A 50% 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) petrol two-wheelers from April 2028 and CNG autorickshaws from 2027, as well as incentives on purchase of electric two- and three-wheelers — these are among the key proposals in the draft Electric Vehicle Policy 2026, released by the Delhi government on Saturday, inviting suggestions and comments from the public by May 10.The current policy, launched in 2020 and extended multiple times, had expired on March 31. Thereafter, it was extended again for three months.As per the draft, all kinds of electric vehicles (EV) registered in Delhi since the notification of the policy, including cars priced up to Rs 30 lakh (ex-showroom), will get 100% exemption from road tax and registration fees until March 31, 2030. However, the draft draws a clear line for higher-end vehicles, stating that electric cars priced above Rs 30 lakh will not be eligible for any exemption.Until now, Delhi has not provided a road tax exemption on strong hybrid cars. As per the draft, people who are looking to buy such cars — which allows the driver to switch from electric to fuel — will get a 50% discount on road tax and registration fees applicable for new cars.On March 12, besides road tax and registration fee exemptions for electric cars, The Indian Express had also reported that year-wise incentives for electric two-wheelers and e-autorickshaws, along with incentives for scrapping old vehicles, expansion of charging infrastructure, as well as setting up systems for battery recycling are likely to be among the key features of the government’s upcoming EV Policy.Chief Minister Rekha Gupta said that the policy, proposed until March 31, 2030, is a significant initiative towards establishing a clean, accessible, and sustainable transport system in the Capital. “All purchase incentives will be provided directly to eligible beneficiaries through Direct Benefit Transfer. This will include individuals, proprietorship firms, agencies, and companies that are from Delhi and whose vehicles are registered here.”In the draft policy, to accelerate the adoption of EVs, the Transport department 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.Story continues below this ad“Two-wheelers constitute approximately 67% 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…,” reads the draft.A similar incentive structure has been proposed for e-autorickshaws, 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.Further, the draft 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 adFurther, the draft proposes incentives for electric trucks (N1 category) to promote EV adoption in the commercial vehicle segment. It also proposes scrapping incentives to remove end-of-life polluting vehicles from the roads.Moreover, the draft talks about the government’s plan to strengthen charging and battery swapping infrastructure and battery recycling in a systematic way. For this, a dedicated digital portal will be developed, through which the entire process of approval, monitoring, and operation of charging and battery-swapping infrastructure will be executed.“For effective implementation of the new policy, an ‘EV Fund’ will be established,” said Gupta. Maintaining that an overall budget of Rs 3,954.25 crore has been allotted for this policy, the CM said that while Rs 1,236.25 crore will be used for purchase incentives, Rs 1,718 crore will be spent on scrapping incentives, and Rs 1,000 crore on the development of EV charging infrastructure.Transport Minister Dr Pankaj Kumar Singh said, “Our EV policy is designed to make clean mobility accessible and affordable while significantly reducing pollution. By offering tax exemptions, incentives, and expanding charging infrastructure, we aim to accelerate the transition to electric vehicles and build a sustainable transport system for the future.”