NEW DELHI: India’s capital New Delhi will offer a cash incentive of over $1,000 to car owners willing to scrap their old vehicle for an EV, according to a new policy finalised by the government on Monday in a move aimed at reducing high levels of air pollution.

New Delhi is one of the world’s most polluted cities with air quality worsening in the winters when dense, stagnant air traps emissions from crops burning in neighbouring states, vehicle exhaust and construction dust.

The local government in New Delhi finalises new electric vehicle policy with an outlay of 150 billion rupees ($1.59 billion) over four years to incentivise buyers of electric two-wheelers, cars and small trucks, as well as setting up EV chargers.

To offer $1,060 as scrapping incentive to those who trade in cars bought before April 1, 2020 for an EV. Those buying a battery EV priced at up to 3m rupees will be exempt from paying road tax and registration fees, which typically amo­unt to 4pc-10pc of the car’s price. Buyers of electric scooters and motorbikes will get a cash incentive of 30,000 rupees in the policy’s first year, reducing to 10,000 rupees by year thr­ee. The government will only register electric two-wheelers in 2028, forcing buyers to mo­­ve away from gasoline and other powertrains.

Published in Dawn, June 30th, 2026