Chandigarh’s Enhanced EV Subsidy Plan Still Awaiting MHA Approval After 9 Months

Chandigarh’s push toward sustainable and electric mobility has slowed due to delays in administrative approvals. Nearly nine months after the Union Territory administration finalized an enhanced electric vehicle (EV) subsidy plan, the proposal is still awaiting approval from the Ministry of Home Affairs (MHA). This delay has put the rollout of revised incentives on hold, creating uncertainty for potential EV buyers and industry stakeholders.

What the Enhanced EV Subsidy Plan Promised

The revised EV subsidy plan was designed to accelerate electric vehicle adoption across Chandigarh. It proposed higher financial incentives for electric cars and two-wheelers compared to the existing policy. The plan also aimed to reduce the overall cost of EV ownership by including additional benefits such as insurance support and targeted incentives for specific buyer groups, including women.

These enhancements were expected to revive interest in EVs, especially as the earlier subsidy scheme had begun to lose momentum due to limited financial support and rising vehicle costs.

Why the Approval Delay Matters

As a Union Territory, Chandigarh requires central government clearance for major policy decisions involving financial commitments. Without approval from the Ministry of Home Affairs, the enhanced EV subsidy plan cannot be officially notified or implemented.

The prolonged delay has impacted consumer confidence, as many buyers postponed EV purchases in anticipation of higher incentives. Dealers and manufacturers have also felt the effect, with slower demand growth compared to expectations. The uncertainty risks weakening the city’s broader electric mobility goals.

Chandigarh’s EV Vision Faces a Slowdown

Chandigarh has taken several steps to support electric mobility, including the introduction of a digital EV subsidy portal and efforts to expand charging infrastructure. However, EV adoption in the city remains modest, making financial incentives a critical driver for growth.

Without the enhanced subsidy in place, the pace of EV adoption could fall short of targets, affecting environmental goals related to emission reduction and clean urban transport.

Conclusion

Chandigarh’s enhanced EV subsidy plan holds strong potential to boost electric vehicle adoption and reinforce the city’s commitment to sustainable transport. However, nine months of pending approval from the Ministry of Home Affairs have stalled progress. Timely clearance is now essential to restore momentum, rebuild buyer confidence, and ensure that Chandigarh remains on track in its transition toward a cleaner, electric mobility future.