Delhi Chief Minister Rekha Gupta on Monday, 29 June 2025, announced that the Delhi Cabinet has approved the Delhi EV Policy 2026, a comprehensive zero-emission vehicle framework set to take effect from 1 July 2025 and remain in force until 31 March 2030. The policy promises cumulative benefits of approximately ₹15,000 crore to citizens through tax exemptions and EV infrastructure investment.

What the Policy Covers

The policy envisages direct government investment of over ₹7,000 crore over four years for infrastructure upgrades, while tax waivers and incentives worth ₹8,000 crore will be passed on directly to EV buyers. All pure electric vehicles will receive a 100 per cent road tax and registration fee waiver. For four-wheelers, the benefit applies to vehicles with an ex-showroom price of up to ₹30 lakh.

The policy covers the full spectrum of vehicle categories — two-wheelers, three-wheelers, four-wheelers, light goods trucks, and grameen Seva vehicles. Chief Minister Gupta noted that subsidies have been structured specifically to bridge the cost gap between conventional vehicles and EVs, making the switch financially viable for a wider cross-section of Delhi residents.

Pollution Context Behind the Push

According to a study relied upon by the Delhi government, 33 per cent of vehicular pollution in the city originates from commercial vehicles, while 46 per cent comes from two-wheelers and three-wheelers. These figures underline why the policy places particular emphasis on incentivising smaller and commercial vehicle segments, which collectively account for nearly 80 per cent of Delhi's vehicular emissions load.

This comes amid persistent air quality concerns in the capital, where vehicular emissions remain one of the primary contributors to seasonal pollution spikes. The EV policy is positioned as a structural, long-term intervention rather than a seasonal measure.

Infrastructure and Scrapping Focus

Beyond purchase incentives, the policy addresses two critical enablers of EV adoption: charging infrastructure and a vehicle scrapping framework. Officials indicated that expanding the charging network is central to the ₹7,000 crore infrastructure outlay, aiming to eliminate range anxiety — a key deterrent for prospective EV buyers in a dense urban environment like Delhi.

Chief Minister Gupta credited Cabinet Ministers Pankaj Kumar Singh, Ashish Sood, and Manjinder Singh Sirsa for incorporating stakeholder feedback into the final policy design, describing the outcome as capable of revamping the city's transport landscape.

What Happens Next

The policy will formally come into force following approval by Lieutenant Governor Taranjit Singh Sandhu. Once cleared, Delhi will join a small group of Indian cities with a dedicated, multi-year EV transition roadmap backed by significant fiscal commitment. The stated goal is to position Delhi as a pollution-free, smart transport capital — a benchmark that will be closely watched by other state governments crafting their own EV frameworks.