Delhi govt set to release Rs 140 crore EV subsidy dues after HC rap

The court on September 3 ordered the Delhi government to take immediate steps to disburse the subsidies promised to customers for buying EVs and procedural hurdles cannot be used to delay payments

The Delhi government will soon begin clearing pending electric vehicle (EV) subsidy dues of about Rs 140 crore, officials said on Monday.

Transport Minister Pankaj Singh said the department will verify all subsidy applications to address the backlog, which has accumulated over two years.

According to an official, the government is also preparing a portal for clearing the pending dues.

The development comes in the aftermath of directions by the Delhi High Court.

The court on September 3 ordered the Delhi government to take immediate steps to disburse the subsidies promised to customers for buying electric vehicles and said procedural hurdles cannot be used as a pretext to delay payments.

A bench comprising Chief Justice Devendra Kumar Upadhayaya and Justice Tushar Rao Gedela noted that the government cannot hide behind the fact that the Delhi Electric Vehicles Policy of 2020 does not prescribe a timeline for disbursing the amount.

Officials stated that the order will be followed, and the department has already begun identifying the eligible beneficiaries.

A senior official said the delay was due to the arrest of former Delhi Chief Minister Arvind Kejriwal last year in an excise policy case. In his absence, the cabinet meeting was not held, and the EV policy could not be extended on time.

Since the launch of the EV Policy in August 2020 during the previous AAP government's tenure, over 2.19 lakh vehicles have availed tax exemptions, including 1.09 lakh two-wheelers and 83,724 three-wheelers. The government had disbursed Rs 177 crore in incentives till 2023.

The Delhi government had extended the current Electric Vehicle (EV) Policy until March 31, 2026, as the draft of the new policy will undergo public consultation, which is expected to take time.

The policy had lapsed in August 2023. It has been extended several times since then.

Last month, Delhi Chief Minister Rekha Gupta had announced the formation of a committee headed by Minister Ashish Sood for the formulation of Electric Vehicle Policy 2.0.