ecosystem.

Innovation On The Rise: R&D Fund May Jump To Rs 100 Crore

The draft policy also proposes a massive increase in R&D funding, from the current Rs 5 crore to Rs 100 crore. According to officials, this would support innovation in battery technology, charging solutions, and next-generation EV components.

Power Infrastructure Boost: 2.5 GWh Battery Storage By 2030

Large-scale EV adoption will place additional demand on Delhi's power grid. To tackle this, the draft policy includes a plan to add 2.5 GWh of Battery Energy Storage System (BESS) capacity by 2030. Officials said this would help manage peak loads, reduce reliance on expensive peak-hour electricity, and ensure an uninterrupted supply for new EVs.

Mass Adoption In Focus: Target For E2Ws Rises To 12 Lakh

With the combination of higher subsidies, financing support, scrapping incentives, and power infrastructure upgrades, officials believe EV Policy 2.0 could dramatically increase adoption rates in Delhi. The government is aiming to increase the adoption target for electric two-wheelers from 5 lakh to 12 lakh vehicles, reflecting the scale of electrification Delhi wants to achieve in the coming years.