Delhi government's EV policy offers financial incentives of up to Rs 1.5 lakh
Electric vehicles (EVs) are all set to get a big bang push in and around Delhi with the Delhi government’s recent unveiling of the electric vehicle (EV) policy that is aimed at promoting electric vehicles in the Delhi-NCR region. The Delhi’s government electric vehicle policy will waive registration fee and road tax as well as dole out financial incentives of up to Rs 1.5 lakh on purchase of electric vehicles – more importantly, the benefits offered under this scheme will be applicable over and above the central government’s FAME II scheme. Further, commercial electric vehicle buyers will get interest waiver on loans. As part of the EV policy, two-wheelers will receive a subsidy of Rs 30,000 while auto rickshaws, e-richshaws and freight carriers will receive a subsidy of Rs 30,000. The biggest gainer will be the four-wheeler segment that will receive a subsidy of Rs 1.5 lakh.
The Society of Manufacturers of Electric Vehicles (SMEV) – the industry body for electric vehicles in the country – hailed the Delhi government EV policy. “The policy will provide a big thrust to the overall EV ecosystem. Customers who were earlier unable to avail the FAME II scheme benefits owing to some restrictive norms will now get an opportunity to avail subsidy under this scheme. The policy has a defined target and timeline that has potential to make the capital one of the leading states in terms of electric vehicle adoption. Most importantly, this policy will provide more push to the existing EV architecture than the current FAME II scheme. The policy will set a benchmark for other states to follow as until now polices have surrounded around attracting manufacturers rather than catalysing demand,” said Sohinder Gill, Director General, SMEV and Global CEO, Hero Electric.
Gill also talked about one missing link in the EV policy. “The policy does not support lithium battery e-scooters with speeds upto 25km/hr. These e scooters are particularly popular with Delhites because of their attractive prices and extremely low running costs. With a bit of support of the Delhi government the adoption of such e scooters would have grown multifold. We hope the government would look into it and make some amendments in the future,” he pointed out.
Tarun Mehta, CEO & Co-Founder, Ather Energy, said the policy would do a world of good to the country EV ecosystem. “The policy addresses the issues of accessibility for the end consumer. The additional subsidy makes EVs more affordable across the board and offering it to higher performance vehicles, will ensure that end consumers will actually purchase and use these vehicles. Delhi has taken a holistic approach to their policy, taking into account charging infrastructure, different automobile models and scrappage of old ICE vehicles.”
Pankaj Tiwari, Business Head, Nexzu Mobility India, said the EV policy has come at the right time for this segment, which has been reeling under pressures of the recessionary conditions from last year followed by the onslaught of the COVID-19 pandemic which necessitated the phases of lockdown. He added that the consumer focussed incentivisation will bring the different categories of electric vehicles in the consideration set of buyers, who were shying away so far. The waiver on registration fee, road tax, and incentives ranging from Rs 30,000 up to Rs1.5 lakh to 2-wheelers, autos, e-rickshaws and freight vehicles commercial vehicles and cars, apart from low-interest loan on electric commercial vehicles, symbolises the government’s democratised approach to accelerate adoption of EVs across categories in Delhi's economy, he noted.
Clearly, the Delhi government's EV policy will provide a much-needed boost to the country's EV ecosystem.