New Delhi, Jan. 5 -- The Delhi government is considering a new incentive scheme to encourage vehicle owners to convert their ageing petrol and diesel cars into electric vehicles (EVs), instead of scrapping or selling them outside the capital. Under the proposed plan, the government may offer a subsidy of up to Rs.50,000 for the first 1,000 cars that undergo retrofitting, a move aimed at reducing vehicular pollution and promoting cleaner mobility.
An official aware of the development told some media that the proposal is part of the Transport Department's draft Electric Vehicle Policy 2.0, which is currently under consideration. The policy focuses on expanding the adoption of EVs across categories and strengthening Delhi's long-term strategy to combat air pollution. The official added that the final decision on the incentive would be taken only after approval from the Delhi Cabinet.
Retrofitting involves replacing the internal combustion engine of an existing petrol or diesel vehicle with an electric powertrain and battery system. Although the idea is not entirely new and was explored earlier as well, its adoption has remained limited due to the high cost of retrofit kits and the conversion process. The government hopes that targeted financial support will make retrofitting a more viable option for vehicle owners.
According to another official, the initiative is expected to particularly benefit owners of premium cars. Many people who own high-end vehicles such as Mercedes-Benz or BMW models are reluctant to scrap them once they reach the end-of-life limit. "These vehicles are expensive investments, and scrapping them often yields very low returns. Incentives for retrofitting will help owners reuse their cars in an environment-friendly way," the official said.
The draft EV Policy 2.0 also proposes several other measures, including incentives for buyers who purchase electric vehicles after scrapping old ones, a significant increase in funds for EV-related research and development from Rs.5 crore to Rs.100 crore, and a plan to raise the number of electric two-wheelers in Delhi from 5 lakh to 12 lakh in the coming years. The policy also suggests introducing safety ratings for e-rickshaws and electric carts. The proposal comes shortly after restrictions under Stage III of the Graded Response Action Plan (GRAP) were lifted, following an improvement in air quality. While BS4 and higher vehicles with valid Pollution Under Control certificates are now permitted, BS3 petrol vehicles continue to face restrictions in the region.
Published by HT Digital Content Services with permission from Millennium Post.