Delhi Announces Interest Subvention Scheme of 5% in EV Purchases

Delhi Transport minister Kailash Gahlot has announced that the government is soon going to introduce an interest subvention scheme worth 5 percent for electric vehicle (EV) purchases in the state.

This initiative has been taken to promote the Delhi government’s EV policy offering financial incentives on all categories of e-vehicles – two-wheelers, three-wheelers, four-wheelers, goods carriers, electric rickshaws.

The minister announced, “We are at an advanced stage of drafting this proposed scheme and it will be announced soon. This scheme can be availed by all range of vehicles and will ensure easy access of finance to those companies who are willing to upgrade their fleet to electric.”

Gahlot also said that the seventh week of the ‘Switch Delhi’ campaign will focus on raising and creating awareness among one of the most important segments – commercial fleet vehicle owners thereby targeting a large group to adopt and promote electric vehicles in the National Capital.

“To encourage and promote a smooth transition of commercial vehicles to electric vehicles, the Delhi government has taken many progressive steps under the Delhi Electric Vehicle policy launched in August 2020. Delhi today provides the most favorable policy framework across India for commercial vehicles to transition to EVs,” Gahlot said in a statement.

Highlighting the steps taken by the AAP Government to ensure the effortless and rapid transition of commercial vehicles to electric vehicles, Gahlot noted that all the categories of EVs are eligible to avail huge financial incentives under the Delhi EV Policy. He further added, “By switching to an EV, the fleet owners would not only take a step towards ensuring the better air quality in the national capital but can save money annually. A two-wheeler fleet owner can save up to Rs 22,000 annually by switching to electric.”

To promote its EV policy claiming it a move against toxic air pollution of the national capital, the Kejriwal government claimed to have also offered an incentive of up to Rs 30,000 for two-wheelers, auto-rickshaws, and e-rickshaw, while for goods carrier vehicles and cars up to Rs 1.5 lakh.

The Delhi government has constantly been bringing policies, incentives to accelerate EV adoption in the state. Recently it has mandated the entire vehicle fleet of all Delhi officials to transit into EVs within six months. Not only this, but the government has also announced of The Delhi government is providing scrapping incentives, including up to Rs 7,500 per vehicle for auto and light commercial vehicles, under EV policy.

As evidence of the results of the Delhi EV Policy, the DDC vice-chairperson Jasmine Shah recently, announced that the share of EVs in the city has increased from less than 1 percent to 2.2 percent in three months after the announcement of the EV policy by the Delhi government. Delhi EV Purchases