In a significant move aimed at furthering green mobility in the capital, the Delhi government has decided to extend its Electric Vehicle (EV) Policy for an additional three months. The extension, announced on April 16, 2025, is a bid to keep the city’s EV push on track while also addressing public concerns around potential vehicle bans, particularly regarding auto-rickshaws. The extension ensures that the existing EV policy will remain in place until the EV Policy 2.0 is rolled out, with the new policy expected to address a wider range of electric vehicle categories.

At a Cabinet meeting chaired by Chief Minister Rekha Gupta, the extension was confirmed. Transport Minister Pankaj Singh clarified that contrary to circulating rumors, there is no plan to ban auto-rickshaws or any category of vehicles under the new policy. This statement was aimed at countering growing concerns among drivers and commuters who feared potential restrictions under the EV policy. Minister Singh assured the public that the existing policy would continue for the next three to four months, giving time for the transition to the new guidelines.

Power Subsidies Extended for Key Consumer Groups

In addition to the EV policy extension, the Delhi government has also approved the continuation of electricity subsidies for key consumer groups, ensuring uninterrupted support for those who rely on this assistance. The four groups that will benefit from the extended power subsidies are:

1. Domestic households – to help ease the financial burden of electricity costs.

2. Farmers – to support agricultural activities and irrigation needs.

3. Lawyers with chambers – ensuring the continuity of subsidies for legal professionals.

4. Victims of the 1984 anti-Sikh riots – to offer ongoing support for those impacted by the tragic events.

Delhi Home Minister Ashish Sood confirmed that there would be no discontinuation of these subsidies, providing reassurance that the power subsidy program would continue seamlessly. This move is aimed at supporting the city's most vulnerable groups while also aligning with the broader objectives of the EV policy.

About the EV Policy and Its Upcoming Expansion

Launched in August 2020 by the then AAP-led government, the EV policy was designed to reduce vehicular pollution and achieve the goal of having 25% of new vehicle registrations in Delhi be electric by 2024. Although the policy officially ended in August 2023, it has been extended multiple times by both AAP and the current BJP-led administration.

The EV Policy 2.0, which is being worked on, is expected to significantly expand the city’s EV footprint and will cover a broader range of vehicle categories. This includes the introduction of electric two-wheelers, buses, goods carriers, and three-wheelers. Additionally, the new policy is set to create substantial employment opportunities, with projections indicating the creation of up to 20,000 jobs through the growth of the EV ecosystem.

Key Highlights of the EV Policy 2.0

The draft of EV Policy 2.0 includes several key highlights aimed at further boosting the adoption of electric vehicles in Delhi, such as:

• A subsidy of up to Rs 36,000 for women purchasing electric two-wheelers.

• Incentives of Rs 10,000 per kWh (up to Rs 30,000 per vehicle) for electric two-wheelers.

• Creation of up to 20,000 jobs through the expansion of the EV ecosystem.

• A city-wide EV infrastructure that includes battery swapping stations and charging stations.

• The establishment of battery collection centres to promote responsible recycling of EV batteries.

The EV Policy 2.0 is expected to be formally notified once it receives Cabinet approval. The overarching goal of the EV Policy is to reduce air pollution in Delhi by rapidly replacing fossil fuel-powered vehicles with cleaner and more sustainable electric alternatives.

What It Means for You

The extension of the EV Policy and the continuation of subsidies mean that Delhi’s green mobility objectives will stay on track in the coming months. Residents, including households, farmers, lawyers, and victims of the 1984 riots, can continue to avail themselves of electricity subsidies without disruption. The electric vehicle ecosystem will continue to develop, with more opportunities for subsidies and incentives available for those interested in switching to electric vehicles.

Additionally, the development of EV infrastructure and battery swapping stations is expected to provide a more accessible and convenient experience for EV owners. With EV Policy 2.0 expanding the types of electric vehicles supported, Delhi is positioning itself to become a leader in green transportation, contributing significantly to environmental sustainability.

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