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100% road tax waiver for electric cars, new rules for 2, 3 and 4 wheelers – what Delhi govt’s draft EV policy says

by India News Online Team
April 11, 2026
in India
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100% road tax waiver for electric cars, new rules for 2, 3 and 4 wheelers – what Delhi govt’s draft EV policy says
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100% road tax waiver for electric cars, new rules for 2, 3 and 4 wheelers - what Delhi govt's draft EV policy says

The Delhi government has unveiled the draft Electric Vehicle (EV) Policy 2026–2030, outlining a roadmap to curb air pollution and promote clean mobility in the national capital. With vehicular emissions contributing nearly 23% of the city’s pollution, the policy focuses on accelerating the shift to electric vehicles while strengthening the ecosystem needed to support their widespread adoption.The new draft builds on the earlier EV policy introduced in August 2020, which had a three-year term ending in August 2023 and has since been extended. Officials say the updated framework seeks to expand on previous efforts to curb vehicular pollution and accelerate the transition to cleaner transport. The draft offers incentives like a 100% road tax waiver for electric cars, along with benefits and updated rules for two-, three-, and four-wheelers. It also aims to expand charging infrastructure, build a stronger EV ecosystem, and encourage a gradual move away from petrol and diesel vehicles. Focused on cutting emissions, which make up about 23% of Delhi’s pollution, the policy is linked to the Right to Clean Air under Article 21, highlighting a stronger push to improve air quality in the capital.

Here’s what Delhi government’s new EV draft policy has proposed:

  1. Full tax exemption for affordable EV carsElectric cars priced up to Rs 30 lakh will get 100% exemption on road tax and registration fees till March 31, 2030. The policy states, “Electric cars with ex-showroom price above (Rs) 30 lakh registered in Delhi shall not be granted any exemption from road tax and registration fees.” However, vehicles priced above this threshold will not be eligible for such benefits. The draft also proposes a 50% exemption for strong hybrid vehicles.
  2. What’s new for 2 wheelers?

    The government has also listed out intensives for two wheelers. To be eligible for incentives, the ex-factory price of an electric two-wheeler must not exceed Rs 2.25 lakh.
    In the first year from the date of notification, buyers will receive Rs 10,000 per kWh, capped at Rs 30,000. This incentive reduces to Rs 6,600 per kWh (up to Rs 20,000) in the second year, and further to Rs 3,300 per kWh (up to Rs 10,000) in the third year.

  3. Push for electric three-wheelers

    From January 1, 2027, only electric three-wheelers will be allowed for new registrations in Delhi. Furthermore, the Government of National Capital Territory of Delhi (GNCTD) is also set to provide the following incentives to encourage the adoption of electric-rickshaws in the national capital:

    Year of RegistrationIncentive
    Year 1 (from date of notification)Rs 50,000
    Year 2 (from date of notification)Rs 40,000
    Year 3 (from date of notification)Rs 30,000
  4. Slow transition to electric vehicles

    The draft has proposed phased electrification of school bus fleets. This applies to all school buses, owned, leased, or hired.

    10% electric within 2 years
    20% within 3 years
    30% by March 31, 2030

    Furthermore, it also mandates electrification of government fleets. All hired or leased vehicles under the Delhi government will be only electric from the date of notification, except exempted categories. New buses inducted by the Transport Department and DTC will also be electric, with provisions for cleaner alternatives like hydrogen if introduced.

    Additionally, all new N1 category trucks procured by government bodies and civic agencies will be only electric. Here’s the incentive structure, based on the year of registration:

    Year of RegistrationIncentive
    Year 1 (from date of notification)Rs 1,00,000
    Year 2 (from date of notification)Rs 75,000
    Year 3 (from date of notification)Rs 50,000
  5. Restrictions on conventional fleet operators

    Fleet aggregators and delivery service providers will not be allowed to induct new petrol or diesel vehicles after notified timelines, with limited exceptions for certain categories till December 2026.
  6. Expansion of EV charging and swapping infrastructure

    Land-owning agencies will identify sites for public charging and battery swapping stations All new buildings and infrastructure projects must be EV charging-ready Delhi Transco Limited will handle planning, deployment, and reliability of charging networks
  7. Battery waste management and recycling push

    Strict compliance with Battery Waste Management Rules and Extended Producer Responsibility (EPR) Establishment of battery collection centres across Delhi through partnerships.
  8. Creation of a dedicated EV Fund

    A separate EV Fund will be set up under the Transport Department to finance implementation, supported by budget allocations, grants, cess, and other sources. Furthermore, a committee led by the Transport Minister will oversee implementation of the policy and management of the EV Fund. Transport Department to act as nodal agency Environment Department to track emission reductions Urban bodies to support infrastructure rollout Education Department to ensure compliance and run awareness campaigns.
  9. Fully digital implementation system

    All processes including approvals, applications, disbursements, and grievance redressal will be conducted in a paperless digital format.
  10. Public feedback

    The government has also invited public feedback for the proposed reforms. In an official circular, the government said, “The draft Delhi Electric Vehicle (EV) Policy 2026 is hereby uploaded on the official website of Transport Department, GNCTD for the information of general public. All stakeholders including general public are invited to submit their feedback/comments within 30 days from the date of publication through the following modes: 1. By e-mail: evpolicy2026@gmail.com 2. By Post: Joint Commissioner (EV), Transport Department, Govt. of NCT of Delhi, 5/9 Underhill Road, Delhi- 110054.”

It further clarified, “All inputs/representations may kindly be submitted only through the above- mentioned modes. In this regard, the public is humbly requested to avoid visiting the office premises, as the same may cause unnecessary crowding. No objections or suggestions received after the expiry of the said period shall be considered.”Earlier this year, on March 20, CM Rekha Gupta flagged off 300 new electric buses and announced the launch of interstate bus services connecting Delhi with Ghaziabad. A foundation stone was also laid for a new Delhi Transport Corporation office near the IP depot.Meanwhile, health minister Pankaj Kumar Singh had noted the pace of adoption, stating, “After our government came to power, we registered more than 1 lakh EV vehicles. There are many reasons why EVs are not advancing further. The previous government did not provide subsidies for EVs. We are providing those subsidies, but if the previous government had given subsidies, perhaps the people of Delhi would have made more efforts to adopt EVs.“



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