<p>The recent <a href="https://www.deccanherald.com/india/delhi/only-ev-3-wheelers-registrations-incentives-what-to-know-of-delhi-govts-ev-policy-as-it-pushes-for-cleaner-air-3968862">draft EV Policy released</a> by the Delhi government adds a proverbial dose of ghee to the already raging discourse about one of the most hotly contested policy debates of our times: The future of mobility in India, especially in the context of the current energy crisis, and our ever-increasing consumption of resources.</p><p>The National Capital’s <a href="https://transport.delhi.gov.in/transport/delhi-ev-policy">new draft EV policy</a> for the period 2026-2030 was put in the public domain over the last weekend for comments and feedback from stakeholders. It proposes that registration of new internal combustion engine (ICE) three-wheelers and two-wheelers be stopped from 2027 and 2028, respectively, and mandates that all schools should have 30% of their bus fleets as EVs by 2030.</p><p>It also provides financial incentives for electric lorries and trucks, regulatory measures to discourage fleet aggregators and delivery services from adding more ICE trucks, and mandates that government agencies should only procure electric lorries. These are all commendable proposals, targeting two specific segments (buses and trucks), where the use of diesel is still high. As for the third category, the policy recognises that two-wheelers constitute approximately 67% of the total vehicle stock in Delhi, making their rapid electrification critical for achieving meaningful reductions in vehicular emissions.</p><p>However, some of the most interesting proposals are for cars. The draft EV policy provides 100% road tax and registration fee waiver for EV cars under Rs 30 lakh, and a 50% waiver for the same for ‘strong’ hybrid cars till 2030. It has also scrapped purchase incentives on new EV cars. The existing outgoing EV policy provides purchase incentives up to Rs 1.5 lakh for EV cars, and a 100% road tax waiver, irrespective of price point.</p><p>The new draft also requires carmakers to install at least one charging station per dealer.</p><p>How would Delhi’s draft policy compare to other states? The likes of Chandigarh and Tripura offer cash subsidies as well as road tax waivers to varying degrees, while Uttar Pradesh, Rajasthan, Haryana, and Chhattisgarh also provide similar benefits to hybrids. UP has a 100% road tax waiver and cash subsidy of up to Rs 1 lakh or 15% of the factory price. Haryana has a 25% road tax waiver and a cash subsidy of up to Rs 3 lakh.</p><p>The most EV-friendly policy is likely that of Meghalaya, which has a 100% road tax waiver and cash subsidy of Rs 4,000/kilowatt hour. Then there is Karnataka, which had all EVs exempt from road tax. However, that was amended to now impose a lifetime tax of 10% on all EVs above Rs 25 lakh.</p><p>So, what does the draft Delhi EV policy tell us about the state government’s thought process? First, the rich and the elite should not be receiving subsidies or exemptions. It is good that any benefits for EVs above Rs 30 lakh are being removed (By the same metric, the Karnataka government should also be commended).</p><p>A basic calculation shows that EV subsidies and cash benefits from the Centre and state governments combined can enable a customer to make up the purchase price of the vehicle. And let’s keep in mind that there is no EV or hybrid car available for an on-road price of below Rs 10 lakh. It is a travesty that in their efforts to push electric mobility, governments have provided upper-middle-class buyers with bigger subsidies than farmers and the rural and urban poor.</p><p>Second, is the recognition of hybrids. Yes, India’s mobility is headed towards an electric future, but there are still implementation gaps. The electric charging network is still not as widespread as petrol pumps, and EVs are not for the middle and aspirational classes. An overwhelming majority of India’s middle-class families would not want to exceed a budget of Rs 6-10 lakh while buying a car. It is imperative that while the thrust on EV cars continues, alternative energy systems like hybrids, CNG, biofuels, and ethanol should also be encouraged. If not, then cars will be priced out of the budgets of many consumers. Additionally, the EV thrust is counterproductive if these cars continue to be charged from a network that is 50% coal-powered (up to 70% during peak summer demand).</p><p>One also needs to talk about the carmakers. The likes of Hyundai, Maruti Suzuki, Tata Motors, and Mahindra, among others, have done a great disservice to the Indian economy, environment, and society, by not providing EVs and strong hybrids in the Rs 6-8 lakh range. All these profits and none of them seem to be investing seriously into R&D for budget EVs and hybrids.</p><p>Overall, the draft Delhi EV policy is a good, realistic step. It considers the interests of customers across price points, and not just rich EV buyers. It seems to have adopted best practices from other states’ EV policies. It is not a blind rush to electrify everything, and that is a good thing.</p><p><em>Arup Roychoudhury is a journalist and public policy advocate. X: @aruproytweets.</em></p><p>Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.</p>
