Delhi Government Plans EV Incentive Scheme For Scrapping Old Vehicles

The Delhi government is planning to introduce a new incentive scheme aimed at accelerating electric vehicle adoption in the capital. The proposed policy will offer cash incentives to vehicle owners who scrap their old vehicles and replace them with electric vehicles (EVs). Under the proposed scheme, owners of Delhi-registered BS4 or older vehicles who scrap their vehicles at authorised scrapping centres will be eligible to receive financial incentives. However, to qualify for the benefit, the owner must purchase a new electric vehicle within six months of receiving the certificate of deposit issued after scrapping the old vehicle. The incentives will vary depending on the type of EV purchased. Buyers who opt for an electric two-wheeler will receive an incentive of ₹10,000, while those purchasing an electric three-wheeler will be eligible for ₹25,000. The scheme also includes incentives for electric car buyers. Consumers purchasing an electric car priced up to ₹15 lakh (ex-factory) will be eligible for a ₹1 lakh incentive. However, this benefit will be limited to the first one lakh applicants under the scheme. In addition to the direct incentives, the Delhi government is also planning to extend the exemption on road tax and registration fees for EVs. The exemption will apply to electric vehicles priced up to ₹30 lakh (ex-factory) and is expected to remain in effect until March 31, 2030. The move is expected to encourage more people to shift from older polluting vehicles to cleaner electric mobility, supporting Delhi’s broader efforts to reduce emissions and improve air quality.