[avishar]

The government of Delhi has announced a new Electric Vehicle policy, to boost the registration of EVs in the city and also has promised to setup up the necessary charging infrastructure.



The major points about the policy collected from different articles:

• Delhi 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. There are only 908 private electric cars and 3,703 e-two-wheelers in Delhi.
  
  
• The Delhi government would introduce financial incentives for people buying e-vehicles. For two-wheelers, auto-rickshaws, e-rickshaws and freight vehicles, there will be incentives up to Rs 30,000 and for cars, it will up to Rs 150,000. “These incentives are over and above already existing incentives for e-vehicles under the central government,”
  
  
• The Delhi government will also provide a scrapping incentive, the first in the country, for replacing the fuel-based vehicle with e-vehicle
  
  
• Till 2024 25% of the total vehicles being registered in Delhi would be electric vehicles.
  
  
• The government will also give interest waivers on the purchase of electric commercial vehicles.
  
  
• A network of charging stations would be created in the city. In the first phase, he said, there would be 200 such stations which will be created with the government’s objective to ensure one charging station within a three-kilometre radius across the city.
  
  
• The government will also set up a 'State Electric Vehicle Board'
  
  
• The Delhi cabinet had approved the Delhi Electric Vehicle (EV) Policy, 2019, last year with an aim to reduce air pollution by offering subsidies and waiving road tax and registration fee for electric vehicles bought in the national capital.

Sources:

CM Arvind Kejriwal launches Delhi Electric Vehicle Policy, says it will boost economy

Kejriwal announces notification of Delhi Electric Vehicle Policy

Delhi CM Arvind Kejriwal launches electric vehicle policy, calls it ‘most progressive’

[Ps_o]

Well, remember we need to read the fine print for anything Delhi government does.

Attaching the pdf for anyone who wants to read into it.


Couple of points to note:

• A Purchase Incentive of Rs. 10,000/- per kWh of battery capacity shall be provided per electric four-wheeler (subject to a maximum incentive of Rs.1,50,000/- per vehicle) to the registered owners of the first 1000 e-cars tobe registered in Delhi after the issuance of this policy.
• All existing residential and non-residential building owners shall be encouraged to install Private Charging Points (PCPs) within their premises.These charging points shall especially provide shared access to Electric Vehicle charging for residents of group housing societies and multistory apartment complexes.The GNCTD shall provide a grant of 100% for the purchase of charging equipment up to Rs. 6000/- per charging point for the first 30,000 charging points.
• Road Tax: Additional road tax shall be levied on diesel and petrol vehicles, especially luxury cars. The additional tax shall be based on a sliding scale with high price diesel vehicles paying the highest additional road tax and low price two wheelers incurring a small addition.

Hopefully, more details to follow and clarity in coming months/years. Delhi still doesn't provice Tax exemption like many other states do.

[sri_tesla]

Good decision by Delhi govt to waive road tax on EVs just like many other states. Subsidy for the first 1000 cars seems a bit low and intended to make headlines rather than provide benefits for early adopters in decent numbers. For comparison, Maharashtra providing Rs 1 lakh subsidy for the first 1 lakh customers.

Also, nice to see decent amount of subsidy for 2 wheelers (Rs 5,000 per kWh) and electric autos. These will be in addition to central govt subsidy of Rs 10,000 per kWh.

[ramnaresh_2000]

Originally Posted by Ps_o

[b]A Purchase Incentive of Rs. 10,000/- per kWh of battery capacity shall be provided per electric four-wheeler (subject to a maximum incentive of Rs.1,50,000/- per vehicle) to the registered owners of the first 1000 e-cars tobe registered in Delhi after the issuance of this policy.

This mean 30 kwh Nexon EV will get 1,50,000/- incentive? This is a good move. However, Road Tax should be eliminated, charging slabs should be decreased and we should get subsidized loans, else, we do not see any movement in adopting EV revolution in India.

[Ps_o]

Originally Posted by ramnaresh_2000

This mean 30 kwh Nexon EV will get 1,50,000/- incentive? This is a good move. However, Road Tax should be eliminated, charging slabs should be decreased and we should get subsidized loans, else, we do not see any movement in adopting EV revolution in India.

On paper it seems so, however please do note they promised the same in last policy in 2018 and never delivered (Please someone correct me if I am wrong)
Here is the excerpt from last policy (attached for reading):

• Subsidy of ₹30,000 for vehicles that cost upto ₹5 lacs and₹1,50,000 for vehicles that cost more than ₹5 lacs

In the same policy they were previouly giving 100% subsidy for purchase and close to 30K for installation in societies which has been reduced to only 6K in latest policy.


Like i said, we would need to wait for some months to get more clarity on details. It could be in some cases you apply and wait for the agency to pay you back which might take it's time.
Thing is I am trying to upgrade my booking from Tiago and Nexon EV is already on my shortlist, Central and State government incentives would definitely help sweeten the deal and make my decision much easier.

[FrozeninTime]

Some of the key points I noticed were:

• The policy is valid for three years only
• The main focus is on two wheeler as they constitute of new bulk of vehicle registration in Delhi.
• Increase in Road tax for Fossil fuel powered Vehicles with higher taxes for Diesel Vehicles - Another Blow to diesel vehicle ownership
• Congestion Fee

The government needs to build EV infrastructure first before forcing people to adopt EV vehicles. There is no need to give subsidiary for buying EV vehicles The current crop EV vehicles have abysmal range which makes them impractical in place like Delhi where people travel long distances. It will be interesting to see how the policy pans out as.

