DELHI ELECTRIC VEHICLE POLICY 2018 - A BIG PUSH TOWARDS ELECTRIFICATION

Pradeep Gaur/Mint File Photo

Government of National Capital Territory of Delhi released it draft Electric Vehicle Policy 2018. Delhi is facing major issues with air and noise pollution. Adoption of Electric Vehicles (‘EVs’) for road transport will contributes to better air quality, reduced noise pollution, enhanced energy security and reduced greenhouse gas emissions. Delhi has become the seventh state in the country to launch its own EV policy, following Karnataka, Kerala, Telangana, Maharashtra, Andhra Pradesh and Uttar Pradesh. 

In 2013, Government of India launched a National Electric Mobility Mission Plan 2020. Under the mission plan, the Scheme for Faster Adoption and Manufacturing of (Hybrid&) Electric Vehicles in India (‘FAME India’) was launched in March, 2015 for two years as Phase-I, which has subsequently been extended up to 31 March, 2019. Despite Central and State government incentives, pure electric vehicle penetration currently (i.e., in 2017) remains quite low in India, about 0.1% for cars, ~0.2% for 2 wheelers and practically nil for commercial vehicles. This is mainly because of high capital cost, non-availability of charging stations and lack of supply. 

Delhi Electric Vehicle Policy 2018 is trying to address some of the issues by providing incentive for both manufacturers and consumers. The policy will remain in force for the period of 5 years. The primary objective of the Delhi EV Policy 2018 is to bring about a material improvement in Delhi’s air quality by bringing down emissions from transport sector. To do so, this policy will seek to drive rapid adoption of Battery Electric Vehicles (BEVs) in a manner where they contribute to 25% of all new vehicle registrations by 2023.

The following are key incentives proposed for different categories of vehicles:

Two-wheelers (should be eligible under FAME and comparable to >90cc ICE two wheelers)

  • ‘Purchase Incentive’ equivalent to 50% of the demand incentive offered under FAME India
  • An additional ‘Top-up Incentive’ of up to 50% of the FAME India incentive will be provided to vehicles with swappable batteries for a period of three years from the date of notification of this policy
  • Ride hailing and two wheeler rental service providers will be allowed to operate electric two wheeler taxis subject to obtaining a commercial vehicle registration in Delhi
  • Road tax, registration fees and MCD one-time parking fee will be waived for all electric two-wheelers with an ‘Advance Battery'
  • Existing ICE two wheeler owners will get a scrapping and de-registration incentive of up to ₹15,000 per vehicle for scrapping two wheelers that are not BS [IV] certified

Three-Seater Auto-Rickshaws (purchase and use of new electric autos with swappable batteries - ‘e-autos’)

  • An open permit system will apply to approved e-autos, with no limits on the number of Auto Rickshaw Permits (‘e-auto Permits’) to be issued
  • Road tax, registration charges, MCD one-time parking fee and Auto Rickshaw Permit fees will be waived for e-autos
  • Individuals with a valid light motor vehicle driving license (DL) and a PSV badge will be eligible to apply for e-auto permits
  • Fleet owners will also be allowed to obtain and hold e-auto Permits
  • To support wide ownership and improved incomes of individual e-auto owners, the GNCTD will provide following support to individuals with a valid DL and PSV badge who want to finance the purchase of an e-auto in Delhi: (i) 5% of the purchase price (net of FAME India subsidy) will be provided as down payment subsidy to an empaneled finance provider subject to a maximum of ₹12,500, and (ii) 5% interest subvention will be provided subject to the loan amount being capped at ₹2,50,000 and a maximum loan tenor of 3 years
  • Existing TSR Permit holders will get an incentive of up to ₹15,000 per vehicle if they de-register and scrap vehicles that are more than seven years old provided they also surrender their permits
E-rickshaws
  • Delhi Financial Corporation (DFC) will provide a hire-purchase scheme for approved e-rickshaws and to drivers with a valid driving license and PSV badge. Drivers will have to provide 5% of the purchase price of the e-rickshaw as an initial deposit and pay the remainder of the purchase price along with interest at 5% over a 36 month period
  • The GNCTD will also provide following support to individuals with a valid DL who want to finance the purchase of an e-rickshaw through a DFC empaneled NBFC or Scheduled Bank : (i) 10% of the purchase price will be provided as down payment subsidy to an empaneled finance provider subject to a maximum of ₹20,000, and (ii) 5% interest subvention will be provided subject to the loan amount being capped at ₹1,80,000 and a maximum loan tenor of 3 years

