Chandigarh Discontinues Cash Subsidy Under EV Policy 2022

The Chandigarh administration has decided to discontinue the cash subsidy available under its Electric Vehicle (EV) Policy 2022. The amendment was notified on September 25 through the fourth amendment to the policy and has come into effect immediately. However, non-cash incentives, including exemptions on road tax and registration fees, will continue until further orders.

According to the administration, the cash subsidy will be discontinued after all pending applications received through the EV portal are processed. New EV buyers will not be eligible for cash incentives under the policy thereafter.

The administration has also revised the eligibility criteria for the incentives that continue. Consumers will now have to purchase their electric vehicles in Chandigarh and register them in the city to avail themselves of the benefits.

Earlier, permanent residents of Chandigarh could purchase an EV from anywhere in India and claim incentives as long as the vehicle was registered in Chandigarh. This provision has now been removed.

Despite the discontinuation of cash subsidies, several non-cash benefits will continue. These include exemption from road tax and registration fees for eligible EVs, along with green number plates for electric vehicles registered in Chandigarh. The policy will also continue to provide free public parking for electric vehicles across the city.

The decision followed a review of the EV Policy by the UT Electric Vehicle Advisory Committee, chaired by the Chief Secretary, on August 21. Administrator Gulab Chand Kataria subsequently approved the proposed amendments.

The cash subsidy for electric cars had already become effectively unavailable after the quota of 2,000 privately owned electric cars was exhausted. In May 2025, the administration announced that new buyers would no longer receive the subsidy of up to ₹1.5 lakh available for this category.

Under the original EV Policy, the first 2,000 privately owned electric cars were eligible for a subsidy of ₹5,000 per kWh of battery capacity, capped at ₹1.50 lakh per vehicle. Electric two-wheelers were eligible for ₹5,000 per kWh, capped at ₹30,000, while e-cycle buyers could receive 25% of the vehicle cost, capped at ₹4,000.

Chandigarh EV Policy was introduced in September 2022 with the objective of developing the city as a “Model EV City”. The policy remains in force until September 19, 2027.