[ramnaresh_2000]

Originally Posted by Ps_o

Thing is I am trying to upgrade my booking from Tiago and Nexon EV is already on my shortlist, Central and State government incentives would definitely help sweeten the deal and make my decision much easier.

Congrats great choice of vehicle. There is already tax incentive available on interest paid up to 1,50,000/- on EV car loans under section 80EEB for purchased between FY 20-21. This might not be much, but every penny counts

[landcruiser123]

This is surely a step in the right direction. However, they should have made it flat INR 1.5 lakhs for cars and INR 50k for 2 wheelers. Along with no registration charges, this makes sense with for cars like Nexon EV.

Just hope that this isn't the only step the Delhi government is taking to achieve clear skies in winter 2020.

[avishar]

Originally Posted by FrozeninTime

The government needs to build EV infrastructure first before forcing people to adopt EV vehicles. There is no need to give subsidiary for buying EV vehicles The current crop EV vehicles have abysmal range which makes them impractical in place like Delhi where people travel long distances. It will be interesting to see how the policy pans out as.

Thats quite a moral debate isn't it?

Is it really a good use of public money to subsidize an electric car which costs more than Rs 15 lakh? If a person able to considering buying a Rs 15 lakh car in India, he is a wealthy person, no two-ways about it.

Especially when the money comes from subsidies that are going to come from squeezing diesel buyers. It could be a cheap diesel car, but the buyer is penalized to pay for the rich man's EV. Also EV's won't be paying any road taxes or hardly any GST, nor is electricity rates taxed as high as petrol.

And EVs don't work without subsidies. The subsidies that are being doled out by some of the European countries today are incredible, and states are absorbing a lot of the cost. But we are not as rich as the Europeans nor do we have a tax-base large enough to spread out the costs.

Should the movement towards EVs take place due to natural market forces or should the consumers be coerced into it because they don't know what is really good for them?

If the answer is that the buyers do not know what is good for them - that is we need to look at a bigger picture regarding the environment - here's a thought.

Did the government incentivise us to move from BS2 to BS3 or for the more recent example, BS4 to BS6? Infact they couldn't have made the process more difficult if they had tried. We had to buy BS6 automobiles at market rate, with the car makers jacking up the prices and the cleaner but more expensive fuel.

[FrozeninTime]

Originally Posted by avishar

Thats quite a moral debate isn't it?

Is it really a good use of public money to subsidize an electric car which costs more than Rs 15 lakh? If a person able to considering buying a Rs 15 lakh car in India, he is a wealthy person, no two-ways about it.


Did the government incentivise us to move from BS2 to BS3 or for the more recent example, BS4 to BS6? Infact they couldn't have made the process more difficult if they had tried. We had to buy BS6 automobiles at market rate, with the car makers jacking up the prices and the cleaner but more expensive fuel.

The main focus of government should have been on last mile connectivity and upgrading bus infrastructure. It has left last mile connectivity on shoulder of private sector who were already using battery powered contraption called e rickshaws since 2012. Whats the point of giving subsidiary to these operators. At the end of day Delhi people will be filling the coffers of government without any tangible benefits.

[SKC-auto]

Found this Telangana EV policy in my feed, looks little ambitious for private cars, less ambitious for buses.

80% two- and three-wheelers (motorcycles, scooters, autorickshaws)

70% commercial cars (ride-hailing companies, such as Ola and Uber)

40% buses

30% private cars

15% electrification of all vehicles

https://www.nrdc.org/experts/anjali-...ndia-telangana

[hiren.sharma]

This is definitely a good move by Delhi Govt., far better than the higher GST rates imposed by Central Govt on Hybrid Vehicles . This is a good move to begin with, of course, more policies should follow as this won't help much.

However, the move won't be that easy. Central and State both earn big revenue from Diesel and Petrol taxes and losing out on it could pose even bigger problems. We have already seen the outcomes of 3 months lockdown.

[SKC-auto]

Originally Posted by hiren.sharma

However, the move won't be that easy. Central and State both earn big revenue from Diesel and Petrol taxes and losing out on it could pose even bigger problems. We have already seen the outcomes of 3 months lockdown.

India is currently paying ~$1 billion every 3 days to import oil. Once EVs become mainstream, all the subsidies will be gone and government will find some way to get the taxes.

The real advantage is those billions of dollars will be saved by ordinary people instead of buying petrol and contributing to the import bill. It's like having a massive UBI(universal basic income) all the year.

I believe we are going to have a totally different way of transport in next 10 years, as a TAAS(transport as a service) where in majority of the users will not buy individual cars for daily commute, may be long drive you can rent a car.

So what I am trying to say is government should be ready for that new world and should reduce its dependence on Road taxes and Fuel charges.

[Spaced Out]

Good thoughts but not necessary good policy.

Delhi government is too small to be able to make impact on it's own and as many commentators above have pointed out subsidy is not the best way. A better step would have been to move all Delhi government car purchasing to EV. This would have created a subtle pressure for Central Govt and other state government to respond, creating the same pricing impact as EESL has had on LED bulb, energy efficient ACs etc.

I also feel that EV is not the answer to air pollution. It only shifts the problem elsewhere. Most of the electricity produced in India is from fossil fuel sources and the central government is pushing head for increasing coal production as the rest of the world moves away from it.

Scroll: India's plan to revive its flailing economy by boosting coal production is deeply flawed.

[vishnusv]

Regarding pollution, I think EVs still have advantages. It is much easier to control pollution from fossil fuel power plants than thousands of vehicles spread all over the country. If all vehicles are EVs it will be almost similar to how it was during the lockdown.