Delhi Govt to Clear ₹140 Cr EV Subsidy Dues: The Delhi government has announced that it will clear around ₹140 crore worth of pending electric vehicle (EV) subsidy dues, following strong criticism from the Delhi High Court over prolonged delays. This move comes as a major relief for EV buyers in the capital, many of whom have been waiting for their promised financial incentives for nearly two years.
High Court’s Intervention
On September 3, 2025, the Delhi High Court directed the government to expedite the release of pending subsidies. A division bench observed that procedural delays could not be used as an excuse to hold back payments. The Court noted that while the 2020 Delhi Electric Vehicle Policy did not specify a fixed timeline for disbursal, the absence of such a clause should not delay benefits to consumers.
The Court also ordered the Transport Department to set up a dedicated bank account for subsidy payments to ensure that funds are released “expeditiously” to eligible beneficiaries. This direction was issued in response to a public interest litigation (PIL) filed by the Jan Seva Welfare Society, which highlighted the plight of EV buyers who had not received their subsidies despite repeated government assurances.
Reasons Behind the Delay
The backlog of subsidies, totaling about ₹140 crore, accumulated due to a combination of procedural hurdles and administrative challenges:
- Procedural Delays: Despite the availability of funds, subsidies were stalled because of the lack of a clear timeline in the 2020 EV Policy.
- Absence of a Dedicated Account: Without a separate account for subsidy disbursal, payments were stuck in bureaucratic red tape.
- Administrative Hurdles: Officials pointed out that the arrest of former Chief Minister Arvind Kejriwal in the excise policy case disrupted cabinet meetings. As a result, the EV policy could not be extended on time.
- Policy Gaps: The expiration of the original EV policy in August 2023 and delays in introducing the upcoming EV Policy 2.0 created further uncertainty.
These factors together eroded consumer trust and slowed down Delhi’s ambitious clean mobility drive.
Government’s Response
In response to the Court’s criticism, Transport Minister Pankaj Singh confirmed that the Transport Department will begin verifying all pending subsidy applications immediately. The government is also working on launching an online portal to streamline payments and prevent future backlogs.
Officials emphasized that clearing the dues would be a top priority and that necessary steps were being taken to ensure timely disbursal. By setting up a dedicated bank account and addressing procedural flaws, the government hopes to restore public confidence in its EV policies.
Broader Context – Delhi’s EV Push
Launched in 2020, the Delhi EV Policy offered financial incentives to encourage EV adoption, including subsidies of ₹5,000 per kWh for electric two-wheelers (up to ₹30,000), and incentives for e-rickshaws and light commercial vehicles. Originally set to expire in 2023, the policy has been extended multiple times and is currently valid until March 31, 2026, while a new EV Policy 2.0 is being drafted.
Experts believe that clearing the pending dues will not only bring relief to EV buyers but also boost adoption rates by restoring faith in government schemes. This step is crucial for Delhi’s long-term vision of reducing pollution and promoting sustainable urban transport.
Conclusion
The High Court’s firm intervention has forced the Delhi government to act on a long-pending issue that was slowing down EV adoption in the capital. With the announcement to clear ₹140 crore in dues, set up a dedicated bank account, and streamline verification, the government is attempting to fix systemic flaws. While challenges remain, this step could prove pivotal in regaining public trust and accelerating Delhi’s transition to greener mobility.
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