Delhi’s Electric Vehicle Policy, 2020 

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Delhi Electric Vehicles Policy has been notified recently. It has been notified for a period of three years, following which it can be renewed in the present form or after suitable amendments. It has set an ambitious target of ensuring that by 2024, EVs account for 25% of all new vehicle registrations in the national capital. 

Policy roadmap  

  • The policy is incentive-driven, which the government believes will encourage people to buy new EVs, scrap cars running on petrol and diesel. 
  • It has provisions for low-interest loans for battery-run commercial vehicles like buses and trucks. 
  • The policy lays a particular emphasis in the category of two-wheelers, autos, and goods carriers and will, for the first time, allow ride-hailing services such as Ola and Uber and last mile delivery platforms such as Zomato and Swiggy to operate battery-driven bikes. 
  • “All two-wheelers engaged in last-mile deliveries (e.g., food delivery, e-commerce logistics etc.) will be expected to transition 50% of their fleet to electric by March 2023, and 100% of their fleet by March 2025,” the policy states. 
  • Currently, two-thirds of new vehicle registrations in Delhi comprise two-wheelers. From 2020, the government has also committed to ensure that 50 per cent of its new public bus purchases are pure electric buses. 

Incentives  

  • In case of bikes, a purchase incentive of Rs. 5,000 per kWh of battery capacity shall be provided per vehicle to the registered owner, subject to maximum incentive of Rs 30,000 per bike. 
  • Up to Rs 5000 will be granted for scrapping old petrol and diesel-run bikes and purchase EVs. 
  • Those buying e-autos will get Rs 30,000 subsidy and Rs 7500 additional subsidy for scrapping old CNG-run autos. There will be no cap on the number of e-autos unlike CNG-run ones which cannot exceed 1 lakh in the city. 
  • Purchase of e-rickshaws will also come with a Rs 30,000 inventive. Similar incentives will be granted to the purchase of the first 10,000 battery-driven goods carriers. 
  • In case of four-wheelers, the first 1000 purchases of e-cars stand to get subsidies of up to Rs 1.5 lakh per vehicle. And lastly, the road tax and registration fees shall be waived for all EVs, says the policy. 

Charing infrastructure  

  • The policy recommends changes in building bye-laws so that all new homes and workplaces are ‘EV ready’ with 20% of all vehicle holding capacity/parking equipped with charging points. 
  • The purchase of charging points will also be incentivised to the tune of Rs 6,000 per charging point for the first 30,000 such points. The existing building owners and RWAs will be “encouraged” to follow suit through similar incentives as well. 
  • The policy lists as its key objective the creation of public charging facilities within three km travel from anywhere in Delhi by inviting companies to set up charging and battery swapping stations at “bare minimum lease rentals” and full reimbursement for purchases of swappable batteries by them. 

Funding  

  • The policy refers to the ‘feebate concept’, which refers to the concept under which inefficient polluting vehicles incur a surcharge, while efficient ones receive a rebate. Accordingly, it seeks to create an EV fund made up of pollution cess on, additional road tax on petrol and diesel vehicles, “especially luxury cars”, congestion fee on rides taken using cab aggregators (except those running on batteries). 
  • Currently, a Rs 25 paise per litre cess is levied on sale of diesel in the city, which makes up the air ambience fund. Every month, 50 per cent of the amount collected in that fund will be transferred to the EV fund. 
  • And if the government still falls short of money, the Supreme Court’s assistance will be sought in using the Environment Compensation Charge fund, made up of tax imposed on commercial vehicles entering Delhi. 
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