A 50 per cent exemption on road tax and registration fees for strong hybrid cars priced up to Rs 30 lakh, a proposed ban on registration of new internal combustion engine (ICE) two-wheelers from April 2028, CNG autos from 2027 and incentives on purchase of electric two- and three-wheelers are among the key proposals in the much-awaited Electric Vehicle Policy-2026, released by the Delhi Government on Saturday for public comments.According to the policy, all electric vehicles registered in Delhi since the notification of the policy will get a 100 per cent exemption from road tax and registration fees, subject to specified conditions. While the electric cars priced up to Rs 30 lakh (ex-showroom) will continue to enjoy full exemption on these charges till March 31, 2030, strong hybrid vehicles will be eligible for a 50 per cent exemption.Till now, Delhi has not provided a road tax exemption on strong hybrid cars. This means people who are looking to buy this car model, which allows the driver to switch from electric to fuel, will get a 50 per cent discount on road tax and registration fees applicable for new cars. Earlier, the UP government provided the incentive, but it stopped after some time.However, the draft policy draws a clear line for higher-end vehicles, stating that electric cars priced above Rs 30 lakh will not be eligible for any exemption on road tax and registration fees.Chief Minister Rekha Gupta said that the proposed draft Delhi EV Policy 2026 is a significant initiative towards establishing a clean, accessible, and sustainable transport system in the capital.She informed that this policy is proposed until March 31, 2030, and under it, special emphasis has been placed on extensive financial incentives, tax exemptions, mandatory provisions, and infrastructure development to promote electric vehicles.“Under this policy, all purchase incentives will be provided directly to eligible beneficiaries through Direct Benefit Transfer (DBT). This will include individuals, proprietorship firms, agencies, and companies that are residents of Delhi and whose vehicles are registered in Delhi. Beneficiaries will be able to apply for the subsidy directly through the mechanism notified by the Transport Department,” she said.Story continues below this adTo accelerate the adoption of EVs, the department has proposed major incentives only for the first three years. For instance, buyers purchasing an electric two-wheeler priced up to Rs 2.25 lakh (ex-showroom) will receive an incentive of Rs 10,000 per kWh, up to a maximum of Rs 30,000 in the first year after the date of notification.The incentive will be reduced yearly. In the second year, buyers will receive Rs 6,600 per kWh, capped at Rs 20,000, while in the third year, the incentive will drop to Rs 3,300 per kWh, up to a maximum of Rs 10,000.“Two-wheelers constitute approximately 67 per cent of the total vehicle stock in Delhi, making their rapid electrification critical for achieving meaningful reductions in vehicular emissions. Further, three-wheelers, commercial cars, and N1 category goods vehicles exhibit high daily utilisation and mileage, resulting in a disproportionate contribution to urban air pollution. Accordingly, prioritised electrification of these vehicle segments is essential to achieve sustained improvements in air quality in Delhi,” read the policy.A similar incentive structure has been proposed for electric auto-rickshaws, with an incentive of Rs 50,000 offered in the first year, Rs 40,000 in the second, and Rs 30,000 in the third year.Story continues below this adOfficials said Delhi sees a large number of two-wheeler registrations each year.The key aim of this policy is to accelerate adoption of EVs across all major vehicle segments, support installation of a comprehensive public and private charging network across the city, enable a robust EV supply chain including battery recycling, servicing, and component recovery, improve air quality by reducing reliance on Internal Combustion Engine (ICE) vehicles and ensure fiscal efficiency and transparent implementation, said CM Gupta.Incentives for electric trucksThe draft policy also proposes incentives for electric trucks (N1 category) to promote EV adoption in the commercial vehicle segment.“The eligibility of EV models for purchase incentives will be aligned with the Centre’s PM E-Drive scheme and other related programs… so that more and more people switch to electric vehicles,” said the official.Story continues below this adBesides, the policy also proposes scrapping incentives with the aim to remove end of life polluting vehicles from the city roads and pushing people to switch from conventional cars to electric cars.The policy also proposes a range of scrappage-linked incentives to accelerate the transition to cleaner vehicles. Buyers of electric two-wheelers will be eligible for a Rs 10,000 incentive on scrapping BS-IV and older vehicles, while those purchasing electric three-wheelers (L5M) will get a Rs 25,000 incentive.For electric cars priced up to Rs 30 lakh, the incentive has been pegged at Rs 1 lakh, limited to the first 1 lakh eligible applicants, while buyers of electric four-wheeler goods carriers (N1 category) will receive Rs 50,000.These incentives will be applicable only if the new vehicle is purchased within six months of obtaining a Certificate of Deposit from an authorised scrapping facility, and will be disbursed directly to the registered owner through a direct benefit transfer mechanism.Story continues below this adThe current policy, launched in 2020 and extended multiple times, expired on March 31. Thereafter, it was extended again for three months.Officials said that they have made the draft policy public, inviting suggestions and comments.The department stated that interested persons can submit their views within 30 days from the date of publication of the notice, which is until May 10, 2026. Suggestions can be sent via email to evpolicy2026@gmail.com or by post to the department.“After that, it will be implemented on the ground,” said an official.Story continues below this adThe policy also talks about its plan to strengthen charging and battery swapping infrastructure and battery recycling in a systematic way.Under this, a dedicated digital portal will be developed or integrated, through which the entire process of approval, monitoring, and operation of charging and battery-swapping infrastructure will be made transparent and effective.“For effective implementation of this policy, an EV Fund will be established, which will include state budgetary allocation, central and state government schemes and grants, Air Ambience Fund, Environment Compensation Charge, PM E-Drive scheme, taxes, and other approved sources,” said the CM.Gupta said that a total budget of Rs 3,954.25 crore has been fixed for this ambitious policy. In this, a provision of Rs 1,236.25 crore has been made for purchase incentives, Rs 1,718 crore for scrapping incentives, and Rs 1,000 crore for the development of charging infrastructure.Story continues below this adAccording to the year-wise expenditure, Rs 965.5 crore will be spent in the first year of notification, Rs 1,012.75 crore in the second year, Rs 1,231.5 crore in the third year, and Rs 744.5 crore in the fourth year.She expressed confidence that the draft Delhi EV Policy-2026 will rapidly move Delhi towards a clean, green, and modern transport system and will provide better and accessible transport facilities to the citizens, along with reducing pollution.