Delhi Government Evaluates Retrofit Incentive Scheme for Older Petrol and Diesel Vehicles under EV Policy 2.0
The Delhi Transport Department is currently reviewing a proposal to introduce financial incentives for converting older petrol and diesel vehicles into electric vehicles (EVs) as part of its upcoming EV Policy 2.0. The initiative aims to bridge the gap in electric vehicle adoption by offering a practical alternative to scrapping vehicles, particularly for owners of high-value or luxury models where resale value is low.
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Key Details of the Proposed Retrofit Incentive
Under the draft policy, a one-time incentive of ₹50,000 will be offered for the first 1,000 vehicles that undergo electric retrofitting. This measure is intended to encourage owners of vehicles that are otherwise barred from operating in Delhi due to age restrictions to transition to electric powertrains. The proposal is currently under evaluation and requires formal approval from the Delhi Cabinet before implementation.
Vehicle Age Restrictions in Delhi
Delhi has already imposed strict operational restrictions on older vehicles. Petrol vehicles older than 15 years and diesel vehicles older than 10 years are currently prohibited from operating within the city. These rules are part of the government’s broader effort to reduce vehicular emissions and improve air quality. The retrofit incentive is designed to provide a pathway for owners of such vehicles to comply with these regulations without having to replace their vehicles entirely.
Boost to R&D Investment in EV Ecosystem
The draft EV Policy 2.0 also includes a significant increase in the dedicated research and development (R&D) corpus. The funding is being raised from ₹5 crore to ₹100 crore, which will support innovation in EV technologies, including battery efficiency, charging infrastructure, and retrofitting solutions. This expansion is expected to strengthen local technical capabilities and foster partnerships between academic institutions, startups, and industry players.
Targeting the Two-Wheeler Segment
While the retrofit scheme primarily targets private and commercial vehicles, the policy also emphasizes a strategic push in the two-wheeler segment. With over 6 lakh two-wheelers registered annually in Delhi, the government is focusing on expanding EV adoption in this high-volume, low-cost segment. This includes initiatives to improve charging infrastructure and introduce safety rating frameworks for electric rickshaws and e-carts, which are widely used in urban transport.
Focus on Premium and Luxury Vehicles
Officials familiar with the matter have indicated that the retrofit scheme may be particularly relevant for owners of premium and luxury vehicles. These vehicles often have limited resale value, making scrapping economically unviable. By offering a financial incentive for conversion, the policy could help owners transition to EVs without incurring substantial losses.
It is important to note that while the policy addresses a significant gap in EV adoption, certain technical and operational challenges remain. Retrofitting vehicles, especially those with older transmissions or complex powertrains, may require significant modifications. The feasibility of such conversions will depend on the integration of electric systems with existing mechanical components, which could impact vehicle performance and maintenance costs.
Broader Environmental and Urban Goals
The initiative aligns with Delhi’s larger environmental objectives, including reducing urban air pollution and achieving its net-zero emissions target by 2040. By offering a viable pathway for existing vehicle owners to transition to electric power, the policy complements existing incentives for purchasing new EVs and supports a more inclusive and phased approach to electrification.
While the proposal has been welcomed by several environmental and transport advocacy groups, experts caution that long-term success will depend on clear implementation timelines, accessible retrofitting services, and public awareness campaigns. Additionally, the absence of specific data on the expected number of retrofit conversions or the projected timeline for rollout highlights the need for further clarification from the government.
Next Steps
The proposal is currently under review by the Delhi Transport Department and will be presented to the Delhi Cabinet for final approval. Once approved, the scheme is expected to be launched in phases, beginning with pilot projects in select zones. The government has not yet provided a timeline for the rollout, nor has it detailed the process for vehicle eligibility, retrofitting service providers, or verification of conversions.
