Delhi Government to Revise EV Policy: Easing Deadlines and Capping Surge Pricing

The Delhi government is preparing to revise its Electric Vehicle (EV) and delivery aggregator regulations, initially introduced in November 2023. The updated draft aims to extend the transition period for bike taxi operators and set a cap on surge pricing—moves driven by concerns raised by ride-hailing providers, gig workers, and commuters.

Policy Background

The current EV scheme, launched in August 2020 and later expanded to include delivery services in November 2023, mandates fleet operators—cabs, bike taxis, delivery, and logistics—to transition to electric vehicles. It also requires registration, licensing, structured grievance redressal, driver rating systems, and driver training 

Concerns from Stakeholders

Stakeholders have highlighted practical and financial challenges. Immediate EV mandates, especially for bike taxis, are regarded as unviable due to the high cost of EV two-wheelers and limited charging infrastructure. They argue that a phased transition could make electric uptake more manageable .

Massage for Transition Timelines

Officials are considering relaxing the deadline for bike taxis to adopt EVs, aligning them with longer timelines granted to commercial two- and three-wheelers—four to five years  This adjustment is intended to ease operational pressure on small operators.

Surge Pricing Controls

Regulators aim to introduce a cap on surge pricing via the transport department. This addresses the rising cost of on-demand services for passengers and reflects concerns shared by gig workers about unpredictable fare spikes .

EV Policy 2.0 Draft

Simultaneously, the transport department is crafting EV Policy 2.0, expected to be approved by July 2025. A 10-member expert committee is reviewing aspects such as charging infrastructure, battery recycling, CNG-to-EV transition, subsidies, last-mile connectivity, and gender-specific incentives 

Subsidies and Phase-out Proposals

The draft includes incentives like general subsidies of ₹10,000/kWh for two-wheelers (capped at ₹30,000), scrappage incentives for ICE vehicles, and extra subsidies for women buyers—₹12,000/kWh up to ₹36,000 on the first 10,000 women beneficiaries

It also proposes ending registrations for petrol and CNG two-wheelers by August 15, 2026, and for petrol/diesel/CNG autos by August 2025. However, recent versions have removed binding deadlines for existing vehicles 

Charging Infrastructure Push

The revised policy aims to expand fast-charging and battery-swapping stations every five kilometers along major routes, including flyover spots, and brand EV corridors. Delhi already has over 4,600 charging points and 250 battery-swap stations 

Employment and Implementation Timeline

The government expects to create approximately 20,000 jobs through infrastructure expansion. The committee submits fortnightly progress reports, with a June–July rollout expected 

Conclusion
Delhi’s policy revisions reflect a calibrated approach to EV transition. Relaxed mandates for bike taxis and capped surge pricing aim to balance eco-goals with ground-level realities. With updated subsidies, charging networks, and a structured implementation timeline, the strategy seeks to accelerate EV adoption while supporting stakeholders and expanding green infrastructure.

Source: Outlook Business