Delhi EV Policy 2026: From Incentives to Mandatory Registration - In Force from 1 July

The Delhi government's new electric vehicle policy - the "Delhi Electric Vehicles Policy, 2026" - came into force on 1 July 2026: the Cabinet approved it on 29 June (Cabinet Decision 3349) and it was notified in the Gazette on 30 June. Along with purchase incentives, the policy has, for the first time, phased mandatory registration conditions: from 1 January 2027, new registrations only of electric three-wheelers (L5) and N1 goods vehicles, and from 1 April 2028 only of electric two-wheelers. Chief Minister Rekha Gupta said that adoption was voluntary in the 2020 policy, while the new policy focuses on "phased and mandatory compliance"; a budgetary allocation of Rs 7,000 crore and a total investment outlay of Rs 15,000 crore for implementation (The Hindu, 30 June 2026).

Definition and Scope: Hybrids Excluded

Clause 3.1 of the policy defines an "electric vehicle" as a "Battery Operated Vehicle" - a vehicle that runs wholly on an electric motor and whose traction energy comes wholly from a traction battery located in the vehicle. By this definition, hybrids (which also have an ICE engine) stay outside the scope of incentives [based on the primary text]. The policy covers 2026-2030 (four years) and was notified under Section 67(3) and Section 2(41) of the Motor Vehicles Act, 1988. The preamble cites the CAQM report (19 January 2026) - vehicle emissions are the largest contributor to air pollution in Delhi-NCR (23% in winter), and two-wheelers are about 67% of Delhi's total vehicle fleet. The policy also refers to the Supreme Court's direction for a review of the EV policy in M.C. Mehta v. Union of India.

Purchase Incentives (by Direct Benefit Transfer)

Two-wheelers (ex-showroom price up to Rs 2.25 lakh): Rs 10,000 per kWh in the first year (maximum Rs 30,000), Rs 6,600/kWh in the second year (maximum Rs 20,000), Rs 3,300/kWh in the third year (maximum Rs 10,000); both plug-in and battery-swapping models are eligible. E-autos (L5M): Rs 50,000 / Rs 40,000 / Rs 30,000 respectively (minimum 4 kWh battery); within Delhi's prescribed auto registration quota. N1 electric goods vehicles: in the first year Rs 1,00,000 for GVW above 1.75 tonnes and Rs 50,000 for less (a declining series). A Model Approval Committee will list eligible models in line with norms linked to FAME-2 and PM E-DRIVE; application within 30 days of RC, payment within 60 days; on taking the incentive, no transfer NOC to another state for three years.

Scrapping Incentive, Road Tax and No-Entry Exemption

On crushing Delhi-registered BS-IV and older vehicles (new purchase within 6 months of the Certificate of Deposit from an authorised facility): two-wheeler Rs 10,000; L5M three-wheeler Rs 25,000; car (up to Rs 30 lakh) Rs 1,00,000 - for the first 1,00,000 eligible applicants; N1 truck Rs 50,000; rural service vehicle Rs 15,000. All EVs (bought during the policy period) get a lifetime 100% road tax exemption and waiver of registration fee; electric cars up to Rs 30 lakh get a 100% exemption until 31 March 2030; cars above Rs 30 lakh get no exemption. The first 1,000 private N2 electric trucks registered within three months of the notification are exempt from no-entry time restrictions for 10 years from registration.

Mandatory Electrification and School Bus Targets

From 1 January 2027, new registrations in Delhi only for electric three-wheelers (L5) and N1 goods vehicles; from 1 April 2028, new registrations only for electric two-wheelers. Mandatory rules for four-wheelers are in future planning. School buses come within scope for the first time: 10% of the fleet electric by the end of the second year from notification, 20% by the end of the third year, and 30% by 31 March 2030 - applicable to all buses, whether owned, leased or hired; the Education Department will ensure compliance.

Charging Infrastructure and Battery Ecosystem

Delhi Transco Limited (DTL) is the nodal agency for public charging/swapping - single-window clearance, a digital portal, an SoP; a High-Powered Committee chaired by the Chief Secretary. Every OEM must set up at least one public charging station per dealer (3 charging points for two/three-wheelers, 2 for four-wheelers). On batteries: DPCC monitors EPR compliance under the Battery Waste Management Rules, 2022; battery collection centres in a PPP model; traceability based on a unique battery identifier, and second-life use.

From the Exam Point of View

• GS-3 (Environment/Energy/Urbanisation): a clean-mobility policy linked to vehicle emissions (23% in winter - CAQM); a mixed instrument of incentives + mandates + infrastructure.
• GS-2 (Governance/Federal structure): state-level planning capacity under Section 67(3) of the MV Act; alignment with central schemes (FAME-2, PM E-DRIVE); DBT-based delivery and digital monitoring.
• Current affairs: Cabinet 29 June, Gazette 30 June, effective 1 July 2026; mandatory registration of three-wheelers/N1 in 2027 and two-wheelers in 2028; Rs 7,000 crore allocation / Rs 15,000 crore outlay (Hindu).

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