Experts welcome Delhi government’s electric vehicle policy

The Delhi government August 7, 2020, notified the new Electric Vehicle Policy under which it aims to make a quarter of all new vehicle registrations battery-operated by 2024.

Experts welcomed the move. “It is commendable that the much-awaited notification has happened despite the ongoing novel coronavirus disease (COVID-19) crisis and economic slowdown. In fact, this policy is being seen as a stimulus strategy to boost jobs and economy,” said Anumita Roychowdhury, executive director-research and advocacy of Delhi-based think tank, Centre for Science and Environment (CSE).

The proposed 25 per cent transformation of Delhi’s new vehicle market could catalyse electric vehicle production and bring more product diversity, said CSE experts. 

According to the VAHAN database of the Ministry of Road Transport and Highways, electric vehicles comprised only 3.2 per cent of the new vehicles registered in Delhi in 2019-20. 

The intervention is critical to cushion the impact of the COVID-19 lockdown on the overall vehicle market, especially the electric vehicle market, said experts. 

While the overall vehicle sales nosedived during the lockdown period, that of electric vehicles plummeted even lower, according to CSE’s analysis of the VAHAN database.

The electric vehicle registration dropped by 93.4 per cent between March and April 2020.

Some key highlights of the policy are:

• A purchase incentive of Rs 5,000 per kilowatt / hour of battery capacity (advanced battery), maximum incentive of Rs 30,000 per vehicle for two-wheelers.
• A purchase incentive of Rs 30,000 per vehicle (advanced battery) for e-autos.
• A purchase incentive of Rs 30,000 per vehicle for purchase of one e-rickshaw and e-cart. Additionally, interest subsidy of 5 per cent on loans on vehicles with advanced battery.
• Conversion of 50 per cent of all new stage carriage buses (all public transport vehicles with 15 seats or more) by 2022.
• A purchase incentive of Rs 10,000 per kilowatt / hour of battery capacity (advanced battery), and maximum incentive of Rs 150,000 per vehicle to the first 1,000 e-four wheelers.
• Complete removal of road tax and registration fee for all battery electric vehicles.

Delhi Chief Minister Arvind Kejriwal said: “The Electric Vehicle Policy is the country's most progressive policy and we hope that 5 lakh new electric vehicles will be registered in the next five years. An 'EV (Electric Vehicle) Cell' will be established to implement the policy,” he said.

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