The Delhi Cabinet approved a new Electric Vehicle (EV) Policy featuring a Rs 15,000 crore [1] investment to accelerate the city's transition to green mobility.
This policy represents a significant effort to curb severe air pollution in the National Capital Territory of Delhi. By mandating the shift to electric transportation, the city aims to reduce the reliance on fossil fuels and lower the volume of toxic emissions in the atmosphere.
Chaired by Chief Minister Rekha Gupta, the cabinet finalized the plan on Monday. The policy is set to take effect on July 1, 2026 [3]. Under the new guidelines, electric cars priced up to Rs 30 lakh [2] will be eligible for tax exemptions to encourage wider adoption among private buyers.
The government will also implement a phased ban on internal combustion engine vehicles. Starting in 2027, only electric auto-rickshaws will be permitted to operate [4]. This transition will extend to two-wheelers, with a mandate for electric versions beginning in 2028 [5].
To support this transition, the policy includes subsidies for electric three-wheelers, and incentives for scrapping older, polluting vehicles. These measures are designed to make the switch financially viable for commercial drivers who rely on these vehicles for their livelihoods.
Officials said the investment will be used to expand the city's charging infrastructure and provide the necessary financial push to meet sustainability targets. The comprehensive approach combines financial incentives for the wealthy and subsidies for the working class to ensure an equitable shift toward cleaner air.
“The Delhi Cabinet approved a new Electric Vehicle (EV) Policy featuring a Rs 15,000 crore investment.”
By combining aggressive deadlines for commercial vehicle replacement with high-value tax breaks for private cars, Delhi is attempting to create a mandatory ecosystem for electric mobility. The phased ban on petrol and CNG autos by 2027 forces a rapid modernization of the city's public transport backbone, while the Rs 15,000 crore investment suggests a focus on overcoming the infrastructure gap that has historically hindered EV adoption in India.
