New Delhi: Car buyers in Delhi have been without subsidies for electric vehicles (EVs) for six months due to the non-renewal of the city’s EV policy. This policy, which provides financial incentives for EV purchases, lapsed on December 31, 2023, and was due for extension in January 2024.
However, bureaucratic delays have prevented the renewal, leaving potential buyers without much-needed support. The official from Transport Ministry highlighted that the extension was delayed by bureaucratic procedures, depriving the public of subsidy benefits. “This should be expedited so that the people can benefit and Delhi can continue to be the No. 1 state in terms of EV penetration,”
A transport department official explained that although the state cabinet approved the executive order for the policy extension, it could not be implemented due to the model code of conduct in place for the Lok Sabha elections. “We have now sent the extension proposal again for approval,” the official said, adding that it is expected to be cleared within a week. Compounding the issue were technical problems with the bank managing the EV subsidy portal. The portal had not used vehicle numbers as unique identifiers, leading to potential discrepancies. The official noted, “The delay was on the part of the bank. However, now the portal has been rectified.” The EV policy offers subsidies for various categories of electric vehicles. For electric two-wheelers, the subsidy is Rs. 5,000 per kWh of battery capacity, with a maximum of Rs. 30,000. For three-wheelers, a flat subsidy of Rs. 30,000 per vehicle is provided, irrespective of cost and battery capacity. However, the subsidy for four-wheelers is no longer applicable as it was offered only for the first 1,000 EVs registered under the scheme.
The government had aimed to introduce EV Policy 2.0 last October, following the expiration of the current policy in August. Despite consultations with stakeholders, the new policy’s formulation was stalled, resulting in repeated extensions of the old policy. The shift to EVs is the most significant transformation in vehicle use in Delhi since the transition from petrol and diesel to CNG. The sales of commercial EVs have surged, from 426 in 2021 to 2,515 in 2022, and 2,453 in 2023. A faculty member at the Asian Institute of Transport Development, warned that the prolonged absence of subsidies could deter many potential EV buyers in Delhi, potentially slowing the adoption of eco-friendly transportation. “An EV has a higher upfront cost and it is still in a nascent stage. The government should ensure a subsidy to popularise the purchase of EVs,” he stated. Without this support, the enthusiasm among EV stakeholders may diminish, he added.
