Delhi gets new electric vehicle policy; Industry hails move

In order to curb rising pollution, the capital city of New Delhi is serious about getting in more electric vehicles to replace IC engine powered vehicles. Announcing its EV policy, the Delhi government aims to register at least 5 lakh electric vehicles by 2024. The policy was announced by Delhi Chief Minister Arvind Kejriwal.

Kejriwal said that the electric vehicles will mostly include two-wheelers and commercial vehicles. He said the Delhi government's aim is to register at least 25 per cent electric vehicles by 2024. The EV policy was passed by the Delhi cabinet on December 23, 2019.

The Delhi government is hoping to induct 35,000 electric two, three, four wheelers and buses along with 1,000 electric vehicles for last mile deliveries and 250 public charging and battery swapping stations. The government also waived road tax and registration fees for all battery electric vehicles for the next three years. Under this policy, the Delhi government will offer purchase incentive of Rs 5,000 per kWh of battery capacity compared to Rs 5,500 currently offered by Delhi Pollution Control Committee. Besides that, there will be a scrapping incentive of up to Rs 5,000, subject to evidence of matching contribution from the manufacturer or dealer.

Last-mile delivery companies like food delivery and e-commerce logistics providers are expected to shift to 50 per cent of their fleet to electric by March 2023 and 100 per cent by March 2025. Moreover, according to the policy, E-rickshaws and carriers will get an incentive of Rs 30,000 per vehicle and interest subvention of 5 per cent on loans.

Electric four wheelers will get a purchase incentive of Rs 10,000 per kWh of battery capacity for first 1,000 cars subject to a cap of Rs 1,50,000 per vehicle. All the leased cars used for commute of Delhi government officers will be gradually shifted to EVs within next 12 months.

The policy has also mandated that new home and workplace parking should reserve 20 per cent parking to EVs. The Delhi government will provide 100 per cent subsidy for the purchase of charging equipment costing up to Rs 6,000 per unit for the first 30,000 charging points at homes and workplaces.

EV Industry hails policy

Sohinder Gill, CEO, Hero Electric and Director General, SMEV, noted that the additional incentives being provided by the Delhi government apart from the subsidy offered by the central government would definitely encourage more people to make the switch to clean mobility.

“… On behalf of Hero Electric, I am thankful that the government considered most of our recommendations including the conversion of commercial ICE vehicles into electric, E-bike taxi and more such alternatives as they are the key drivers in taking the e-mobility momentum forward. These additional incentives apart from the subsidy offered by the central government would definitely encourage more people to make the switch to clean mobility. With the introduction of this policy, we are certain that Delhi will lead by example and am hopeful more states will also emulate such measures to give a boost to the industry and help achieve the country its ambitious goals of getting India electrified. If a similar policy is adopted at a national level, we are confident that the electric mobility revolution at a mass scale will kick-start in the country”, he said.

Rajesh Menon, Director General, Society of Indian Automobile Manufacturers (SIAM) congratulated the Delhi government for announcing a very comprehensive EV Policy which should encourage consumers to adopt EVs in the State of Delhi. “Some of the welcome announcements in the policy include measures which would make electric vehicles affordable and acceptable. These include purchase incentives, interest subvention, scrappage incentive, waiver on road tax, waiver on registration and parking fees and measures to push charging infrastructure. These are in line with the recommendations of the Society of Indian Automobile Manufacturers (SIAM),” he pointed out.

Ayush Lohia, CEO Lohia Auto Industries said it is a befitting move by the Government of Delhi. “This will help in faster adoption of e-mobility and help in curbing pollution levels that we have seen has crossed 400 AQI according to CPCB which is considered as hazardous in this month itself. Also this new policy will allow ride-hailing service providers to operate electric two-wheeler taxis in Delhi which is a big step-up for last-mile connectivity and job creation. The key criteria for this to succeed would be to build an appropriate infrastructure especially towards charging and swapping stations”, he added.