The Delhi government is poised to roll out its much-anticipated Electric Vehicle (EV) Policy 2.0, offering major incentives aimed at transforming the city’s transportation landscape and accelerating the adoption of electric mobility. One of the key highlights of this revamped policy is the introduction of a purchase subsidy for women who buy electric two-wheelers. Under the proposed scheme, women with valid driving licenses will be eligible for a subsidy of Rs 12,000 per kWh of battery capacity, capped at Rs 36,000 for the first 10,000 women. This initiative seeks to boost female participation in the electric vehicle transition, which aligns with the Delhi government's broader strategy to promote sustainable mobility. The policy is expected to stay in effect until March 31, 2030, and complements the Centre's PM E-DRIVE scheme.

In addition to these subsidies, the policy also targets the wider adoption of electric two- and three-wheelers. For electric two-wheelers, the policy proposes an incentive of Rs 10,000 per kWh (up to Rs 30,000) for residents of Delhi, with an additional Rs 10,000 for those scrapping petrol or diesel two-wheelers under 12 years old. In a bid to replace CNG auto-rickshaws with e-autos, the policy introduces a subsidy of Rs 45,000 based on battery capacity for new electric auto-rickshaws (L5M category). Moreover, a scrapping incentive of Rs 20,000 will be offered to owners of older internal combustion engine (ICE) auto-rickshaws.

One of the most crucial elements of the policy is its aggressive phaseout plan for petrol, diesel, and CNG vehicles. Starting from August 15, 2024, no new CNG auto-rickshaws will be allowed registration, and existing CNG auto permits will not be renewed. Furthermore, fossil fuel-driven two-wheelers will be banned from August 15, 2026, while the registration of diesel, petrol, and CNG goods carrier three-wheelers will cease by August 15, 2025. The Delhi government aims to phase out fossil fuel-based public transport, including buses and waste carriers, which are primarily operated by civic agencies.

The policy also includes significant support for commercial EVs, with electric three-wheeler goods carriers (L5N category) eligible for incentives up to Rs 45,000, and electric four-wheeler carriers (N1 category) potentially receiving subsidies up to Rs 75,000. These benefits will be available for individual and commercial applicants for the first three years, subject to price caps of Rs 4.5 lakh for L5N vehicles and Rs 12.5 lakh for N1 vehicles.

The Delhi government is also aiming to create up to 20,000 new jobs in the EV sector, fostering a cleaner and more sustainable economy. This will be supported by the creation of a city-wide charging and battery-swapping network, battery collection centers for enhanced recycling, and skill development centers in partnership with educational institutions. A strong public awareness campaign will complement these efforts, helping citizens understand the benefits of EV adoption and encouraging participation in the transition.

An ambitious target has been set for the capital, with the government aiming for 95% of all new vehicle registrations to be electric by 2027. By 2030, the city also plans to ensure 100% availability of EV recharging infrastructure across Delhi. To oversee this transition, a dedicated Delhi Clean Mobility Center will be established, and a strengthened State EV Fund will draw from various funding sources, including the Air Ambience Fund and levies on non-electric vehicles.

The EV Policy 2.0 is seen as a bold move toward curbing air pollution, reducing dependency on fossil fuels, and promoting cleaner mobility options in a rapidly urbanizing capital. Once cleared by the Delhi Cabinet, the policy will replace the expired version of the EV policy, which has been temporarily extended for 15 days to allow for this update.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.