The International Road Federation (IRF) has formally urged the Delhi government to remove the price ceiling on incentives under the Delhi Electric Vehicle Policy. According to reports from PTI, IRF president emeritus KK Kapila wrote to Delhi Chief Minister Rekha Gupta on Thursday, advocating for the removal of the current ₹30 lakh ex-showroom price limit for electric vehicles to qualify for tax benefits. The IRF emphasized that all EVs, regardless of their price, play an equal role in reducing pollution and should be encouraged equally through incentives. As reported by PTI, Kapila stated that restricting incentives based on vehicle price undermines the broader objective of accelerating EV adoption and discourages adoption in higher-priced segments.
As reported by PTI, under the current Delhi Electric Vehicle Policy, electric vehicles with ex-showroom prices ₹30 lakh or below qualify for 100 per cent road tax and registration fee waiver. Vehicles priced above this cap receive no tax breaks, creating a clear price threshold for incentive eligibility. The IRF has suggested that the government extend EV incentives without any price ceiling so that all buyers choosing electric mobility are encouraged equally. According to PTI, Kapila noted that the existing eligibility criterion discourages adoption in higher-priced segments and urged the government to extend incentives to all electric vehicles, irrespective of cost.
According to the IRF statement reported by PTI, Kapila emphasized that restricting incentives to vehicles below a specified price limit may discourage the adoption of electric vehicles in several market segments. He argued that every electric vehicle on the road helps reduce air pollution, lowers carbon emissions, and supports the transition to clean and sustainable transportation. As reported by PTI, Kapila stated that these environmental benefits are not linked to the vehicle's price, meaning that removing the price cap would encourage wider adoption of electric vehicles across all segments. He described removing the price ceiling as a necessary step to reinforce Delhi's leadership in green mobility and support the government's objective of creating a cleaner and healthier urban environment.
Union Power Minister Manohar Lal announced that India's peak power demand is projected to reach 300 GW next year, driven by rapid growth in data centres, artificial intelligence, and electric vehicles. Speaking at the 12th India Energy Storage Week 2026 in New Delhi, Lal said India's peak power demand has already reached an estimated 271 GW and could rise further this year. The minister highlighted that India's available generation capacity has increased to 284 GW, enabling it to meet rising electricity demand across sectors. This growing power demand provides additional context for the IRF's recommendation to remove EV price caps, as increased electrification across sectors will require expanded charging infrastructure and broader EV adoption to meet future energy needs.
