Electric car and two-wheeler buyers in Delhi may benefit from lower prices, with the state government proposing to subsidise purchases of these eco-friendly vehicles in an effort to curb air pollution, people familiar with the matter said.
The proposals are contained in the government’s draft electric vehicle (EV) policy, which will be issued for public consultation in the next fortnight, the people said.
“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.
These sops will supplement existing incentives for EVs offered by the Union heavy industries ministry, which subsidises electric buses, trucks, and two- and three-wheelers.
“Under the forthcoming policy, the government’s primary focus will be on financial incentives,” Delhi chief minister Rekha Gupta said last week. “To reduce the significant price difference between petrol-diesel (ICE) vehicles and electric vehicles, adequate subsidies will be provided.”
She said a plan is being prepared to encourage scrapping of older vehicles. “A scrapping incentive scheme is being introduced to remove highly polluting vehicles from the roads,” Gupta said, adding that those scrapping older petrol or diesel vehicles will get additional financial benefits when buying a new EV.
Delhi’s last EV policy was issued in 2020 and is currently operational under extensions. It offered per-kilowatt incentives for two-wheelers and fixed subsidies for three-wheelers. The state also subsidised electric cars for a limited period. Gupta indicated exemptions on road tax and registration fees for EVs would continue under the forthcoming policy.
Air quality in the national capital has reflected high levels of dust and particulate matter for most of December, prompting the state government to announce restrictions on older petrol and diesel vehicles from plying in Delhi.
Petrol pumps have also been instructed to ensure that vehicle owners have valid pollution under control (PUC) certificates before dispensing fuel.
