Delhi Accelerates EV Adoption: High Court Orders Disbursement of Pending Subsidies
In a significant development for electric vehicle (EV) enthusiasts and environmentally conscious citizens, the Delhi government is set to disburse approximately ₹140 crore in pending EV subsidies following a directive from the Delhi High Court. The court's intervention has ended a backlog that persisted for over two years, affecting more than 2.19 lakh vehicle owners across the city.
Background of the Subsidy Delay
The delay in releasing EV subsidies was primarily linked to procedural hurdles and administrative disruptions. Officials attributed the backlog to the arrest of former Chief Minister Arvind Kejriwal in an excise policy case last year, which halted cabinet meetings and stalled policy extensions. As a result, the EV policy, initially launched in August 2020, lapsed in August 2023 but was extended until March 2026. During this period, thousands of EV buyers faced delays in receiving promised incentives.
The Delhi EV Policy 2020 was a pioneering step aimed at transforming the city's transport landscape by promoting electric mobility. Since its launch, over 2.19 lakh vehicles have benefited from tax exemptions and incentives, disbursing approximately ₹177 crore in incentives up to 2023. The policy targeted a 25% EV adoption rate among new vehicle registrations by 2024.
Court’s Intervention and Orders
The Delhi High Court, on September 3, 2025, ordered the government to expedite the disbursement process. A bench comprising Chief Justice Devendra Kumar Upadhyay and Justice Tushar Rao Gedela emphasized that procedural delays could not justify withholding payments, especially when funds were available. The court directed the Delhi Transport Department to set up a dedicated bank account for subsidy disbursal and assured that all eligible beneficiaries must receive their incentives without further delay.
The court's stern warning came during a public interest litigation filed by the Jan Seva Welfare Society, which highlighted the plight of many EV buyers awaiting their subsidies.
Steps towards Disbursement and Future Policy
Transport Minister Pankaj Singh confirmed that verification of all subsidy applications has commenced, and a new portal is being developed to facilitate smooth disbursal. The process aims to clear the backlog and restore trust among EV consumers, encouraging further adoption.
The government’s move to release pending subsidies aligns with its broader vision to make Delhi pollution-free and enhance EV adoption. As part of the ongoing efforts, the policy has been extended till 2026, and a new EV Policy 2.0 is being formulated with stricter targets, aiming for 27% EV share in vehicle registrations by 2027.
Impact of EV Adoption in Delhi
Delhi has seen remarkable progress in EV adoption since the policy’s inception. By mid-2025, over 1.60 lakh EVs were on the city's roads, with a steady increase of more than 62,000 vehicles in recent years. The city has also established over 2,450 public charging points, supporting the growing EV ecosystem. The initiative has positioned Delhi as a frontrunner in India’s electric mobility journey, comparable to global leaders like California and Paris.
The policy's success is evident not only in numbers but also in its vision to achieve cleaner air and reduce pollution. Incentives such as tax waivers, subsidies, and streamlined purchase processes have played pivotal roles in promoting EV ownership among Delhi residents.
Conclusion
The directive from the Delhi High Court marks a crucial milestone in the city's push towards sustainable transportation. The release of ₹140 crore in pending EV subsidies will provide relief to thousands of vehicle owners and serve as a catalyst for further EV adoption in Delhi. With the government now equipped to overcome procedural hurdles and a new policy framework in development, Delhi is poised to accelerate its journey to becoming an electric vehicle hub in India.