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Delhi’s 2020 Electric Vehicle Policy: BEVs to Increase to 25% by 2024

On August 7, 2020, the Government of National Capital Territory of Delhi (GNCTD) introduced “The Delhi Electric Vehicles Policy, 2020.” The policy went into effect immediately and will be applied for three years until August 2023. The Delhi government, led by the Aam Aadmi Party (AAP), has set a target of BEVs accounting for 25% of all new vehicle registrations (including motorcycles) by 2024. Delhi’s new BEV policy is set to achieve this target.

Delhi’s BEV policy will be implemented in parallel with the FAME-India Phase 2 (FAME-2) scheme, a measure by the central government to promote the use of electric vehicles. Subsidies of both measures may be used to purchase BEVs. The purchase subsidy of Delhi’s BEV policy is set at 5,000 INR per 1kWh of battery capacity for motorcycles, but limited to up to 30,000 INR. For passenger vehicles, the subsidy is set at 10,000 INR, but the upper limit is 150,000 INR. Looking at an entry model such as the Tata Tigor EV compact sedan, more than 300,000 INR will be provided in subsidies together with FAME-2, reducing the selling price to less than 1 million INR. Regarding the development of charging infrastructure, the new policy makes it mandatory to secure space for installing chargers in new buildings, and it also stipulates the introduction of chargers in existing buildings. A maximum of 6,000 INR per unit will be provided to support the introduction of charging equipment. In addition, there are plans to install public charging stations every 3km throughout Delhi.

Delhi: Overview of Delhi Electric Vehicles Policy, 2020

Overview of The Delhi Electric Vehicles Policy, 2020

・On August 7, 2020, the Transport Department of the Government of National Capital Territory of Delhi (GNCTD) introduced “The Delhi Electric Vehicles Policy, 2020.” – The Delhi government recognizes the need for a new approach, saying that battery electric vehicle (BEV) use has not reached expectations. For this reason, the city has approved and introduced a comprehensive BEV measure. This BEV policy has been discussed based on the “The Draft Delhi EV Policy 2018,” announced in November 2018. It was promulgated on August 7, 2020 based on the Cabinet Decision No.2796 dated December 23, 2019, and came into effect immediately. It will be in effect for 3 years from the August 2020 to August 2023. – This BEV policy focuses on the promotion of electric motorcycles, public transport, sharing vehicles, and freight vehicles. It also aims to create jobs in areas related to driving, selling, financing, servicing and charging of BEVs. – The Delhi government, led by the Aam Aadmi Party (AAP), has set a goal of 25% of all new car registrations will be BEVs by 2024. – The incentives of this BEV policy will be added to the benefits of India’s national BEV promotion measure FAME-India Phase 2 (FAME-2). Incentives include purchase subsidies, scrappage incentives, subsidies for loan interest rates, road tax and registration fee exemptions. In an effort to promote BEV use, BEV charging equipment and battery exchange stations will be set up, and a public information database related to this infrastructure will be created. In addition, Delhi will raise awareness and education on BEV use, support employment in the BEV ecosystem, improve recycling of BEV batteries, set up “State EV Fund,” and increase taxes on vehicles with heavy environmental impact (diesel / gasoline).

Purchase support measures for electric two wheelers

・For motorcycles, a subsidy of up to 30,000 INR will be provided for the purchase of BEV models that meet requirements. Scrappage incentives of the buyer’s old motorcycle will be also provided. – Requirements which are identical with those of FAME-2 are that models must be equipped with advanced batteries, have a minimum speed of 40km/h, minimum acceleration of 0.65m/s2, electricity cost of 7kWh/100km or less, manufacturer’s warranty of 3 years or more (including battery). However, some specifications are different from those of FAME-2. Driving range is not specified, covers both domestic and imported models and monitoring device for energy consumption is not required. – Motorcycle manufacturers must register a BEV models (rechargeable / battery replaceable) that meet the above requirements with the Delhi government. – The purchase subsidy amount, based on battery capacity, is 5,000 INR/kWh as drafted in November 2018. It is half compared to FAME-2’s subsidy amount is 10,000 INR/kWh. The upper limit is set at 30,000 INR. – Recipients of the above purchase subsidies (BEV buyers) can obtain scrappage incentives. Owners can receive up to 5,000 INR by deregistering and scrapping motorcycles equipped with internal combustion engines in Delhi. The November 2018 draft stated a maximum of 15,000 INR, but it has been reduced. ・Delhi has also set support measures for service providers that utilize electric motorcycles. – Ride-hailing service providers are allowed to provide taxi services using electric motorcycles, subject to the Delhi government’s guidelines. – Delivery service providers (food delivery, e-commerce related delivery, etc.) will be encouraged to adopt electric motorcycles. The Delhi government aims to increase the share of electric motorcycles in delivery fleets to 50% by March 31, 2023 and to 100% by March 31, 2025. Delivery service providers committed to these goals will be eligible for financial support through the Delhi Finance Corporation (DFC).
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