Delhi Notifies EV Policy 2020
On December 23, 2019 the Delhi Government approved the Delhi Electric Vehicles Policy. On August 7, 2020, the Transport Department of the Government of Delhi has notified the Delhi EV Policy 2020 (Policy). The EV Policy has been notified and is currently in effect. The EV Policy is designed to give impetus to the adoption of electric vehicles (EVs) in Delhi, which despite the Government's earlier efforts has, not gained traction. The main objective of the Policy is to accelerate the pace of EV adoption across vehicle segments, especially in the mass category of two-wheelers, public/shared transport vehicles, and goods carriers so that EVs contribute to 25% of all vehicle registrations by 2024. The Policy will remain valid for 3 years from the date of issue. The Government of the National Capital Territory of Delhi (GNCTD) is to be the nodal agency and a State EV Board is to be constituted as the apex body for the implementation of the Policy.
What are the key features of, and incentives offered under, the Policy?
The main verticals for the implementation of the Policy are financial incentives; waiver of road tax and registration fees; establishment of a wide network of charging stations and swappable battery stations; constitution of the State Electric Vehicle Board, establishment of a dedicated EV cell, and developing an intensive public outreach program focused on creating the awareness about the benefits of EVs and key elements of the policy. The fiscal incentives provided under the Policy are in addition to the demand incentives under the FAME India Phase – II Scheme.
The key incentives offered are as follows:
Electric two wheelers:
- Eligibility criteria: The incentives are available only to electric two-wheelers with advanced batteries (vehicles with advanced batteries are those models that are certified as so by the Automotive Research Institute of India) and are subject to a maximum incentive of INR 30,000 per vehicle. The criteria for eligibility have been set at a minimum top speed of 40 km/hr; minimum acceleration of 0.65 m/s2; maximum electric energy consumption not exceeding 7 kWh/100 km; and a comprehensive warranty of at least 3 years including the battery from the manufacturer. Two-wheeler original equipment manufacturers (OEMs) are to register their vehicles as per the aforementioned criteria with the Transport Department of GNCTD.
- An incentive of INR 5,000 per kWh of battery capacity is to be provided per vehicle to the registered owner, with a cap of INR 30,0000 per vehicle. Additionally, there is also an incentive offered for scrapping and de-registering an old Internal Combustion Engine (ICE) two-wheeler subject to evidence of matching contribution from the dealer or OEM and confirmation of scrapping and de-registration of the ICE vehicle.
- Delivery service providers are expected to convert 50% of their fleet operating in Delhi to EVs by March 31, 2023 and convert 100% of their fleet to EVs by March 31, 2025. The compliant delivery service providers would be eligible for financial support from the Delhi Finance Corporation.
- E-Autos with advanced batteries and which are eligible under Phase II of the FAME India Scheme will be eligible for incentives under the Policy. Swappable models, where battery is not sold with the vehicle are also to be included within the Policy.
- An open permit system is to be applicable for e-autos with permits to be granted on a first – come – first – serve basis. Individuals with a valid light motor driving license and a PSV badge are eligible to apply for the permit, subject to limit of one e-auto per individual. It is indicated that GNCTD is in the favor of not having any cap on permits issued to e-autos in Delhi, since they are zero emissions vehicles and can be very effective in ensuring clean, last-mile connectivity. Pending further orders from Supreme Court, the open permit system for e-autos would be subject to the cap on maximum number of autos in Delhi as fixed by the Supreme Court.
- An incentive of INR 30,000 per vehicle is to be provided to the registered owner of the e-auto. Additionally, interest subvention of 5% on loans and /hire purchase is to be offered. A scrapping incentive is also offered up to INR 7,500 per vehicle for scrapping and de-registering old ICE autos registered in Delhi, subject to evidence of matching contribution from the dealer or OEM and confirmation of scrapping and de-registration of the ICE two-wheeler. Auto permits that are linked to de-registered ICE autos can now be exchanged for e-auto permits for no extra cost.
E-rickshaws and E-carts:
- Individuals with a valid driving license may purchase one e-rickshaw/e-cart with incentives under the Policy. A purchase incentive of INR 30,000 per vehicle is to be provided. Interest subvention of 5% on loans and/or hire purchase schemes is to be provided to e-rickshaws and e-carts with advanced batteries.
