The Delhi Government recently approved a three-month extension of its Electric Vehicle (EV) Policy, along with the continuation of the power subsidy in the national capital, according to officials. Until the implementation of the new EV Policy 2.0, the existing policy will remain in effect.

A Cabinet meeting, chaired by Chief Minister Rekha Gupta, also approved the continuation of the existing power subsidy for four categories: domestic consumers, farmers, lawyers with chambers, and victims of the 1984 anti-Sikh riots.

At a press conference held at the secretariat, Transport Minister Pankaj Singh clarified that there would be no ban on auto-rickshaws or any other category of vehicles.

In a statement to media sources, Singh remarked that the Government intends to introduce several initiatives for the benefit of residents, and these would be incorporated into the revised EV Policy.

He emphasised that no ban on auto-rickshaws is under consideration, nor is there any proposal to restrict any category of vehicles. The current EV Policy is expected to remain in effect for approximately the next three to four months.

During the same press conference, Delhi Home Minister Ashish Sood refuted claims regarding the discontinuation of the electricity subsidy. He stated that the Cabinet had approved a special proposal to extend subsidies benefiting farmers and lawyers, while also ensuring continued support for riot victims.

The EV Policy has been extended multiple times under both the previous AAP administration and the current Government led by the BJP.

Originally launched in August 2020 as a flagship initiative of the previous AAP Government, the policy aimed to address vehicular pollution and promote the adoption of electric vehicles, targeting a 25% share by 2024.

Although the initial three-year term concluded in August 2023, the Government decided to extend the policy.

According to the draft of EV Policy 2.0, its primary objective is to promote the adoption of electric vehicles as a means of reducing pollution. The policy proposes coverage of mass vehicle categories, including two-wheelers, buses, three-wheelers, and goods carriers, with the goal of transitioning them to electric power.

The draft also includes a series of incentives designed to accelerate EV adoption. Women riders may be eligible for a subsidy of up to Rs. 36,000 (US$ 420) on the purchase of an electric two-wheeler.

Additionally, to promote the use of electric two-wheelers, the Government may offer a purchase incentive of Rs. 10,000 per kilowatt-hour, capped at Rs. 30,000 per vehicle.

The policy further aims to create up to 20,000 jobs during its implementation period and to facilitate the establishment of battery collection centres, along with a city-wide network of charging and swappable battery stations.

Once it receives Cabinet approval, the policy will be formally notified. It seeks to improve Delhi's air quality by accelerating the replacement of a significant number of fossil fuel-powered vehicles.