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STATE FOCUS
Making EVs inevitable in New Delhi The Indian government’s thrust on EV policy and related measures have bode well for the sector. This article explores the policies and incentives implemented, and ensuing disruptions in the sector, with a special emphasis on Delhi.
Debmalya Sen Senior Consultant CES The growth of EVs has been one disruption, which has in quite many ways started to change the automobile industry. In the last two articles, we focused on two of the most promising growth stories -China and Norway. In the current issue, we bring the focus back to India, specifically on our National Capital Region, Delhi. The development of the EV ecosystem in India took off with the formation of National Electric Mobility Mission Plan (NEMMP) in 2013. A big move in the form of FAME I came into effect in 2015 to encourage EVs which provided subsidies. Vehicles in most segments – 2W, 3W, electric and hybrid cars, and electric-buses - obtained the subsidy benefit of the scheme. The scheme was later extended till 2019.
Adjoining state-level policies started to develop from 2017, with Karnataka being the first state to float its own EV policy. To support the growth of EVs, government released a clarification in 2018 declaring EV charging as a service by Ministry of Power and also released guidelines and standards for setting up of public infrastructure. The year 2018 saw release of six state-level EV policies, with Delhi being one of them. Last year, saw further amendments in model building bye-laws by Ministry of Urban Development, and the launch of phased manufacturing plan along with FAME II. During the budget, GST for EVs and chargers were lowered to five percent, with benefits on subsidized interest rates for purchase of EVs. All of these measures were targeted to help the EV sector gather steam and grow eventually. Delhi launched its draft EV policy on November 27, 2018, for stakeholder consultation and
EV charging station at South Extension-II | January-February 2020
review and finally launched the final policy on December 23, 2019. The vision is to have 25 percent of all vehicles as EVs by 2023. If the plan is realized, it will account for fuel saving of `6,000 crore and end emission of 4.8 MT of CO 2 almost equivalent to one lakh petrol vehicles. The intention being clear - to take concrete steps to curb air pollution. To drive large-scale adoption of EVs, this policy will, therefore, focus attention on: • Incentivizing the purchase and use of e-2W • Supporting the electrification of public/shared transport The Delhi EV policy has been hailed by experts from all sectors as being the most holistic. The policy offered something to each stakeholder – consumers, startups and other private entities. The major focus of the policy is directed towards 2Ws and 3Ws, which account for 2/3rd of total vehicles in Delhi. Incentives and subsidies are announced for both electric 2Ws and 4Ws based on engine power of the electric motor. Delhi government had targeted 35,000 EVs by 2020; at present, there are around 76,000 EVs in Delhi. The target is to have five lakh EVs on road by the next five years. Special provisions have been detailed for ride-hailing and last-mile delivery services, with the vision of 50 percent electrification by 2023 and an ambitious 100 percent by 2025. Upfront subsidy of `30,000 on purchase of electric rickshaw and carrier vehicles, and five percent subsidized loan to EV buyers has
