EMobility+ Policy Debrief September 2020

POLICY DEBRIEF SEPTEMBER 2020

POLICY DEBRIEF A progressive EV Policy was announced by Delhi Government recently. 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 percent 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. A cess on the sale of diesel is already applicable in the NCT of Delhi at 25 paise per litre. Additional road tax will be levied on diesel and petrol vehicles, especially luxury cars. The notice further added that an appropriate congestion fee will be levied on all trips taken using cab aggregator and ride-hailing services.

PROVISIONS FOR DIFFERENT SEGMENTS: Electric Cars: A purchase incentive of Rs 10,000 per kWh of battery capacity will be provided per electric four-wheeler (subject to a maximum incentive of Rs 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.

Electric Two-Wheelers: The demand generation incentives offered for two-wheelers will be based on battery capacity. It will be available only for electric two-wheelers with advanced batteries. A purchase incentive of Rs 5000 per kWh of battery capacity will be provided per vehicle to the registered owner and subject to a maximum incentive of Rs 30,000 per vehicle. The registered owner of electric two-wheelers will also be eligible for a scrapping incentive for scrapping and deregistering old ICE two-wheelers registered in Delhi.

Electric Auto Rickshaws/ E-Rickshaws/E-carts: An open permit will be applicable for e-autos wherein permits will be given on the first-come-first-serve basis.

Individuals with a valid light motor driving license (DL) and a PSV badge will be eligible for e-auto permit. A purchase incentive of Rs 30,000 per vehicle will be provided to the registered owner of the electric auto, electric rickshaws and electric carts. The incentive will apply to all e-rickshaws and e-carts including the models with lead-acid batteries and swappable models, where the battery is not sold with the vehicle. Additionally, Interest subvention of 5 percent on loans and hire purchase scheme will be given for the purchase of an e-auto, e-rickshaw and e-carts only if the loan is availed from Delhi Finance Corporation (DFC).

Electric Buses: The policy seeks pure electric buses to constitute at least 50 percent of all new stage carriage buses procured for the city fleet, starting with the induction of 1000 pure electric buses by 2020.

Goods Carriers: Light Commercial Vehicles used as goods carriers will get a purchase incentive of Rs 30,000 to the first 10,000 ecarriers to be registered in Delhi after issuance of policy in addition to interest subvention of 5 percent on loans availed from DFC. The purchase of e-carriers will also be eligible for a scrapping incentive for scrapping and deregistering of old ICE goods carriers.

Extra Provisions: Road tax and registration fees will be waived for all battery electric vehicles during the period of the policy. If the battery is not sold with the vehicle, 50 percent of the purchase incentive will be provided to the vehicle owner and the remaining 50 percent would be provided to energy operators for defraying the cost of any deposit that may be required from end-users for a swappable battery.

SEPTEMBER 2020

POLICY DEBRIEF

VEHICLE SCRAPPAGE POLICY-SET TO COME OUT SOON A Vehicle Scrappage policy is set to come out soon under which recycling clusters may be established near ports, such that India will emerge as the world's leading automobile manufacturing hub in five years. Union Minister Nitin Gadkari has said that the new scrapping policy will be such that old cars, trucks and buses will be scrapped. Vehicle scrappage policy has the potential of not just putting old and polluting vehicles off Indian roads but also injecting life into the automobile industry due to fresh demand. With resale value of vehicles beyond 15 years being extremely low, these vehicles can be sent to scrapyards with some sort of monetary compensation to owners which could ensure two benefits - incentive for owners to get rid of such vehicles and putting these polluting vehicles out to help the environment.

TELANGANA EV POLICY The Telangana government has approved an electric vehicle policy to boost the adoption and promotion of electric vehicles in the State and to attract investments in the sector. It focuses on creating local job opportunities with 1.2 lakh direct and 2.5 lakh indirect employment opportunities and encouraging electric vehicles production by providing incentives. Under this policy, 100 per cent exemption on road tax and registration will be provided to the first two lakh electric two-wheelers and first 5,000 electric commercial four-wheelers. The electric three-seater auto-rickshaws will also get 100 per cent exemptions of road tax and registration fee for the first 20,000 vehicles. The EV manufacturers and EV charging stations/swapping stations equipment will be eligible for 25% capital investment subsidy for the first 500 fast charging/swapping stations duty exemption on power tariff to public charging stations for 10 years and reimbursements up to 75% for private EV charging service providers and fast-charging equipment. The Telangana has set a target of electric vehicles sales by 2025, 80% two- and three-wheelers which include motorcycles, scooters, autorickshaws, 70% commercial electric cars ride-hailing companies, such as Ola and Uber, 40% of electric buses, 30% of private cars and 15% of electrification of all vehicles.

CENTRE ASSURES SUBSIDY FOR 1000 E-BUSES AND 200 EV CHARGING STATIONS FOR DELHI Delhi Transport minister Kailash Gahlot discussed the issue of installation of charging stations as per AAP government’s new Electric Vehicle policy with Union Power minister R K Singh and said the Centre assured that subsidy will be provided for 1,000 electric buses in the city. The first leg of the policy targets installation of 200 charging stations in Delhi in the next one year, so that there is a charging station within every 3 km. The Delhi EV Policy is being discussed worldwide now. “Mr. Singh has also assured to consider subsidies for 1,000 electric buses in the city. The Centre’s support will act as a huge catalyst to the policy and motivate more people and organisations to switch to EV,” the statement quoting Gahlot said. The EV policy of Delhi government launched on August 7 by Chief Minister Arvind Kejriwal aims at having 5 lakh (25 percent of all new vehicle registrations) electric vehicles in Delhi by 2024. Along with providing category based incentives, it also aims to develop an effective network of charging stations and infrastructure throughout the city. There are also provisions in the policy to encourage more private players to become partners in the initiative through setting up private charging stations/battery charging points, while ensuring there is enough competition so that the technology is affordable to the common man, the statement added.

SEPTEMBER 2020