Electric car and two-wheeler buyers in Delhi may soon see lower upfront costs, as the state government is proposing fresh subsidies on electric vehicles (EVs) to combat rising air pollution, The Economic Times reported, citing people familiar with the matter.
According to the report, the proposals form part of the Delhi government’s draft EV policy, which is expected to be released for public consultation within the next fortnight. “The EV purchase incentives are expected to take effect from the next financial year and are likely to cover both two- and four-wheelers,” a senior official told ET.
The proposed incentives will add to the existing support offered by the Union Ministry of Heavy Industries, which currently subsidises electric buses,
trucks, and two- and three-wheelers.
Explaining the government’s approach, Delhi Chief Minister Rekha Gupta told ET last week, “Under the forthcoming policy, the government’s primary focus will be on financial incentives. To reduce the significant price difference between petrol-diesel (ICE) vehicles and electric vehicles, adequate subsidies will be provided.”
Gupta also said the government is working on a vehicle scrappage push. “A scrapping incentive scheme is being introduced to remove highly polluting vehicles from the roads,” she said, adding that owners scrapping older petrol or diesel vehicles would receive additional financial benefits when purchasing a new EV, ET reported.
Delhi’s previous EV policy was rolled out in 2020 and continues under extensions. It offered per-kilowatt incentives for two-wheelers, fixed subsidies for three-wheelers, and limited-period incentives for electric cars. Gupta indicated that exemptions on road tax and registration fees for EVs would continue under the new policy.
Air quality in Delhi has remained poor for most of December due to elevated dust and particulate matter levels, prompting restrictions on older petrol and diesel vehicles. Petrol pumps have also been directed to ensure vehicles carry valid pollution under control (PUC) certificates before fuel is dispensed, ET noted.
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