- The GNCTD has committed to provide appropriate incentives with the objective of ensuring that pure electric buses constitute at least 50% of all new stage-carriage buses (stage-carriage buses are those public transport vehicles with 15 seats or more) procured for the city fleet including for last mile connectivity. The GNCTD intends to induct 1000 pure electric buses by 2020.
- 3-wheeled goods carriers and goods carriers having a gross vehicle weight that does not exceed 3.5 tonnes with advanced batteries and having satisfied the eligibility criteria under Phase II of the FAME India Scheme are to be eligible for the incentives offered under the Policy.
- A purchase incentive of INR 30,000 is to be offered to the first 10,000 e-carriers registered in Delhi after the issuance of the Policy along with interest subvention of 5% on loans and/or hire purchase schemes. E-carriers are to be completely exempted from the prohibition on plying and idle parking on certain roads in Delhi during specified timings as per Chapter VIII of the Central Motor Vehicles Rules, 1989. A scrapping incentive is also offered up to INR 7,500 per vehicle for scrapping and de-registering old ICE goods carriers registered in Delhi, subject to evidence of matching contribution from the dealer or OEM and confirmation of scrapping and de-registration.
Four– wheeled e-cars:
- A purchase incentive of INR 10,000 is to be offered per kWh of battery capacity for e-cars, subject to a cap of INR 1,50,000 per vehicle for the first 1000 e-cars registered in Delhi after the issuance of the Policy. Such e-cars would be required to have advanced batteries that satisfy the eligibility criteria under Phase II of the FAME India Scheme.
- GNCTD intends to transition its entire fleet to EVs. All leased/hired cars used for commute of GNCTD officers are to be transitioned to electric within a period of 12 months of the issuance of the Policy.
- Private charging: Building bye-laws are to be amended so as to ensure that all new homes and workplaces have 20% of all vehicle parking/holding capacity equipped with conduits and power supply infrastructure in place for EV chargers.
- The GNCTD is to provide a grant of 100% of the cost of purchasing charging equipment up to INR 6,000 per charging point to building owners for the first 30,000 charging points in existing residential and non-residential buildings.
- Customers of all Delhi distribution companies (DISCOM) may purchase a private charging point at a price that is net of the GNCTD grant as mentioned above, and the DISCOM is to install these charging points at the customers' premises as requested. The DISCOMs are to recover the installation charges through the electricity bill.
- Public Charging: The Policy aims to ensure that public charging facilities are accessible within 3 km of travel anywhere in Delhi. Locations are to be made available for setting up charging and battery swapping stations by energy operators at bare minimum lease rentals and are to be carved out from existing public parking zones and other identified locations such that they offer easy entry and exit. The energy operators are also allowed to put up these stations at any other locations with the requisite public access.
- The GNCTD is to provide a capital subsidy for the cost of the installation of the chargers to the selected energy operators. 100% of the net State GST, accrued to the GNCTD, is to be provided as reimbursement to the energy operators for purchase of advanced batteries to be used at swapping stations.
- Tariff rates: Favorable tariff rates are to be provided for public and private charging facilities in accordance with the Policy.
- The GNCTD is to fund most of the incentives described above through a 'feebate' concept – surcharges (fee-) such as pollution cess, parking surcharge, additional road tax, and congestion fee etc. are to be levied on inefficient and polluting vehicles and efficient vehicles are to receive rebates (-bate). The proceeds of the surcharges levied on polluting vehicles are to constitute a non-lapsable 'State EV fund'. The EV fund is to be the primary contributor towards funding the proposals in the Policy.
Other incentives and directions:
- The Policy provides for the recycling, replacement, and reuse of EV batteries once they have come to the end of their usable life.
- The Policy sets out objectives with respect to the creation of new jobs geared toward to the EV adoption in both the public and private sectors.
Our view: The Policy is comprehensive in its scope with emphasis on all aspects of EV infrastructure in Delhi. With the alarming levels of pollution present in Delhi, Government initiatives like the Policy are much needed in order to provide long-term sustainable solutions to pollution and emission levels. We hope that the implementation of EV policies continues to be a priority for States in India.
Originally published 11 September 2020
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