New Delhi, September 2025 – In a significant development for the electric mobility sector, the Delhi government, led by Chief Minister Rekha Gupta, has announced the clearance of ₹140 crore in pending EV subsidies, addressing a long-standing grievance of beneficiaries who have been waiting for their dues for nearly two years.
The decision comes shortly after the Delhi High Court’s sharp observations on September 3, where it criticized the state for citing procedural hurdles while failing to release subsidy payments under the 2020 EV Policy. The court highlighted that the policy lacked defined payment timelines, thereby leaving buyers and manufacturers in prolonged uncertainty.
High Court Pushes for Swift Action
During the hearing, the High Court directed the Transport Department to stop delaying payments and prioritize the release of funds. The court also emphasized that financial incentives promised under government schemes cannot remain in limbo due to administrative inefficiencies.
Responding to the directive, the Delhi government has now set the ball rolling by beginning the verification of all pending subsidy applications that have accumulated since 2023. Once the process is completed, disbursement is expected to begin immediately, bringing long-awaited relief to thousands of EV owners and stakeholders.
Policy Extended & Future Roadmap
In parallel, the government has extended the Delhi EV Policy till March 2026. A ministerial committee is also in the process of drafting EV Policy 2.0, which is expected to introduce stronger financial support, better infrastructure for charging, and a roadmap for large-scale electrification across public and private transport.
The extension ensures continuity for buyers and manufacturers who had raised concerns over uncertainty in incentives as the original 2020 policy was nearing its deadline.
Delhi’s EV Uptake So Far
Since its launch in 2020, Delhi’s EV Policy has been one of the most successful in India:
The pending ₹140 crore subsidy clearance will further strengthen buyer confidence and encourage more citizens to adopt EVs.
Why This Matters
The delay in subsidy payments had raised concerns among consumers and manufacturers, risking the credibility of the policy itself. With the High Court’s intervention and the government’s commitment to clear dues, the trust factor is expected to return, giving a boost to EV sales and maintaining Delhi’s lead in India’s clean mobility transition.
Key Takeaways:
- Delhi govt to clear ₹140 crore pending EV subsidies.
- Move follows Delhi High Court criticism over delays.
- Policy extended till March 2026; EV Policy 2.0 under drafting.
- 2.19 lakh EVs benefited so far, with ₹177 crore disbursed.
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