Delhi Cabinet Clears EV Policy, Targets 5 Lakh Vehicles by 2024

In an attempt to help curb the capital’s pollution levels, the Kejriwal Government has cleared the EV Policy for Delhi

In an attempt to help curb the capital’s pollution levels, the Kejriwal Government has cleared the Electric Vehicle (EV) Policy for Delhi. Under he policy, the government aims to register at least 5 lakh EVs by 2024 in order to reduce air pollution in the national capital region, announced Delhi CM Arvind Kejriwal. The vehicles will mainly include two-wheelers and commercial vehicles. Thus, the government has stayed clear of the private vehicles market, where it cannot really play a significant influencer without bigger subsidies. 

The government will also form an electric vehicle board and an EV cell within the transport department that will be responsible for implementing the policy.

In a public announcement, Kejriwal also said that the Delhi government’s aim is to register at least 25 percent electric vehicles by 2024. According to the EV policy passed by the Delhi cabinet, the government will provide a subsidy to promote the EVs.

Under the policy, the government will offer a purchase incentive of Rs 5,000 per kWh of the battery capacity of the vehicles compared to Rs 5,500 currently offered by the 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. Additionally, it has also waived road tax and registration fees for all battery powered  EVs for the next three years. Keeping hybrids out of the picture.

Electric four-wheelers will get a purchase incentive of Rs 10,000 per kWh of battery capacity for the first 1000 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.

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.

The key objective for launching the policy, besides promoting the transition to cleaner and green transportation, is to curb Delhi’s pollution problem. In his announcement, Kejriwal stated that nearly 40 percent of the PM 2.5 pollution and over 80 percent of Carbon Monoxide and NOX pollution are caused by the Internal Combustion Engine (ICE) vehicles.

Delhi will allow ride-hailing service providers to operate electric two-wheeler taxis while all the last-mile delivery companies like food delivery and e-commerce logistics providers are expected to shift to 50 percent of their fleet to electric by March 2023 and 100 percent by March 2025.

E-rickshaws and carriers will get an incentive of Rs 30,000 per vehicle and interest subvention of 5 percent on loans. The open permit system will apply for individuals who will be given permits on a first-come-first basis, subject to the cap of a maximum number of autos permissible in Delhi, the statement further said.

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.

The Kejriwal government had in November 2018, issued its draft of the EV policy and invited comments and suggestions from the stakeholders. The policy at the time aimed to reduce Delhi’s pollution by taking care of vehicular emission focusing primarily on “incentivising the purchase and use of electric two-wheelers, and supporting the electrification of public/shared transport.”