The Delhi government will begin clearing pending electric vehicle (EV) subsidy dues amounting to approximately Rs. 1.40 billion (US$ 15.88 million), according to officials cited by media sources on 15th September.

Transport Minister Pankaj Singh stated that the department will verify all subsidy applications to address the backlog that has accumulated over the past two years.

An official said that the process of identifying eligible beneficiaries has started. A portal is also being developed for processing dues.

The move follows a Delhi High Court directive issued on 3 September, instructing the government to release subsidies promised under the 2020 Delhi EV Policy.

The court noted that procedural hurdles could not be used to delay payments and that the policy does not specify a timeline for disbursal.

Delays

Officials said the delays began last year after the arrest of former Chief Minister Arvind Kejriwal in the excise policy case, which disrupted cabinet meetings and delayed the policy's extension.

Since the launch of the policy in August 2020, over 219,000 vehicles have received tax exemptions, including 109,000 two-wheelers and 83,724 three-wheelers. The government had disbursed Rs. 1.77 billion in incentives up to 2023.

The EV policy, which lapsed in August 2023, was extended last month until 31st March 2026. The draft of a new EV Policy 2.0 is undergoing public consultation. A committee chaired by Minister Ashish Sood has been set up to oversee its formulation.