Delhi Government Announces New Electric Vehicle Policy

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Delhi Chief Minister Arvind Kejriwal, in a press conference today, announced that Delhi Government has notified the Electric Vehicle Policy for the national capital to promote the use of electric vehicles. The Delhi government aims to boost the economy and reduce pollution levels in the national capital which is recognised as one of the world’s most polluted cities.

Addressing a press conference in this regard, CM Kejriwal said, “We have notified the Electric Vehicle Policy today. With this policy, we aim to generate employment to give a boost to Delhi’s economy and reduce pollution levels in the national capital.”

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What are the provisions under this policy?

Under this policy, the Delhi government aims to register at least 5 lakh electric vehicles by 2024 in order to reduce air pollution in the national capital region. These electric vehicles will mostly include two-wheelers and commercial vehicles, said Delhi CM. He said that the objective is that by 2024, 25% of all new vehicle registrations should be for EVs.

The Chief Minister further said that the Delhi government will give ‘scrapping incentive’ under electric vehicle policy. CM Kejriwal also declared incentives up to Rs 30,000 for 2-wheelers, autos, e-rickshaws, up to Rs 1.5 lakh for cars under electric vehicle policy. The Electric Vehicle Policy is valid until three years post which the government will review the outcome of the policy. He also said that all the benefits offered in Delhi’s EV policy will be applicable over and above the central government’s FAME 2.0 scheme.

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Kejriwal further said that the EV policy is a result of intensive and exhaustive consultations with experts from across the country and that EV policies from across the world were incorporated. “This policy is the most progressive in the country and will be counted as one of the better ones anywhere in the world,” he said. “For now, this policy is for three years but we will make changes in this time span if required.”

The Delhi government is targeting induction of 35,000 electric two, three, four-wheelers and buses along with 1,000 electric vehicles for last-mile deliveries and 250 public charging and battery swapping stations. Also, it has waived road tax and registration fees for all battery electric vehicles for the next three years. The policy also mandates that new home and workplace parking should reserve 20 percent parking to EVs. The Delhi government will provide a 100 percent subsidy for the purchase of charging equipment costing up to Rs 6,000 per unit for the first 30,000 charging points at homes and workplaces.

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Under this policy, the Delhi government will offer a purchase incentive of Rs 5,000 per kWh of battery capacity compared to Rs 5,500 currently offered by Delhi Pollution Control Committee. Besides that, there will be a scrapping incentive of up to Rs 5,000, subject to evidence of matching contribution from the manufacturer or dealer. Electric four-wheelers will get a purchase incentive of Rs 10,000 per kWh of battery capacity for the first 1,000 cars subject to a cap of Rs 1,50,000 per vehicle. All the leased cars used for the commute of Delhi government officers will be transitioned to EVs within the next 12 months.

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The Delhi cabinet had approved the Delhi Electric Vehicle (EV) Policy, 2019, last year. Delhi currently has 83,730 electric vehicles out of over 11 million vehicles registered in the city. Of the 83,730 registered EVs, a mammoth 75,567 are e-rickshaws. However, the number of cars and electric two-wheelers is only limited to 908 and 3703 respectively. Hopefully, with the adoption of the new policy, it will pave the way for more electric vehicles not just in Delhi but across the entire country.

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