Promoting usage of App based e-autos and e-cabs

  • App-based aggregators and ride hailing service providers who provide mobility solutions will be invited to participate in the “App-based e-cab/e-auto user incentive scheme”
  • For all e-cab/e-auto rides taken through an App-based aggregator, the GNCTD will offer ‘cash back’ rebates for short first and last mile connectivity trips. These rebates will be capped at a maximum of 20% of trip cost and an absolute value of ₹10 per ride. The objective of the rebate will be to make an e-cab/e-auto ride at least 10-20% cheaper than an equivalent ride in an ICE cab/auto

Buses

  • The GNCTD commits to pure electric buses being at least 50% of all new state-carriage buses procured for the city fleet including for last mile connectivity, starting with the induction of 1000 pure electric buses in 2019. This will help achieve a target of making 50% of the public transport bus fleet zero emission by 2023
  • In addition, GNCTD will offer reasonable incentives to operators of private stage-carriage vehicles of all sizes to ensure that battery electric vehicles make up least 50% of the entire public transport system in Delhi by 2023

Goods carriers (3 Wheeler)

  • Fleet owners, businesses using three wheeler goods carriers and individual owners will be encouraged to adopt electric three wheeler goods carriers (‘e-Carriers’) by providing an additional purchase incentive equivalent to 50% of the incentive offered under FAME India
  • This ‘e-Carrier Incentive’ will be available for approved list of vehicles as notified by the Transport Department, GNCTD and will be available for the first 5000 e-carriers to be registered
  • Road tax, registration fees and MCD one-time parking fee will be waived for e-Carriers that are eligible for e-Carrier Incentive

Further, the government is pushing measures to promote electric vehicle charging infrastructure in the city. Some of the measures proposed are:

Private charging points - The government propose changes in building bye-laws will be made to make home and work place parking ‘EV ready'. 

  • All new and renovated non-residential buildings with parking demarcated for more than 10 equivalent car spaces (‘ECS’) will need to have at least 20% ‘EV ready’ ECS spots with conduits installed
  • All new and renovated residential buildings, Co-op, Group Housing Societies and colonies managed by Residents Welfare Associations (RWAs) with more than 10 ECS parking space will need to make 100% of demarcated ECS parking, EV ready with conduits installed
  • The GNCTD will provide a grant of 100% of the purchase and installation cost of these charging points up to ₹30,000 per charging point for the first 10,000 charging points
  • Electricity tariff applicable for Charging Stations for e-rickshaws/e-vehicle on single point delivery (₹5.50 per kWh for supply at LT with ToD rebates as applicable) will be extended to include all charging points that are BEVC-AC001 compliant and are connected to an on-site single point of delivery meter

Public Charging Infrastructure - Providing accessible public charging facilities within 3 km travel from anywhere in Delhi

  • The city will be divided into 11 ‘travel districts’ mapping onto existing revenue districts. ‘Energy Operators’ (EOs) will be invited to bid to set up charging stations in each of the travel districts
  • Concessional locations for charging stations will be made available by the GNCTD in every district along with bare minimum lease rentals
  • EOs will be selected for each travel district based on competitive bidding on the basis of lowest capital subsidy requested per charging point installation and the density of charging points (i.e., points/sq.km.) being installed within a two year period — this will include charging points at both Concessional locations and other sites
  • GNCTD will provide a capital subsidy covering cost of chargers and installation expenses to the winning bidder in a district

Public Battery Swapping Infrastructure

  • GNCTD will also invite bids from battery manufacturers and others interested in setting up a battery swapping business. Bids will be invited for up to three ‘Battery Swapping Operators’ (BSOs) who can operate across Delhi
  • BSOs thus selected based on a competitive bidding process will have the right to set up and operate battery swapping kiosks/points within public parking zones bus depots and terminals, metro stations and other GNCTD identified locations. Space within these sites will be allocated by the GNCTD at bare minimum lease rentals
  • 100% of net SGST, accrued to the GNCTD, will be provided as reimbursement to BSOs for purchase of Advanced Batteries to be used at swapping stations

Further, GNCTD will invite battery recycling businesses to establish a presence in Delhi. Appropriate protocols and investment subsidies for setting up such a business shall be notified by the GNCTD after consultation with stakeholders, especially battery and EV manufacturers. The policy  aims to create an eco-system to promote electric vehicles in the city.