Moneycontrol
Feb 12, 2018 04:28 PM IST | Source: Moneycontrol.com

Policy for electric vehicles likely to follow Transport for London model

The policy for electric vehicles is expected to be drafted in consultation with union ministry of petroleum and natural gas and union ministry of heavy industries and public enterprises.

Nikita Vashisht @nikita_vashisht
Representative image
Representative image

The Centre will soon bring out “foolproof” policy for electric vehicles on the lines of “Transport for London” model, Nitin Gadkari hinted while talking to Moneycontrol.

“Our department has signed an agreement with the transport department of London (Transport for London)… A conference was held with transport ministers and we presented the London model to them. A lot of people are thinking in that direction to adopt the policy using that model,” Gadkari told Moneycontrol.

The union ministry for road transport and highways  signed a Memorandum of Understanding (MoU) with TfL early last month to improve public transportation system in the country.

“The MoU can increase the use of electric vehicles in public transport…,” he had said while addressing the media after signing the MoU.

Also read: Govt may release draft auto policy in two months: Heavy Industries Minister Geete

Transport for London follows various models to manage traffic congestion in Greater London. The models follow “strategic” combinations “to represent the different decisions that an individual makes when planning a journey”. TfL applies London Transportation Studies (LTS) as an umbrella model, having sub-models suitable for various mode of transport.

TfL includes models to handle congestion on railway lines (Railplan), highways (LoHAM), state and regional roads (LonLUTI) and cycle routes (Cynemon).

Gadkari said that India's policy will be made with assistance from World bank.

"The model is being developed in consultation with the World bank," he said.

The minister also said that the model has nine operators who provide drivers for the transportation system. The conductors for the system belong to corporation or state.

Policy guidelines for electric vehicles has been in limbo for a long time, keeping automobile sector on wait and watch mode.

Experts and auto-majors have voiced the need for a clear policy roadmap to usher in the change that the government intends to make in the country.

Also read: Bulldozer, E-vehicles and BS-VI: Gadkari must bring 'clear' vehicle policy soon, feel experts

“In order to stitch up a strategy (for EV segment), we are requesting to have a roadmap regarding plans of charging stations... Without a clear policy, it will be difficult to select models,” Honda Cars India (HCIL) President and CEO Yoichiro Ueno told reporters at a recent event.

Auto-analysts and makers were betting on Budget 2018 to provide policy guidelines for electric vehicles and related infrastructure. It, however, found no mention in the government’s yearly account document.

When Moneycontrol asked about the same from the union minister, he said that Centre “doesn’t need to tell anything to the auto-industry”.

“We don’t need to tell anything to the auto-industry. The decision has already been taken by the government regarding electric vehicles… This is the policy,” Gadkari said.

Centre intends to increase the penetration of electric vehicles in India from current one percent to at least 40 percent by 2030; specifically the new models being sold after 2030 have to be fully electric. This target translates to 4 million electric cars considering India becomes 10 million cars a year market by 2030.

Of the one percent EVs in India, 95 percent are low speed scooters. Furthermore, against three million fuel based cars in India, there were merely 2,000 electric cars in 2016-17. The number stand at 23,000 for e-scooters against more than 16 million fuel based two-wheelers.

The policy for electric vehicles is expected to be drafted in consultation with union ministry of petroleum and natural gas and union ministry of heavy industries and public enterprises.

Anant Geete, union minister for heavy industries, said at the Auto-Expo inauguration that the government would release the draft of a new auto policy “aimed to address issues faced by the industry in the wake of emergence of new technology such as EVs”.

Gadkari has also said that the policy will be “brought out by Petroleum ministry”.
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