Delhi’s new EV policy: Now registration fee, road tax and Rs 1.5 lakh incentive on purchase of electric vehicles

Delhi government on Friday announced a new electric vehicle policy under which it will waive the registration fee and road tax, and provide an incentive of up to Rs 1.5 lakh for new cars in the national capital. Announced by the state chief minister Arvind Kejriwal, the new policy to boost the economy, create jobs, and reduce pollution levels in the national capital. 

“The policy has two objectives. First, to boost Delhi’s economy after the coronavirus pandemic. Second, to significantly reduce the pollution level and contribute to sustainable development,” Kejriwal said. 

He announced that the Delhi government will give an incentive of up to Rs 30,000 for two-wheelers, autos, and e-rickshaws while for cars, it will give an incentive of up to Rs 1.5 lakh, he said. Kejriwal highlighted that these incentives are over and above already existing incentives for e-vehicles under the central government. 

"After launching this policy, we expect five lakh new electric vehicles in the next five years... The Delhi government will set up dedicated 'EV Cell' to implement 'electric vehicle policy," Kejriwal said. 

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He also added the government will also set up a 'State Electric Vehicle Board'. 

Not just this, the Delhi government will also provide a scrapping incentive for replacing the fuel-based vehicle with e-vehicle. Interest on loans for the purchase of e-vehicles for commercial activities will be waived and e-vehicles will be exempted from registration fees and road tax, he said. 

The Central government has started focusing more towards electric vehicles and has been working on developing infrastructure for the same. Meanwhile, the Delhi State cabinet had approved the Delhi Electric Vehicle (EV) Policy, 2019, last year with an aim to reduce air pollution by offering subsidies and waiving road tax and registration fee for electric vehicles bought in the national capital.