New Electric Vehicle Policy in New Delhi

Context: Recently, the Delhi Chief Minister Arvind Kejriwal rolled out a ‘new electric vehicle policy’ for the national capital.

About New Electric Vehicle Policy

  • There will be an incentive of up to Rs 30,000 on electric two-wheelers, electric autos & e-rickshaws and up to Rs 1.5 lakh on electric cars.
  • The Delhi government will organise an Electric Vehicle (EV) Cell to implement and supervise the new electric vehicle policy.
  • The policy will facilitate the setting up of 100 electric vehicle charging stations across the city in one year.
  • The policy addresses different segments of the EV industry and holistically covers every aspect of EV adoption.
  • The policy is aimed at registering 5 lakh Electric Vehicle in Delhi in the next five years.
  • The policy which will remain valid for a period of three years seeks to drive the rapid adoption of Battery Electric Vehicles (BEVs).

Significance of New Electric Vehicle Policy

  • Employment Opportunities and Reduction of Air Pollution: It aims to boost the economy by creating jobs and also reduce air pollution in the national capital. 
  • Financial Assistance and Scrapping Incentive for the Buyers: The buyers of electric two- and three-wheelers, and electric cars will be liable for financial assistance from the government, along with a ‘scrapping incentive’.
  • Boost in the sale of Electric Vehicles: The robust and well-thought EV policies will further boost the EV sales in the respective states.
  • Model Policy for other states: The policy in a way is a benchmark for other states’ policies to follow that are based mostly on attracting manufacturers rather than catalysing demand.
  • Reduction in Import Bill of Oil: The policy is in-line with India’s aim to reduce its oil-import bill and reduce the burden on exchequer and forex reserves of India.
  • The policy fuels demand generation through scrappage & purchase incentives, tax exemptions & interest subvention and open permits.
  • The policy enables the entire ecosystem through a strong focus on charging infrastructure and driver training.
  • The setting up of EV board, Cell and Fund is definitely a step towards driving the implementation of the big vision.
  • The EV policy will be an addition to the Centre’s scheme of ‘Fame India Phase-2’ and people can also avail benefits under both the schemes.

Concerns of New Electric Vehicle Policy

  • Absence of support to Lithium Battery e-Scooters: The missing point in the policy is that it doesn’t support the lithium battery e-scooters with speeds up to 25km/hr. 

Way Forward

  • The lithium battery e-scooters are particularly popular with Delhites because of their attractive prices and extremely low running costs and with a bit of support from the Delhi government, the adoption of such e-scooters would have grown multifold.
  • In the near future, the open-permit system for electric autos in Delhi will promote zero-emission last and the first-mile green mobility in the capital. 
  • The Government’s decision to incentivise e-vehicles will surely act as a catalyst for inclining the customers towards electric vehicles in every aspect.
  • The Government’s vision to touch a 25% registration mark by 2024 is a quite practical approach and will help the city in curbing other concerning factors including generating employment opportunities, pollution levels, etc.

Source: The Hindu

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