The Delhi government has launched a re-planned roadmap for electric vehicle travel, the Electric Vehicle Policy 2.0, which shifts the focus from front-end car purchase subsidies to incentives linked to vehicle scrapping. The initiative, which includes Rs 2 billion crore in the 2026 budget, aims to accelerate the phase-out of older, high-emission vehicles while maintaining the momentum of electric mobility in the capital. Unlike earlier policies that directly rewarded the adoption of electric vehicles, the new framework links the highest level of incentives to vouchers that justify the scrapping of older vehicles. The buyer is required to provide a certificate confirming that a BS-IV or earlier fuel vehicle registered in Delhi has been scrapped in order to receive the top benefit.

In the first year of implementation, the policy outlines a simplified incentive structure. It is worth noting that the government also encourages vehicle modification. Car owners who use the certification kit to convert their existing fuel-fueled vehicles to electric vehicles can receive a subsidy of Rs 50000. While Delhi continues to offer full reductions in road tax and registration fees for electric vehicles until March 2030, the policy also introduces a price cap.

A considerable part of the total transport budget (about Rs 83.74 billion) is spent on public transport electrification. Under the phased progress, 6130 new electric buses will be introduced in fiscal years 2026-2027. The government plans to deploy 7500 buses, including 5800 electric buses, by March 2027. The long-term goal is to reach 12000 electric buses by 2029.

Charging infrastructure will also expand rapidly. All car dealers in Delhi will be required to install at least one public charging station, helping to achieve the target of 18000 charging stations by 2026. In response to the environmental impact of large-scale adoption of electric vehicles, the battery recycling ecosystem is gradually being standardized. The Delhi Pollution Control Board will be responsible for overseeing the secondary use and disposal of lithium-ion batteries. In addition, special funds of Rs 3.2 billion crore have been allocated for the electrification of the tram station and support facilities, while five new automated test stations (ATS) will be set up at the Delhi Transport Corporation (DTC) station at a cost of Rs 0.5 billion crore.

This electric vehicle push is part of a larger transportation and connectivity plan: The Electric Vehicle Policy 2.0 also proposes to integrate direct benefit transfer (DBT) with electronic authentication (e-KYC) based on Adalka (Aadhaar), aiming to reduce the payment approval timeline from more than 40 days to less than one week.