Delhi govt extends EV policy till March 2025; revives subsidies, tax exemptions

New Delhi: Chief Minister Atishi announced on Thursday that the Delhi Electric Vehicle Policy has been extended till March 31 next year with subsidies and road tax exemptions reinstated for vehicles purchased on or after January 1, 2024.

At a press conference, she claimed the move is part of her government's effort to tackle the city's severe air pollution and encourage the adoption of clean transportation.

The chief minister noted that electric vehicle registrations in Delhi have risen from 4 per cent in 2019-20 to 12 per cent now, the highest in the country.

She alleged that in Arvind Kejriwal's absence, key public services, including pensions, infrastructure projects, and electric vehicle subsidies were halted.

Atishi said that under Kejriwal's guidance, all stalled projects, including the electric vehicle policy have been revived with urgency.

"The Delhi Cabinet has approved the transfer of subsidies directly into buyers' accounts for EVs purchased after January 1, 2024," she said.

The Delhi EV policy offers a range of incentives, including a 25 per cent purchase subsidy (up to Rs 5,500) for e-cycles, Rs 30,000 for e-rickshaws and e-carts, Rs 5,000 per kWh of battery capacity (capped at Rs 30,000) for two-wheelers, and Rs 30,000 for e-light commercial vehicles.

Also, a purchase incentive of Rs 10,000 per kWh of battery capacity for the first 1000 cars up to Rs 1.5 lakh. However, Delhi crossed the 1000-car mark in August 2021 and incentives on e-cars are subject to further notification from the Delhi government.

Atishi highlighted that the EV policy aligns with other transformative measures introduced by the AAP government, such as 24-hour electricity supply, quality education in public schools, mohalla clinics, and doorstep delivery of services.

The chief minister reiterated the government remains committed to combating air pollution and fostering sustainable urban transport through progressive policies.

"The policy has also been extended until March 31, 2025. I urge all Delhi residents to purchase electric vehicles in large numbers so that we can fight pollution effectively. The Delhi government is committed to this war against pollution and the electric vehicle policy is a vital part of this effort," she said.

AAP supremo and former chief minister Arvind Kejriwal welcomed the decision.

"Congratulations to the people of Delhi. Our electric vehicle policy is back. Subsidies will now go directly to buyers' accounts. These people tried to stop it, but we have restarted it," he said in a post on X.

In order to increase the percentage of electric vehicles in Delhi to 25 per cent by 2024, the EV policy was announced in August 2020. The policy was first introduced for a three-year period, but it has been extended multiple times in the absence of a new one. The Delhi Electric Vehicle Policy 2.0 is being formulated.