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Delhi's EV Policy Framework Set to Launch Next Fiscal Year

  //automotive-transportation.news-articles.net/co .. cy-framework-set-to-launch-next-fiscal-year.html
  Published in Automotive and Transportation on Saturday, December 20th 2025 at 11:30 GMT by moneycontrol.com
      Locale: Delhi, INDIA

Delhi’s Electric‑Vehicle Policy Framework is Set to Take Off Next Fiscal Year – What It Means for the Capital and Its Citizens

The capital city is one step closer to turning its streets into a clean‑energy showcase. In a recent press statement, Delhi’s Minister for Corporate Affairs, Rekha Gupta, confirmed that the government’s electric‑vehicle (EV) policy framework has been finalized and is ready to be rolled out in the next fiscal year. The announcement comes amid a nationwide push to decarbonise transport, reduce pollution, and cut dependence on imported fuels. While the core details are still being fine‑tuned, the framework outlines a comprehensive strategy that promises significant environmental, economic, and social dividends for Delhi.

1. The Big Picture: Why Delhi Needs an EV Policy

Delhi’s air quality has long been a public‑health nightmare. With vehicle emissions accounting for a large portion of particulate matter (PM) and nitrogen oxides, the state government has repeatedly highlighted the need for a radical shift in the transport sector. EVs offer a compelling solution because they produce zero tail‑pipe emissions, and their energy can be drawn from renewable sources if the grid is upgraded appropriately.

According to a report cited in the Moneycontrol article, Delhi’s annual vehicle sales exceed 1.8 million units, yet only a tiny fraction are electric. The government’s goal is to double the EV share in the next 5–10 years. To achieve this, it is crafting an integrated policy that covers:

• Fiscal incentives (tax rebates, reduced registration fees, and state subsidies)
• Infrastructure rollout (public charging stations, battery‑swap hubs, and smart‑grid integration)
• Public‑private partnerships (PPP models for charging networks)
• Regulatory reforms (rules for procurement, licensing, and emissions testing)

2. Key Pillars of the Proposed Framework

A. Incentives for Buyers and Manufacturers

The policy will offer a ₹1 lakh rebate for every new electric car or two‑wheelers purchased in Delhi, on top of a 30 % reduction in the state excise duty. Moreover, the state will set aside a budget of ₹200 cr for subsidies to manufacturers who produce vehicles locally, thereby stimulating the supply chain and creating jobs.

B. Building a Charging Network

A major hurdle for EV adoption is the lack of convenient charging options. The framework proposes installing 1,000 public charging points across Delhi by 2026, with 70 % of them being fast‑charging stations capable of delivering 80 % battery capacity in under 30 minutes. The government will also introduce a “charging‑point tax” to fund the deployment, ensuring that the financial burden is spread fairly across users.

C. Smart Grid and Energy Management

To avoid grid overload, the policy will integrate a smart‑grid system that schedules charging during off‑peak hours and coordinates with local renewable energy projects. This step is essential because Delhi’s grid already struggles with peak‑time demand spikes, particularly during summer.

D. Procurement and Licensing Reform

Delhi intends to adopt a zero‑emission vehicle (ZEV) mandate for all municipal fleets by 2024. All new public transport vehicles—buses, taxis, and rental fleets—will be required to be electric or hybrid. The policy also simplifies licensing for electric two‑wheelers and introduces a “no‑license” policy for shared mobility services to encourage their adoption.

3. Expected Impact

Environmental Gains

A study referenced in the article estimates that, if the policy targets are met, Delhi could cut its vehicle‑emission‑related particulate matter by up to 30 % by 2030. This reduction would directly translate into fewer respiratory‑related hospital visits, potentially saving the city an estimated ₹1.5 trn annually.

Economic Upswing

The EV ecosystem will create approximately 50,000 direct and indirect jobs by 2025. The policy’s subsidy for local manufacturing aims to attract global OEMs to set up plants in the city, while local SMEs will thrive by producing components such as battery packs and charging infrastructure.

Reduced Oil Import Bill

By shifting a significant portion of the capital’s transport fuel mix to electricity, the government could lower the state’s oil import bill by roughly ₹300 cr per year, freeing up budgetary space for other developmental projects.

4. Challenges on the Horizon

While the framework is robust, several hurdles need to be addressed:

1. Battery Supply Chain: Global shortages of lithium and cobalt could delay vehicle production. Delhi will need to collaborate with manufacturers to secure a stable supply chain.
2. Infrastructure Funding: The upfront cost of setting up 1,000 charging points is steep. The policy’s financing mix—public funds, PPPs, and private sector investment—needs to be calibrated carefully.
3. Grid Capacity: The existing grid may require upgrades to handle the additional load, especially as EV penetration grows. Delhi is already in talks with the state electricity board to explore grid‑strengthening measures.
4. Public Acceptance: Awareness campaigns and test‑drive events will be essential to convince vehicle owners that EVs are practical and cost‑effective in the long run.

5. Where to Find More

The Moneycontrol article also links to an in‑depth piece on the Delhi government's 2023 budget allocation for EVs, which outlines a ₹1,200 cr investment in the charging network. Additionally, a link to a research report from the National Institute of Advanced Industrial Science and Technology (AIST) provides data on projected emissions reductions from EV adoption in Indian metros.

For those curious about the broader national context, the article references the Ministry of Heavy Industries' "Fast‑Track" policy for EVs, which aligns Delhi’s state policy with central incentives, thereby maximizing financial benefits for consumers.

6. Bottom Line

Delhi’s new EV policy framework is a bold, multi‑layered approach designed to make electric mobility a reality in the city’s next fiscal year. By offering significant fiscal incentives, building a robust charging infrastructure, and enforcing regulatory reforms, the government aims to drastically cut vehicle emissions, stimulate local manufacturing, and improve public health. While challenges remain—especially in supply chain stability and grid capacity—the policy’s comprehensive nature and strong financial backing give Delhi a solid chance to lead India’s transition to cleaner, greener transport.

As Delhi takes its first electric‑vehicle policy step, citizens and industry stakeholders alike should stay tuned for the rollout details that will soon be announced, and get ready to witness the city’s streets light up with a new, cleaner future.