Delhi Government Rolls Out Forward Looking Electric Vehicle Policy

The Delhi government has prepared a new policy to make Delhi the capital of electric vehicles. According to the new EV policy, 25% of the new vehicles to be registered from the year 2023 will be e-vehicles. There is also a provision for waiving road tax, registration fees in all categories, along with increased subsidy on purchasing of e-vehicles. The government also plans to develop charging station at every 3 Km and also aims to provide subsidy to private players to develop the charging infrastructure. The Government also sets the target of running 50% e-buses in Delhi. The policy will be valid for three years from the date of notification.

“Pollution levels are very high in Delhi and vehicles contribute a lot to that. We had circulated the first draft in November 2018. After several rounds of discussions, this policy has been made. By 2024, we want 25% of the vehicles to be electric vehicles. The aim is to reduce air pollution and create large scale jobs. The emphasis is on two-wheelers and public transport because they operate more," Chief Minister Arvind Kejriwal said at a news conference after a meeting of the state cabinet.

Incentives For e-Bikes

Under the new policy, The Delhi Government is providing the incentive of Rs 5,000 Per KWh. It means, if you buy 2 Wheeler with a battery capacity of 2 KWh, you will get a subsidy of Rs 10,000 as compared to Rs 5,500 currently offered by Delhi Pollution Control Committee. Existing ICE two-wheeler owners will get a scrapping and de-registration incentive of up to Rs 15,000 per vehicle for scrapping two-wheelers that are not BSIV certified. The Government also aims to run the e-two wheelers taxis for the last mile connectivity.

Incentives For Electric Cars

The new EV policy offers an incentive of Rs 10,000 per kWh for the first thousand cars with a limit Cap of Rs 1.5 lakh per vehicle. All the leased and hired cars for Government of National Capital Territory of Delhi officers will transition to electric within a year from the date of notification of the policy.

Incentive For Electric 3 Wheelers and Carriers

After the implementation of the new EV policy, permits for e-auto will not be required. An open permit system will start by Government to approved e-autos, with no limits on the number of Auto Rickshaw Permits (‘e-auto Permits’) to be issued. With license and badge, anyone can buy e-auto and run it in Delhi. For e-Auto and Carriers, the incentive of Rs 30,000 per vehicle and loans at cheaper rates will also be available. Road tax, registration charges, MCD one-time parking fee and Auto Rickshaw Permit fees will be waived for e-autos.

Incentive For Charging Infrastructure

Since the Government is stressing a lot on EV, Its infrastructure also becomes an important factor. Keeping this in mind, the Government is offering an incentive of Rs 30,000 for setting up the first ten thousand residential and non-residential charging infrastructure. According to the new EV policy, the new home and workplace parking should reserve 20 per cent parking to EVs. The Delhi government will also 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.

How Industry Reacts To The New EV Policy

Goldie Srivastava, CEO and co-founder, SmartE

“SmartE welcomes the much-awaited EV Policy approved by the Delhi Government and is among the most forward-looking policies in the country today. The  policy will encourage wider adoption of electric three-wheelers in the city. Waiver of road tax, registration fee as well as attractive provisions for energy operators will give a huge fillip to organized players like SmartE to further transform the last mile connectivity paradigm for the city of Delhi.” 

Mr Rajesh Menon, Director General, Society of Indian Automobile Manufacturers (SIAM)

“We would like to sincerely congratulate the Delhi Govt. 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).

Mr. Sohinder Gill, CEO, Hero Electric and Director General, SMEV

“We are delighted to see the Delhi government take the lead in making EV’s more appealing to customers. 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”