Scrapping old BS4 vehicles could soon unlock direct cash incentives in Delhi, with up to ₹100,000 offered for electric cars under the city’s new EV policy.
The Delhi government is preparing to introduce a revised electric vehicle (EV) policy designed to accelerate adoption in the capital by reducing upfront costs and encouraging the replacement of older, polluting vehicles.
For five consecutive months, Delhi has grappled with poor air quality. On Saturday, 21 March 2026, the city’s Air Quality Index (AQI) registered a satisfactory level of 94 at 8 AM; the first such improvement since 8 October 2025.
A central feature of the proposed framework is a scrappage-linked incentive scheme. Owners of BS4 or older Delhi-registered vehicles who scrap them at authorised centres will be eligible for financial benefits, provided they purchase a new EV within six months of receiving the scrappage certificate.
Moreover, the incentives vary by vehicle type. Buyers of electric two-wheelers will receive ₹10,000, while those opting for electric three-wheelers will be entitled to ₹25,000. The largest benefit is reserved for car buyers: those purchasing an electric car priced up to ₹1.5 million, ex-showroom, will be eligible for ₹100,000. This benefit will be limited to the first 100,000 applicants.
All payments are expected to be made directly to beneficiaries through a direct benefit transfer (DBT) system. The transport department will issue detailed guidelines on the claiming process.
In addition to direct incentives, the government plans to extend tax relief measures. Electric vehicles priced up to ₹3 million, ex-showroom, will continue to enjoy full exemption from road tax and registration fees until 31 March 2030. Vehicles priced above this threshold will not qualify for the exemptions.
Officials argue that the combination of scrappage incentives and tax relief will help accelerate EV adoption while simultaneously reducing the number of older, high-emission vehicles on Delhi’s roads.
The policy is expected to be formally rolled out later this year, with the government positioning it as a key step in meeting the city’s clean mobility and air quality targets.
