The Delhi government has introduced a new vehicle rule aimed at reducing air pollution. It will provide a Rs 50,000 subsidy for the first 1,000 cars that need modifying to push people to convert their diesel/petrol cars into electric vehicles (EVs). The move is beneficial for those considering scraping or dumping their old vehicles as they would now receive an upgraded version of their old car along with an incentive.
Delhi’s EV policy 2.0: Govt to pay owners of old fuel cars for conversion into EVs
The Delhi government has introduced a new vehicle rule aimed at reducing air pollution. It will provide a Rs 50,000 subsidy for the first 1,000 cars that need modifying to push people to convert their diesel/petrol cars into electric vehicles (EVs). The move is beneficial for those considering scraping or dumping their old vehicles as they would now receive an upgraded version of their old car along with an incentive.
The incentive comes under Delhi’s latest EV policy 2.0, drafted by the Transport Department. According to an Indian Express report, the latest Delhi EV policy is aimed to encourage more production and use of electric vehicles soon. The Delhi government wants to speed up the transformation of fuel vehicles into cleaner transportation, reduce air pollution, and provide easy access to electric vehicles across the capital.
The current EV policy (originally from 2020) has been extended multiple times as the draft undergoes review and public consultation.
Why could EV policy not be successfully implemented earlier?
In the process of retrofitting, car owners can replace internal combustion engines (ICEs) in their cars fuelled by petrol / diesel with battery-operated electric kits. Though this idea had been pitched before by the AAP government but there was always one issue which did not allow the policy to be fully implemented, that is, the cost of retrofitting. The kits as well as the process of retrofitting both were never cheap.
What are the measures proposed in the draft?
1. Incentives for transforming into EV
-The govt will offer up to Rs 50,000 incentives for owners who retrofit old petrol or diesel cars into electric vehicles.
-Draft suggests incentives (Rs 35,000–Rs 40,000) for transforming petrol fuelled two-wheelers into electric ones.
2. Transformation from Fossil Fuel Vehicles
The draft lists out ways to discard fossil-fuel-powered vehicles, these are:
-No new CNG auto registrations will be allowed from August 15, 2025; existing permits may not be renewed, shifting to e-auto permits.
-Proposed ban on registering new petrol, diesel, and CNG two-wheelers from August 15, 2026.
-Households owning two cars may have to buy only EVs for any additional cars.
3. Public/ Municipal Fleet Electrification
Full electrification of government and municipal vehicles (including waste collection and buses) is targeted by 2027. The New Indian Express
Delhi Transport Corporation (DTC) and other public transport systems are expected to increase EV bus deployment rapidly.
4. Charging Infrastructure/ Ecosystem
The draft policy aims to significantly expand EV charging infrastructure:
Targeting thousands of new public charging points to support widespread EV adoption across the city.
“The plan is under consideration, and a final decision will be taken after Cabinet approval,” the official told the Indian Express. “The incentives will promote and help people to reuse their costly vehicles,” the official added.
The move comes after the Delhi government removed restrictions under Stage III of the Graded Response Action Plan (GRAP).