<p>The recent <a href="https://www.deccanherald.com/india/delhi/only-ev-3-wheelers-registrations-incentives-what-to-know-of-delhi-govts-ev-policy-as-it-pushes-for-cleaner-air-3968862">draft EV Policy released</a> by the Delhi government adds a proverbial dose of ghee to the already raging discourse about one of the most hotly contested policy debates of our times: The future of mobility in India, especially in the context of the current energy crisis, and our ever-increasing consumption of resources.</p><p>The National Capital’s <a href="https://transport.delhi.gov.in/transport/delhi-ev-policy">new draft EV policy</a> for the period 2026-2030 was put in the public domain over the last weekend for comments and feedback from stakeholders. It proposes that registration of new internal combustion engine (ICE) three-wheelers and two-wheelers be stopped from 2027 and 2028, respectively, and mandates that all schools should have 30% of their bus fleets as EVs by 2030.</p><p>It also provides financial incentives for electric lorries and trucks, regulatory measures to discourage fleet aggregators and delivery services from adding more ICE trucks, and mandates that government agencies should only procure electric lorries. These are all commendable proposals, targeting two specific segments (buses and trucks), where the use of diesel is still high. As for the third category, the policy recognises that two-wheelers constitute approximately 67% of the total vehicle stock in Delhi, making their rapid electrification critical for achieving meaningful reductions in vehicular emissions.</p><p>However, some of the most interesting proposals are for cars. The draft EV policy provides 100% road tax and registration fee waiver for EV cars under Rs 30 lakh, and a 50% waiver for the same for ‘strong’ hybrid cars till 2030. It has also scrapped purchase incentives on new EV cars. The existing outgoing EV policy provides purchase incentives up to Rs 1.5 lakh for EV cars, and a 100% road tax waiver, irrespective of price point.</p><p>The new draft also requires carmakers to install at least one charging station per dealer.</p><p>How would Delhi’s draft policy compare to other states? The likes of Chandigarh and Tripura offer cash subsidies as well as road tax waivers to varying degrees, while Uttar Pradesh, Rajasthan, Haryana, and Chhattisgarh also provide similar benefits to hybrids. UP has a 100% road tax waiver and cash subsidy of up to Rs 1 lakh or 15% of the factory price. Haryana has a 25% road tax waiver and a cash subsidy of up to Rs 3 lakh.</p><p>The most EV-friendly policy is likely that of Meghalaya, which has a 100% road tax waiver and cash subsidy of Rs 4,000/kilowatt hour. Then there is Karnataka, which had all EVs exempt from road tax. However, that was amended to now impose a lifetime tax of 10% on all EVs above Rs 25 lakh.</p><p>So, what does the draft Delhi EV policy tell us about the state government’s thought process? First, the rich and the elite should not be receiving subsidies or exemptions. It is good that any benefits for EVs above Rs 30 lakh are being removed (By the same metric, the Karnataka government should also be commended).</p><p>A basic calculation shows that EV subsidies and cash benefits from the Centre and state governments combined can enable a customer to make up the purchase price of the vehicle. And let’s keep in mind that there is no EV or hybrid car available for an on-road price of below Rs 10 lakh. It is a travesty that in their efforts to push electric mobility, governments have provided upper-middle-class buyers with bigger subsidies than farmers and the rural and urban poor.</p><p>Second, is the recognition of hybrids. Yes, India’s mobility is headed towards an electric future, but there are still implementation gaps. The electric charging network is still not as widespread as petrol pumps, and EVs are not for the middle and aspirational classes. An overwhelming majority of India’s middle-class families would not want to exceed a budget of Rs 6-10 lakh while buying a car. It is imperative that while the thrust on EV cars continues, alternative energy systems like hybrids, CNG, biofuels, and ethanol should also be encouraged. If not, then cars will be priced out of the budgets of many consumers. Additionally, the EV thrust is counterproductive if these cars continue to be charged from a network that is 50% coal-powered (up to 70% during peak summer demand).</p><p>One also needs to talk about the carmakers. The likes of Hyundai, Maruti Suzuki, Tata Motors, and Mahindra, among others, have done a great disservice to the Indian economy, environment, and society, by not providing EVs and strong hybrids in the Rs 6-8 lakh range. All these profits and none of them seem to be investing seriously into R&D for budget EVs and hybrids.</p><p>Overall, the draft Delhi EV policy is a good, realistic step. It considers the interests of customers across price points, and not just rich EV buyers. It seems to have adopted best practices from other states’ EV policies. It is not a blind rush to electrify everything, and that is a good thing.</p><p><em>Arup Roychoudhury is a journalist and public policy advocate. X: @aruproytweets.</em></p><p>Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.</p>
