Policy tweak may raise cost of owning non-EVs in Delhi

TRANSPORT DEPT OFFICIALS SAID THE STATE GOVT MAY PROPOSE A TAX OF 1-2% ON NEW CNG AND PETROL VEHICLES IN THE CAPITAL

- Snehil Sinha

NEW DELHI: The Delhi government has proposed a significant tweak to its existing electric vehicle (EV) policy, which may lead to an increase in the cost of petrol and CNG vehicles, people aware of the plan said on Wednesday.

The policy tweak, the people said, will lead to the extending of an existing "green cess"—currently applicable only for diesel vehicles—to all internal combustion engine (ICE) vehicles, thereby increasing their cost. This, they said, is being proposed in order to disincentive the sale of petrol and CNG vehicles in the Capital.

Another option that is being explored is hiking the cost of petrol and CNG in the city, they said.

Delhi's EV Policy 2020—which charges a cess of 1% on diesel vehicles—expired in August 2023, and has been extended ever since.

Transport department officials said that the state is likely to introduce a revised policy within a month, in which it proposes a tax of 1-2% on new petrol and CNG vehicles in the Capital, along with subsidies and interest subvention schemes for EVs.

A senior transport official said the cabinet will take a final call on approving the increased cess.