Delhi’s Electric Vehicles Policy 2020
Delhi Government has announced the Electric Vehicle Policy 2020.
• India has turned itself to electric vehicle to beat pollution.
• By 2030, the government aims to make India a 100-per cent electric-vehicle nation.
• The central is also focusing on the initiatives taken, which are Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India)and National Electric Mobility Mission Plan (NEMMP) 2020.
• It targets to achieve 6-7 million sales of hybrid and electric vehicles by the year 2020.
• The NEMMP 2020 is a National Mission document providing the vision and the roadmap for the faster adoption of electric vehicles and their manufacturing in the country.
• This plan has been designed to enhance national fuel security, to provide affordable and environmentally friendly transportation and to enable the Indian automotive industry to achieve global manufacturing leadership.
FAME II scheme:
• To boost electric vehicle in India the government has announced an outlay of ₹10,000 crore for FAME II.
• ₹1,000 crore has been earmarked for setting up charging stations for electric vehicles in India. Under the scheme the government will offer the incentives for electric buses, three-wheelers and four-wheelers to be used for commercial purposes.
Salient Features of Delhi’s Electric Vehicle Policy 2020
Initially, the policy lays the maximum weight on replacement of two-wheelers, public transport.
Policy also focuses on the replacement of the existing auto rickshaws and State-run buses with e-autos and e-buses respectively.
Policy would also ensure that delivery-based services operating in the city are powered by e-mobility.
Currently, the share of EVs is negligible in Delhi. Within the next one year, the Delhi government aims to induct at least 35,000 EVs across segments and the five-year plan envisages induction of 5 lakh EVs.
The policy which will remain valid for a period of three years seeks to drive the rapid adoption of Battery Electric Vehicles (BEVs) so that they contribute to 25%of all new vehicle registrations by 2020.
The fiscal incentives being offered would be in addition to the demand incentives available in the central government’s FAME II scheme.
One of the key provisions of this ecosystem for EVs in Delhi are incentives on the purchase of new vehicles. According to 2020 Delhi EV policy, the Delhi government now offers a subsidy of ₹5,000/kWh or up to ₹1.5 lakh for electric four-wheelers and ₹30,000 for electric two-wheelers.
The Delhi government's new EV policy also includes waiving off of road tax and registration fee on all new EV, setting up a solid charging infrastructure, etc. Besides that, the policy intends to fund its incentives via charges such as congestion charge, etc.
The Delhi government will offer 100% subsidy for the purchase of charging equipment costing up to ₹6,000 per charging point. This has been capped for the first 30,000 charging points set up at homes/workplaces. This subsidy to be routed through DISCOMS who will be in-charge of charger installations.
Provisions for Different Segments
Policy focuses attention on incentivising different segments.
• A purchase incentive of ₹ 10,000 per kWh of battery capacity will be provided per electric four-wheeler (subject to a maximum incentive of ₹1.5 lakh per vehicle) to the registered owner of the first 1000 e-cars to be registered in Delhi after issuance of the policy. • The demand generation incentives offered for two-wheelers will be based on battery capacity. It will be available only for electric two-wheelers with advancedbatteries.
• A purchase incentive of ₹5000 per kWh of battery capacity will be provided per vehicle to the registered owner and subject to a maximum incentive of ₹30,000 per vehicle.
• Light Commercial Vehicles used as goods carriers will get a purchase incentive of ₹ 30,000 to the first 10,000 e-carriers to be registered in Delhi after issuance of policy in addition to interest subvention of 5% on loans availed from DFC.
• The purchase of e-carriers will also be eligible for a scrapping incentive for scrapping and de-registering of old ICE goods carriers. • The state government will be looking at the substantial addition of buses to the public transport fleet in the period 2019-2022.
• The policy seeks pure electric buses to constitute at least 50% of all new stage carriage buses procured for the city fleet, starting with the induction of 1000 pure electric buses by 2020.
Fueling with electricity offers some advantages not available in conventional internal combustion engine vehicles.
The rise of electric vehicles is inevitable around the world and India alike. While several manufacturers have rolled EVs, there are several challenges that need addressing and a government intervention is one of the plausible ways to go about it.
Challenges of EV in India
o Despite lack of specific pointers towards electrification, the EV Industry in India will still take another few year to evolve. The primary concerns have been around range anxiety (kms on a single charge) and the lack of charging infrastructure.
o Incentive: EVs worldwide constitute a very small niche and remain dependent on incentives. Adoption in India will also be heavily dependent on Government incentives. Thus the government efforts play a big role here.
o Cost of the battery: The cost of the battery and power electronics constitute almost two-thirds of the cost of an EV. Multiple factors like demand-supply gaps, uneconomically low volumes etc., lead to the high cost of manufacturing EVs. Thus, may not attract the automobile industries.
o Price multiple: The biggest hurdle for buyers looking to go electric is the high price of EVs.
o Challenges from the Grid side: In next few years the electricity demand for household and industries would going to surge. Introduction of new EV infrastructure will have impact on the supply side. Even assuming that renewables and newer, cleaner sources of thermal or nuclear power come on stream within the next few years. Projections for 2030 show that even with a fair penetration of EVs (two, three, four-wheelers, and intra-city buses), the increase in demand for electricity is likely to be about 100 TWh (Tera watt-hours) or about 4% of the total power generation capacity. So, ramping up power generation should be possible to meet that growth in demand.
There is a need to create an integrated policy to nurture this technology. An eco-system approach is what will help achieve India’s progress on electric mobility. Besides the end-users or customers, the key stakeholders could play a transformable role in India’s transition towards EVs.
Government: By rationalizing the regulations on emissions and fuel efficiency, clarifying aspirations, strategic intent and direction, exploring incentives and subsidies, it can support EV adoption and focus on developing a supportive ecosystem.
Role of power, fuel, and charging infrastructure companies: By laying down a foundation of support, innovating on business models (e.g., leasing of batteries, swapping infrastructure, deploying fast chargers), making the economics of charging infrastructure work, providing stable power supply and grid stability, they can enable easy and rapid charging and drive EV adoption.
Automotive industry: By changing the product and component mix bringing EV components and vehicles to life, building the right talent pool and skill set, improving the performance of batteries and electric vehicles and building scale, the industry can drive the EV disruption in India.