Everything You Need to Know About Delhi EV Policy

Delhi recently implemented it’s long due EV Policy. It came a bit late, but I am impressed with it. Delhi govt wants Delhi to be EV Capital of India. Provisions/incentives in the policy might surely lead to this. In this article, we will take a look at all the points & my view on them.

  • Delhi Govt wants 25% of new vehicles to be EV by 2024.

  • The policy will remain valid for 3 years from the date of the issue i.e. 07.08.2020. And the incentives are in addition to the Fame 2 incentive & tax rebate by Center Govt. , which is really great.

  • Road Tax & Registration is waived off for all EVs during the period of this policy. This is kind of an indirect incentive. Road tax in Delhi on ICE varies from 4-12.5% on cars. This exemption will bring down the on-road cost of an EV.

Electric 2 Wheelers

  • Purchase incentive of INR 5000/kwh battery & max of INR 30,000 / vehicle. This will significantly bring down the 2w Ev cost. Most new EV 2w are having nearly 3kwh battery, that means 15k off!

  • EV Owners to get incentives up to INR 5000 on scrapping their ICE 2w. This is something new. Apart from getting EVs on road, we need to get those old polluting ICE off the road also. And this incentive will motivate people to do away with their petrol guzzlers.

  • Delivery service providers like food delivery, e-commerce logistics, couriers to shift to EVs. Govt expects 50% of the fleet to be electric by 31st March 2023 & 100% fleet to be electric by 31st March 2025. This move surprised me a bit. The timelines are so close. I would love to see it become a reality. Delivery service providers might be hesitant a bit, but they should know that the savings on fuel only makes it worth switching.

Electric Auto Rickshaws

  • Govt aims to incentivize the purchase of new E Autos instead of ICE ones and also aims to replace the earlier ones. Govt favors no cap on E Autos, but the matter is pending in Supreme Court. I hope SC also puts no cap on E Autos while banning the new ICE Auto sale. 3w make a large amount of traffic and they should be mandated to be Electric only. I would have been happier if govt aimed for a deadline to have autos shift to Electric. Let's hope so in a new policy after these 3 years. It's just a start.

  • Purchase incentive of INR 30000/e auto. And interest subvention of 5% on loan for e auto. This again will help auto owners to switch to Electric as in addition, they realize savings on fuel also.

  • ICE Auto scrapping incentive up to INR 7500.

  • Current Auto Rickshaw permits can be exchanged for an E-Rickshaw permit at no additional cost.

I think govt has put a good amount of effort hoping new 3w to be Electric and make existing ones to switch also.

E Buses

No incentives are stated in this since most bus purchases are by govt.

However, govt commits to provide appropriate incentives and necessary support to ensure that E Buses constitutes at least 50% of all new buses(> 15 passenger capacity) for city fleet. Also induction of 1000 E Buses by 2020.

I am happy with this. Buses travel an average of 220km a day in Delhi. A bus with ~300km range would be enough. They can be charged overnight at the depot. Electrifying public transport is a must.

3 Wheeled Goods Carrier and Goods Carrier having gross weight less than 3.5T

  • Purchase incentive of INR 30000 to first 10000 e good carrier. Interest subvention of 5% on loan.

  • Scrap incentives up to INR 7500.

  • E Goods Carrier will be exempted from the prohibition on plying and idle parking charges. Another indirect incentive.

Here again, govt aims to electrify new light goods carriers as these are possible for now. Work is yet to be done on a heavy good carrier.

Electric Cars

  • Purchase incentive of INR 10000/kwh battery capacity, max INR 1.5L to first 1000 e-cars after issuance of this policy.

  • All leased/hired car used for a commute of Delhi govt officers to be Electric in the next 12 months. This is amazing. I hope all new vehicle purchases by govt is also Electric.

Charging Infrastructure

  • Change in building bye-laws to be made to make all new home and workplace to have 20% EV ready parking. This is something that is very important. It has been seen that some societies prohibit EV owners to install chargers in the parking. It would have been great if this was also enforced for current buildings and workplaces.

  • 100% grant on purchase of private charging equipment up to INR 6000 to the first 30000 charging point.

  • Govt aims a public charger in 3km travel anywhere in Delhi. This if & when happens will give people enough confidence that they can buy & charge an EV without any hassle. However, home charging is the way to go.

  • Capital subsidies to select Energy Operators on installing charging infra.

Other Steps

  • Pollution Cess of 25 paise is already levied on diesel which goes to Air Ambience Fund. 50% of which will be transferred to State EV Fund on a monthly basis.

  • Additional Road Tax(soon to be notified) to be levied on Diesel and Petrol cars especially luxury cars. An additional tax collected to be allocated to State EV Fund. I am happy with this step. Owning an ICE is going to be costly. Delhi can't take any more of the pollution. This is feebate, which is going to happen everywhere in the country in the coming times.

  • An appropriate congestion fee on all trips originating or terminating in Delhi taken using ICE ride-hailing. This tax to be waived off for EVs. And tax to be allocated to State EV Fund. Another reason that would push ride-hailing services to shift to Electric.

Overall this EV policy is electrifying.

Covering every category of vehicle with appropriate incentives. Using additional tax collected to fund EVs is a great step. I hope this will give a significant boost to EVs and we will see EVs in a good amount on Delhi roads in the coming years. It’s time to get rid of fossils.

Nikhil Chaudhary

Tesla Club India & N-Squared Hub

Also read - Short History of Electric Vehicles.

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