India’s national capital’s struggles to improve its notorious air quality are well known. The state EV policy focuses on bringing down air pollution levels. The policy imposes a pollution cess on the sale of new petrol/diesel vehicles as well as existing ICE vehicles. It has a target of electrifying half its bus fleet and 25% of the newly registered vehicles by 2023. The policy also encourages charging infrastructure deployment, with plans to install charging stations every 3 kms.


  • 50% subsidy for 2W from FAME 2, and fixed capital subsidy of ₹30,000 for 3W
  • Interest subvention of 5% on loans for 4 W up to ₹10,000 per kWh (max ₹ 1,50,000 per vehicle)
  • 100% subsidy for the purchase of charging equipment up to ₹6,000 per charging point
  • Target of 500,000 new EVs on the road in the next five years
Policy focus areasDemand side incentivesIncentives for charging infrastructureManufacturing incentives for EVs and componentsResearch and innovation
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