The Delhi government’s soon-to-be-announced Electric Vehicle Policy 2.0 proposes a first-of-its-kind incentive of ₹50,000 for owners who convert their petrol and diesel cars into electric vehicles through retrofitting, targeting the first 1,000 conversions.
This move aims to significantly reduce vehicular pollution in the national capital by transforming existing internal combustion engine (ICE) vehicles instead of relying solely on new EV purchases.
Besides retrofitting subsidies, the policy includes expanded EV purchase incentives for two- and four-wheelers, increased research and development funding, financing support, scrapping-linked benefits and plans to boost charging infrastructure all aimed at accelerating the adoption of cleaner mobility and making EVs more affordable in Delhi.
Giving Old Vehicles a New Lease of Life
Under the draft EV Policy 2.0, currently being finalised and expected to be presented for Cabinet approval in the first quarter of 2026, the Delhi government is considering offering a ₹50,000 incentive per vehicle to owners who retrofit their petrol or diesel cars into electric ones. This incentive would apply to the first 1,000 vehicles that complete the process, signalling a cautious but innovative start for the programme.
Retrofitting involves removing the internal combustion engine (ICE) and related parts and replacing them with an electric powertrain, battery and controller. For many owners of older vehicles some of which are nearing the capital’s age-based road usage limits this presents an alternative to scrapping or selling vehicles outside the city. Officials argue that the incentive is designed to make conversion financially viable, given that retrofit kits can be costly and vary across models.
A senior transport department official told The Indian Express that the incentive scheme is under active consideration and that EV Policy 2.0 seeks not only to accelerate EV adoption but also to discourage older, polluting vehicles from dominating city roads. He added that a final decision will follow Cabinet approval.
Beyond the retrofitting incentive, the draft policy proposes several supportive measures: dramatic increases in research funding (from ₹5 crore to ₹100 crore) for EV technologies, expanded subsidies for battery-swapping infrastructure, and safety rating systems for e-rickshaws and e-carts, which are already fully electric but often rely on older lead-acid batteries.
Pollution, Policy & Behaviour Change
Delhi’s chronic air pollution remains a major public health crisis. The city routinely records hazardous air quality levels, with vehicular emissions identified as a significant contributor. Existing regulations already restrict the use of older vehicles petrol cars older than 15 years and diesel cars older than 10 years are banned from operating on Delhi roads under Supreme Court and environmental authority directives, forcing owners to scrap or remove them.
The retrofitting incentive addresses this challenge by encouraging continued use of vehicles in a cleaner form rather than simply removing them from circulation. It is an acknowledgment that many residents rely on their cars for daily commuting and may be unable to afford a new EV outright.
Moreover, the draft EV Policy 2.0 looks beyond retrofits. It outlines varied purchase incentives for electric two-wheelers (including potentially higher subsidies for women riders) and electric cars, with officials suggesting up to ₹1 lakh per electric car for the first 27,000 registrations under certain conditions.
Financing support such as interest subvention schemes covering a portion of EV loan interest is also being considered to make EVs more affordable for middle-income households.
To support the city’s broader EV ecosystem, the policy contemplates a Battery Energy Storage System (BESS) capacity build-out of up to 2.5 GWh by 2030 to manage peak electricity demand and ensure grid stability, and plans to drastically expand charging and battery-swapping stations with the goal of installing over 13,000 charging points across Delhi by 2030.
These measures collectively reflect a nuanced approach: addressing supply (charging, manufacturing support), demand (subsidies, financing) and behavioural incentives (retrofitting, scrappage benefits) to bolster the shift away from fossil fuels.
Voices from the Ground: What Stakeholders Say
Government officials have framed EV Policy 2.0 as the capital’s “most ambitious EV push yet,” emphasising a combination of consumer and industry incentives designed to accelerate the transition to clean mobility.
They argue that traditional incentives alone focused on new EV purchases are insufficient without addressing the existing fleet of ICE vehicles that continue to contribute disproportionately to pollution.
Transport department sources point out that retrofitting could particularly appeal to owners of premium or luxury cars, which often fetch very low prices when scrapped, making outright conversion a more attractive alternative.
Environmental experts have cautiously welcomed the idea, noting that ensuring high-quality safety standards for retrofit kits and reliable performance will be key to broad acceptance among consumers. Some industry insiders, however, have highlighted the challenge posed by high up-front retrofit kit costs and the need for clear regulatory standards to avoid inconsistent outcomes across vehicle types.
The Logical Indian’s Perspective
The draft Electric Vehicle Policy 2.0 represents an important evolution in Delhi’s approach to sustainable mobility. It goes beyond conventional subsidy models by integrating retrofit incentives, which respects the existing investments of vehicle owners while accelerating the shift to cleaner technology. This reflects a compassionate policy orientation that takes into account the economic realities of ordinary citizens who may not be able to transition to new EVs immediately.
However, enthusiasm for retrofitting must be tempered with rigorous safety and quality standards. Poorly executed conversions could undermine not only vehicle performance but also public confidence in clean mobility initiatives. Transparency in implementation, inclusive outreach to diverse socio-economic groups, and meaningful public consultation will be critical to ensure that this innovative policy yields the desired environmental benefits.
