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Electric Vehicles Policy 2020: Delhi

  • 10 Aug 2020
  • 7 min read

Why in News

Recently, the Delhi government has notified the Electric Vehicles (EV) Policy 2020.

  • It lays the maximum emphasis on replacement of two-wheelers, public transport and shared vehicles and goods-carriers instead of private four-wheelers, with Electric Vehicles (EVs).

Key Points

  • Features:
    • It envisions the replacement of the existing auto rickshaws and State-run buses with e-autos and e-buses respectively. It will also ensure that delivery-based services operating in the city are powered by e-mobility.
    • It talks about increasing road tax for fuel-based vehicles, at least in the luxury segment and imposing in certain parts of the city a congestion fee that EVs will be exempt from.
    • It has a ‘scrapping incentive’ for those people who want to make the switch, allowing them to exchange an old fuel-based vehicle while purchasing a new EV, further reducing its cost.
    • The government will also offer low-interest rate loans to people interested in buying commercial EVs.
    • The policy also offers subsidies and road tax and registration fee waivers, for EVs bought in the capital.
      • At present, road tax ranges from 4% to 10% of the cost of the vehicle, while the registration fee could cost up to Rs. 3,000.
      • In addition, a subsidy of Rs. 5,000 per kWh of the battery capacity up to Rs. 30,000 will be given on the purchase of each EV.
      • For the first 1,000 e-cars or electric four-wheelers, a subsidy of Rs. 10,000 per kWh will be given, capped at Rs. 1,50,000 per vehicle.
    • These grants will be in addition to the subsidies offered by the Union government under its FAME India Phase 2 scheme, which offers similar incentives, especially on the purchase of electric two-wheelers and electric heavy passenger and goods vehicles.
    • A State EV fund will be set up, encompassing all the expenditure of the EV Policy. A State Electric Vehicle Board will be constituted for effective implementation of the policy and managing the fund. Besides, a dedicated EV Cell will also be constituted.
  • Aims:
    • To reduce air pollution and to kick-start the economy by spurring demand.
    • To address both problems of the high cost of purchase and the lack of sufficient charging infrastructure.
    • To register at least 5,00,000 EVs in Delhi in the next five years.
  • Delivery-based and Ride-hailing Services:
    • Ride-hailing service providers will be allowed to operate electric two-wheeler taxis subject to operating within the guidelines to be issued by the Transport Department.
    • It is expected that the incentives provided by the policy would encourage delivery service providers related to food delivery, e-commerce logistics providers and couriers to switch to using electric two-wheelers.
    • All delivery service providers shall be expected to convert 50% of their fleet operating in Delhi to electric by 31st March 2023 and 100% by 31st March 2025.
    • Delivery service providers who commit to achieving these targets will be eligible for financing support from the Delhi Finance Corporation.
  • Autorickshaws:
    • Incentives will be provided related to the purchase (Rs. 30,000 per vehicle) and use of new electric autos.
    • An open permit system will be put in place to provide permits on a first-come, first-served basis to those with valid light motor vehicle driving licences and a Public Service Vehicle badge.
      • The open permit system for e-autos shall be subject to the cap on the maximum number of autos if the Supreme Court will direct so in future.
    • There will be no cap on permits issued to e-autos in Delhi since they are zero-emission vehicles and can be very effective in ensuring clean, last-mile connectivity.
      • Currently, there is a cap on the number of CNG-run auto rickshaws, allowed to ply in the city.
  • Buses:
    • The policy envisions that half of the State-run buses to be procured over the next three years will be pure electric buses.
    • It will start doing so with the induction of 1,000 pure electric buses by 2020.

Central Government Initiatives on EVs

  • Government has set a target of EV making up 30% of new sales of cars and two-wheelers by 2030.
  • To build a sustainable EV ecosystem, initiatives like National Electric Mobility Mission Plan (NEMMP) and Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) have been launched.
    • NEMMP was launched in 2013 with an aim to achieve national fuel security by promoting hybrid and EVs in the country. There is an ambitious target to achieve 6-7 million sales of hybrid and EVs year on year from 2020 onwards.
    • FAME India was launched in 2015 with the objective to support hybrid/EV market development and manufacturing ecosystem. The scheme has 4 focus areas viz. technology development, demand creation, pilot projects and charging infrastructure.
  • Organisations like Bureau of Indian Standards (BIS), Department of Heavy Industry, Automotive Research Association of India are devising design and manufacturing standards of EVs, Electric Vehicle Supply Equipment (EVSEs) and charging infrastructure to smoothen the advent of in-house production of EVs.

Way Forward

  • Affordable, accessible, inclusive and safe mobility solutions are primary strategic levers for rapid economic development and improving ‘Ease of Living’.
  • Establishing the right coordination among three pillars of EV industry viz. urban planning, transportation and power sectors will assist in systematic adoption of EVs.
  • EVs are a rapidly growing sunrise sector which can give a push to ‘Make in India’.

Source: TH

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