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DELHI ELECTRICAL VEHICLE POLICY 2019

BACKGROUND

• The draft Delhi EV Policy was put in public domain for inviting comments and suggestions on 27.11.2018 in response to which wide-ranging suggestions were made by various stakeholders including international and national think-tanks, non- profits, experts from academia, EV manufacturers, battery manufacturers, multi- lateral bodies, and concerned individuals.

• A day long Stakeholder Consultation event was also held on 18.12.2018 by the Dialogue & Development Commission of Delhi (DDCD). The consultation was inaugurated by Hon’ble Chief Minister and Hon’ble Minister Transport, and saw in- depth discussions from over 200 participants from across the country on thematic areas such as charging infrastructure, two-wheelers, three-wheelers, industry perspectives and citizen perspective on the draft Delhi EV policy.

• On 26.06.2019 and 27.06.2019, Delhi government organized the Urban Mobility Lab in Delhi with a special focus on identifying obstacles and collaboratively designing solutions to enable innovative start-ups in e-mobility space take off in Delhi.

• Based on the various comments and suggestions received through the above multi- staged process, and keeping in mind the developments in FAME India Phase II scheme at the national level, the final draft of Delhi EV policy 2019 was prepared.

GOAL and IMPACT

• The primary goal is to improve Delhi’s air quality by bringing down emissions from the transport sector. To do so, this policy will seek to drive rapid adoption of Battery Electric Vehicles (BEVs) such that they contribute to 25% of all new vehicle registrations by 2024.

• The policy particularly focuses on electric two-wheelers, shared transport vehicles (e.g. three-wheelers/buses) and goods carriers/freight vehicles, since they contribute to majority of the vehicular pollution. Currently, electric two-wheelers constitute to only 0.2% of annual two-wheeler sales, electric cars contribute to 0.1% of car sales and the sales of electric three-wheelers (autos/goods carriers) are almost NIL.

• Within a year, Delhi government is targeting the induction of 35,000 electric vehicles (2/3/4 Wheelers and buses), 1000 EVs for last mile deliveries and 250 public charging/swapping stations to come up in Delhi.

• In the next 5 years, Delhi government is targeting to put 5 lakh new EVs register in Delhi due to this policy. Over their lifetime, these EVs are estimated to avoid approximately Rs 6,000 crores in oil and liquid natural gas imports and 4.8 million tonnes of CO2 (carbon dioxide) emissions, which is equivalent to avoiding CO2 emissions from nearly 1 lakh petrol cars over their lifetime. They will also help avoid about 159 tonnes of PM 2.5 (fine particulate matter) tailpipe emissions.

• Delhi government’s vision is to make Delhi the EV capital of India

Following are the key provisions under Delhi Electric Vehicle Policy 2019: TWO WHEELERS

• Purchase incentive of ₹5,000 per kWh of battery capacity. For an average e-two wheeler with 2kWh battery, applicable incentive would be approx. Rs 10,000 as compared to Rs 5,500 presently being offered by DPCC as subsidy for battery electric vehicles.

• Scrapping incentive of up to Rs 5000 to be offered subject to evidence of matching contribution from the dealer or OEM

• For the first time in Delhi, ride hailing service providers will be allowed to operate electric two wheeler taxis, which will be a big boost to clean last-mile connectivity

• All two-wheelers engaged in last-mile deliveries (e.g., food delivery, e-commerce logistics etc.) will be expected to transition 50% of their fleet to electric by March 2023, and 100% of their fleet by March 2025

ELECTRIC AUTOS (E-AUTOS)/E-RICKSHAWS/E-CARRIERS

• Purchase Incentive of ₹30,000 per vehicle (NIL at present)

• Interest subvention of 5% on loans and/or hire purchase scheme for the purchase of an e-auto. So a loan of typically 12% interest from DFC will now be made available at 7% - the lowest anywhere in India for EVs.

• For E-autos, open permit system will apply for individuals who will be given permits on a first-come-first basis, subject to the cap of maximum number of autos permissible in Delhi as per SC orders.

• E-Carriers will be completely exempt from the prohibition on plying and idle parking of lights goods vehicles on identified roads of NCT of Delhi during specified timings

FOUR WHEELERS (E-CARS)

• Purchase incentive of ₹10,000 per kWh of battery capacity for first 1000 cars subject to a cap of Rs 1,50,000 per vehicle

• All leased/hired cars used for commute of GNCTD officers will be transitioned to electric within a period of 12 months from the date of notification of this policy

BUSES

• Subsidy as decided by GNCTD from time to time with a commitment that pure electric buses shall constitute at least 50% of all new buses (including smaller buses for last mile connectivity) to be added to the city bus fleet.

ACROSS ALL VEHICLES

• All financial incentives will be applicable for both fixed battery models and swappable battery models. Delhi EV policy is technology agnostic and encourages innovation in all technologies.

• Road tax and registration fees to be waived for all Battery Electric Vehicles during the period of this policy

PRIVATE CHARGING INFRASTRUCTURE (At Homes/Workplaces)

• All new home and workplace parking will need to be ‘EV ready’ with 20% of all vehicle holding capacity/parking required to be EV ready

• Delhi government to provide a 100% subsidy for the purchase of charging equipment up to ₹6,000 per charging point for the first 30,000 charging points at homes/workplaces. Subsidy to be routed through DISCOMS who will be in-charge of charger installations

PUBLIC CHARGING INFRASTRUCTURE

• Providing accessible public charging/battery swapping facilities within 3 km travel from anywhere in Delhi is a key objective of this policy

• ‘Energy Operators’ (EOs) will be invited to set up charging and battery swapping stations across Delhi in multiple phases by pooling and providing Concessional Locations for charging stations at bare minimum lease rentals. Delhi government shall provide a capital subsidy for the cost of chargers installation.

• 100% of net SGST will be provided as reimbursement to EOs for purchase of Advanced Batteries to be used at swapping stations.

POLICY IMPLEMENTATION

• A dedicated EV cell shall be established within the Transport Department for effective day-to-day implementation of the Delhi State EV Policy

• Funding for the various incentives under Delhi EV Policy will be obtained from multiple sources such as Pollution/Diesel Cess, Road Tax, Environment Compensation Charge (ECC) etc. using the ‘Feebate’ concept. It will be aggregated under an umbrella, non-lapsable ‘State EV Fund’.

• State EV Board shall be constituted as the apex body for effective implementation of Delhi EV Policy 2019.

• Policy shall be valid for three years from the date of notification.

• All financial incentives/subsidies will take effect from the date of notification of the policy and will be provided directly to buyers of electric vehicles, after the purchase is made. Until then, the present subsidies being offered under Air Ambience Fund of DPCC shall continue.

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