Scrappage incentive of up to Rs. 1 lakh offered for BSIV four-wheelers
New policy comes into force from 1 July, 2026
Delhi's perennial pollution problem has just found another counterpunch. The state cabinet has given its nod to the 2026 EV Policy, a move aimed squarely at cutting down the city's vehicular emissions.
Chief Minister Rekha Gupta confirmed the development, crediting backing from the central government and what she described as productive discussions with the various stakeholders involved.
Once the Lieutenant Governor gives the final signage, the policy will kick in from July 01, 2026, and stay in force until 31 March, 2030, giving it a runway of nearly four years to make a measurable dent in air quality.
Big Money, Bigger Ambitions
The numbers behind this policy are hard to ignore. It is expected to draw investments of roughly Rs. 7,000 crore over its lifetime, while EV-related tax exemptions are pegged to touch around Rs. 15,000 crore. That is a serious financial commitment, and it signals that Delhi is not treating this as a token gesture.
What Buyers Actually Stand to Gain
For the everyday car buyer, the real story lies in the incentives. Anyone trading in an old BSIV two-wheeler for an electric one stands to gain a scrappage incentive of Rs. 10,000. Four-wheeler owners get an even sweeter deal, with incentives running up to Rs. 1 lakh for scrapping a BSIV car. Crucially, this amount stacks on top of the existing state EV subsidy, which should translate into a noticeably lower on-road price.
There is a ceiling, though. The benefit only applies to electric cars priced under Rs. 30 lakh (ex-showroom). That still covers a fairly wide spread of the market, from mass-market hatchbacks and SUVs to some of the more premium electric offerings sold in India today, so a good chunk of Delhi's car-buying population should find themselves eligible.
Building the Infrastructure to Match the Ambition
A policy built around incentives only works if the charging network keeps pace, and Delhi seems to have factored that in.
The plan includes installing 32,000 EV chargers across the city, a number that should go a long way towards easing range anxiety for new EV owners.
Alongside this, the policy also lays out a phased electrification roadmap for commercial vehicles, two-wheelers, and institutional fleets, suggesting the government wants this to be a citywide shift rather than one limited to private car owners.
Why This Matters Going Forward
Delhi has tried various measures over the years to fight its pollution woes, from odd-even schemes to graded response action plans, with mixed results. This EV policy takes a different tack, leaning on financial incentives and infrastructure rather than restrictions.
Whether it moves the needle on the capital's air quality will largely depend on execution, particularly how quickly those 32,000 chargers actually get installed and how smoothly the scrappage incentive is rolled out at the dealership level.
For now, though, prospective EV buyers in Delhi have a fresh reason to bring their purchase plans forward to July.
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