Delhi Govt Extends EV Policy Until Dec 31

In a significant decision, the Delhi cabinet has extended the Delhi Electric Vehicle Policy until December 31, 2023, or until the notification of Policy 2.0, whichever occurs earlier. This extension period will include the continuation of all incentives and subsidies outlined in the existing policy.

“The Delhi Cabinet, led by CM @arvindkejriwal, has given its approval to extend the existing Delhi Electric Vehicle Policy until December 31, 2023, or until the notification of Delhi EV Policy 2.0, whichever comes first. All existing incentives, including subsidies, will remain in effect. Delhi EV Policy 2.0 is in its final stages and will be notified soon after the necessary approvals,” Delhi Transport Minister Kailash Gahlot wrote on X.

Previously, Gahlot had disclosed that two vehicle aggregator schemes introduced for public feedback in May 2023 are now in the final stages of approval by the relevant authorities.

Gahlot remarked, “I am pleased to inform you that the two Aggregator schemes, namely the Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme 2023 and the Delhi Motor Vehicles Licensing of Aggregator (Premium Buses) Scheme 2023, which were made public for feedback in May 2023, are now in their last stages of preparation.”

The Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme aim to establish clear guidelines for ride-hailing and delivery service aggregators, with a particular focus on transitioning to electric vehicles (EVs) by 2030. It also intends to introduce regulatory provisions for bike taxis and rent-a-bike services. Once this scheme is formally approved, aggregators will be required to progressively shift their fleets to electric vehicles.

The Delhi Electric Vehicle Policy has a primary objective of enhancing Delhi's air quality and establishing a comprehensive supply-chain ecosystem for electric vehicles. To significantly improve air quality in Delhi, the policy aims to have 25 per cent of all new vehicles operating on battery power by 2024.

Delhi EV Policy

The Delhi EV Policy which was implemented in 2020, expired on August 7, 2023, leading to a brief vacuum during which the registration of all categories of EVs was halted for two days in the Capital, forcing the government to extend the provisions of the policy till further orders.

This one of the flagship plans of Delhi’s Aam Aadmi Party (AAP) government—was aimed at fighting high levels of air pollution in the city by cutting vehicular emissions. The policy sought to achieve this objective by bringing about a paradigm shift in the Capital’s transport sector by introducing two key changes.

One, the state government embarked on a major switch from Compressed Natural Gas (CNG)-run public buses to electric buses. Of the total 3,700 buses run by the Delhi Transport Corporation (DTC), the Capital now has 800 electric buses. And, the government has committed to buy only electric buses to replace the CNG ones that will be retired from the fleet.

The second major change was encouraging residents to switch to electric vehicles by providing subsidies. The policy has set a target of 25 per cent of all new vehicles registered in Delhi to be electric by 2025.

Under this, two-wheelers are entitled to a subsidy of INR 5,000 per kWh of battery capacity (maximum INR 30,000). Three-wheelers can get a subsidy of INR 30,000 per vehicle, irrespective of the total cost and battery capacity. The subsidy for four-wheelers is not applicable anymore as it was offered only for the first 1,000 e-cars that would get registered under the scheme. For four wheelers, Delhi government had allowed subsidy of INR 10,000 per kWh battery capacity, subject to a maximum of INR 1.5 lakh.

Between August 2020 and June 2023, a total of 129,000 EVs were purchased in the capital. Currently, Delhi has more than 4,500 charging points and 250 battery swapping stations, many of which were set up on the public-private-partnership model.

Uttar Pradesh 

Meanwhile, Uttar Pradesh government has also decided to extend the subsidy on purchase of electric vehicles for one more year. The Industrial Development Department has proposed to the government to extend the subsidy by one more year under the Electric Vehicle Manufacturing and Mobility Policy-2022, Infrastructure and Industrial Development Commissioner Manoj Kumar Singh said.

It is noteworthy that the Cabinet had approved the Electric Vehicle Manufacturing and Mobility Policy-2022 on 13 October 2022. Under the policy, a provision for a discount of INR 5,000 on the first two lakh two-wheeler EV vehicles and up to INR 1 lakh on the purchase of the first 25,000 four-wheeler EV vehicles was made.

Similarly, earlier a subsidy of up to INR 1 lakh per vehicle was given on the purchase of one thousand e-goods carriers. At the same time, it was decided to give a subsidy of INR 20 lakh each on the purchase of the first 400 EV buses purchased in the state.

Conclusion:

In a forward-thinking move, the Delhi government has decided to extend the Delhi Electric Vehicle Policy, ensuring the continuation of incentives and subsidies that have played a pivotal role in promoting electric mobility in the capital. This extension reflects a strong commitment to clean energy and environmental sustainability.

It sends a positive signal to the citizens and the automotive industry that electric mobility is not just a passing trend but a long-term strategy. The inclusion of existing incentives and the upcoming Policy 2.0 underscores the government's ongoing support for electric vehicles. This move not only benefits the environment but also positions Delhi as a leader in the transition to electric transportation in India.