MSTC Shares Surge 6.55% as Delhi EV Policy Promises Massive Scrappage Incentives

MSTC Shares Surge 6.55% as Delhi EV Policy Promises Massive Scrappage Incentives​

MSTC shares skyrocketed, settling at ₹689.80 per share on the NSE after registering a significant gain of 6.55 percent on Monday. This sharp rally followed the approval of the comprehensive Delhi EV Policy 2026 by the Delhi government. The policy introduces robust scrappage incentives and purchase subsidies designed to rapidly accelerate the transition towards electric mobility in the national capital.

The PSU, which is a mini Ratna category-I entity under the Ministry of Steel, benefits directly from this regulatory push. MSTC’s operational scope includes handling scraps, old plant and machinery, surplus stores, and real estate, making it well positioned to capitalize on increased industrial EV adoption.

Details of Delhi EV Policy 2026 Incentives​

The new policy, which is scheduled to remain effective until March 31, 2030, focuses intently on incentives that encourage the replacement of older, polluting vehicles with zero-emission alternatives. Under the provisions for two-wheeler owners, who are replacing BS-IV or older models, a dedicated scrappage incentive of ₹10,000 will be provided.

The policy offers tiered incentives across different vehicle categories. For three-wheeler owners switching to electric vehicles, an additional benefit of ₹25,000 is available. Meanwhile, those who own N1 commercial trucks are eligible for up to ₹50,000 in scrappage incentives.

Incentives for Four-Wheeler and EV Adoption​

Owners of BS-IV or older four-wheelers transitioning to electric cars will receive a substantial scrappage incentive amounting to ₹1 lakh. These lucrative incentives are designed to be additional to the purchase subsidies announced under the policy framework.

Furthermore, the Delhi government has mandated a 100 percent exemption from road tax and registration fees for all pure electric vehicles. This exemption is available for four-wheelers with an ex-showroom price up to ₹30 lakh.

Policy Targets and Market Performance of MSTC​

The Delhi EV Policy 2026 outlines ambitious targets aimed at improving air quality and reducing vehicular emissions. The plan includes the installation of 32,000 public EV charging points across the territory. It also establishes phased mandates for electric commercial vehicles, two-wheelers, and institutional fleets.

MSTC's stock performance has seen sustained momentum in recent weeks. According to BSE Analytics data, MSTC shares have gained a cumulative total of 56.63 percent over the past one month, driven by increased market confidence in its strategic alignment with the state government’s green initiative.