Delhi to Disburse Subsidies Within Two Days of Electric Vehicle Purchase

The Delhi Government announced that it would soon introduce a subsidiary plan under its recently launched electric vehicle (EVs) policy for buyers of electric vehicles, according to a Press Trust of India (PTI) report.  The subsidy program is likely to be launched in a week.

In August 2020, the Delhi government issued the Delhi Electric Vehicle Policy, 2020, to speed up the pace of EV adoption, primarily in the category of two-wheelers, public transport vehicles, and goods carriers. It also planned to boost the adoption of battery electric vehicles, so they contribute to 25% of all new vehicle registrations by 2024.

The policy, steered by an ‘EV Cell,’ presented a five-year roadmap that will see 500,00 EVs on roads of the national capital.

Under the policy, the Delhi government will provide purchase incentives of ₹30,000 (~$ 408.09) to electric two-wheelers, e-rickshaws, and goods carriers, while purchase incentives ranging from ₹10,000 (~$ 136.03) to ₹150,000 (~$ 2040.47) will be provided for electric cars. To be eligible for these incentives, EVs must fulfill the same performance and efficiency eligibility criteria as specified in the central government’s Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) policy.


The government plans to pay the subsidies within two days to eligible EV buyers in Delhi through a software developed by the ICICI Bank.

A software demonstration for disbursal of the subsidy under the policy was recently made by executives of a private bank in a meeting with Transport Minister Kailash Gahlot.

The EV sellers have to register themselves with the Transport Department of the Delhi Government to process incentives on EVs.The EV sellers will have to add details about consumers on the software on the sale of EVs. The government will credit the incentives in the bank account of EV buyers after the authentication of the motor licensing officer.

The Delhi Electricity Regulatory Commission recently wrote a letter to distribution licensees in the city asking them to implement necessary safety measures before providing power to newly installed electric vehicle charging stations.

Last year, Delhi cut down the rates of charging stations for e-rickshaws and other electric vehicles. This has further incentivized the pace of the EV adoption process, which in turn is likely to push consumers toward electric mobility.

Read Mercom’s latest report on the EV segment’s performance during the pandemic.