Electric Vehicles Policy 2020: Delhi | 10 Aug 2020

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.
    
    • Delhi experiences a public health emergency every winter due to the rise in air pollution, which has become a recurrent annual crisis.
    • During the Covid-19 induced lockdowns, the capital witnessed a drastic reduction in the PM10 and PM2.5 levels.
  • 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 31^st March 2023 and 100% by 31^st 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.

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