'Convert old cars into EVs, don't scrap them': Delhi govt plans Rs 50,000 subsidy for first 1,000 cars

• Delhi plans Rs 50,000 subsidy for retrofitting old petrol, diesel cars to EVs
• Draft EV Policy 2.0 aims to boost EV adoption and cut air pollution
• R&D fund for battery tech to rise from Rs 5 crore to Rs 100 crore

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The Delhi government is crafting a significant financial incentive to encourage the retrofitting of old petrol and diesel cars into electric vehicles (EVs), as part of its broader strategy to combat air pollution and accelerate the adoption of cleaner transport.

According to officials familiar with the draft EV Policy 2.0, the move aims to provide owners of ageing, restricted vehicles a viable alternative to scrapping or selling them outside the capital.

Under the proposal being considered by the Transport department, a subsidy of Rs 50,000 would be offered for the first 1,000 old vehicles converted. A final decision awaits Cabinet approval, The Indian Express cited officials as saying.

A senior official explained that the high and variable cost of retrofit kits for different models currently discourages many from the process. The proposed incentives, the government believes, are therefore designed to enable a larger number of citizens to reuse their existing vehicles rather than sending them to the scrapyard.

The initiative is seen as particularly advantageous for owners of high-end vehicles. Officials noted that individuals who invested substantial sums in luxury cars, such as Mercedes or BMW models, are often reluctant to scrap them for minimal returns. The incentives, an official reportedly stated, are intended to promote and facilitate the reuse of these costly vehicles.

This is not the first time retrofitting has been explored. The Aam Aadmi Party government previously attempted to streamline the process but faced hurdles, primarily due to the high cost of retrofit kits, which vary by model. Retrofitting involves replacing a vehicle’s internal combustion engine with a battery-operated electric kit.

The push comes against the backdrop of existing bans on diesel vehicles older than 10 years and petrol vehicles older than 15 years from plying on Delhi’s roads, a rule enforced by the National Green Tribunal and Supreme Court to curb vehicular pollution. Owners of such vehicles currently face fines or impoundment, with the option to scrap at authorised facilities or obtain a No Objection Certificate to sell in other states.

The draft EV Policy 2.0, as reported by The Indian Express, outlines several other ambitious targets and incentives. A key proposal is a massive increase in the Research and Development fund, from Rs 5 crore to Rs 100 crore, specifically earmarked for emerging technologies in battery cells and chargers.

Further, the government aims to dramatically increase the number of electric two-wheelers in Delhi from 5 lakh to 12 lakh in the coming years. Officials project that with this enhanced support, the capital could achieve 70% EV penetration in the new two-wheeler segment within three years.

Additional recommendations include raising incentives for battery-swapping stations (including batteries) to Rs 6 lakh from Rs 1.2 lakh and introducing a safety star rating system for e-rickshaws and e-carts, which, while fully electric, largely still rely on lead-acid batteries.

Anil Chikkara, a former Transport department official, offered a measured perspective on retrofitting, noting its potential utility. “Converting old vehicles into electric ones will be beneficial for people who use their vehicles for limited purpose and are not very dependent on them. Also, there are different cars and models. It depends on how viable the kits are and whether they come with or without a gearbox,” he was quoted as saying by the Indian Express.

The policy also contemplates additional purchase incentives for buyers who can provide a scrapping certificate for their end-of-life vehicle from an authorised facility.