India, April 3 -- The Delhi government has proposed a significant tweak to its existing electric vehicle (EV) policy, which may lead to an increase in the cost of petrol and CNG vehicles, people aware of the plan said on Wednesday.

The policy tweak, the people said, will lead to the extending of an existing "green cess" - currently applicable only for diesel vehicles -to all internal combustion engine (ICE) vehicles, thereby increasing their cost. This, they said, is being proposed in order to disincentive the sale of petrol and CNG vehicles in the Capital.

Another option that is being explored is hiking the cost of petrol and CNG in the city, they said.

Delhi's EV Policy 2020 - which charges a cess of 1% on diesel vehicles - expired i...