Aim to target CVs to curb pollution; no plan to disrupt CNG infra: Delhi transport minister on EV Policy 2.0

The policy shall seek to drive rapid adoption of Battery Electric Vehicles (BEVs) so that they contribute to 25 percent of all new vehicle registrations by 2024 and bring about a material improvement in Delhi's environment.

Delhi Transport Minister Kailash Gehlot on October 20 said infrastructure has been updated to meet the requirements for the national capital to transition into the ‘EV capital of India’. In an exclusive interview with CNBC-TV18, the minister also claimed that the national capital will have the maximum number of e-buses in the country by 2025 with 8,000 such vehicles plying on the road.

Gehlot added that the move is necessary to tackle air pollution in Delhi besides other environmental benefits.

When asked about the rationale behind switching vehicles from CNG to battery-operated ones, the minister said that CNG is not a net zero-polluting mode of transport. At present, non-polluting and zero-emission modes of transport can only be offered by EVs, he added. Gehlot also said that hydrogen fuel technology will take a few years to be modified to be used in smaller vehicles given the volatile nature of its composition.

The minister said the AAP government has managed to reduce air pollution levels in Delhi by 20-30 percent since 2015 (when the party formed the government).

While declining to comment on whether CNG and petrol pumps will go out of business in Delhi by 2030, the minister said there is no such target to stop the sale of these fuels, but it is imperative that vehicles in the transport segment like autos and buses must be converted to EV to combat air pollution.

Elaborating on the high adoption cost of EVs, the minister said that the Delhi government has spent Rs 130 crore on EV subsidies to bring such vehicles under the reach of end users. “We are giving subsidies between Rs 30,000 and Rs 1,00,000 depending on the capacity of the battery,” he added.

The Delhi electric vehicle policy 2.0 will also have the subsidy provision; besides the government is also contemplating giving subsidies in case of retrofitting of ICE vehicles to EVs, Gehlot added.

Delhi Chief Minister Arvind Kejriwal on October 19 approved the much-awaited ‘Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme’, which legalises bike taxis and outlines comprehensive regulation and licensing of app-based aggregators and delivery service providers.

Under this scheme, bike taxi aggregators will be allowed to run their operations in Delhi legally provided they are electrically operated. It also states that the entire vehicle fleet of aggregators, delivery service providers and e-commerce entities in Delhi needs to shift to electric by 2030.

The policy also entails the induction of 5 percent EVs in fleets run by cab aggregators like Uber and Ola in six months, 50 percent in three years and the rest 100 percent in five years. The state government is also mandating 100 percent of all cab aggregators and delivery service providers to switch to EVs by the calendar year 2030.

The EV Policy 2.0, which has been sent to Governor VK Saxena for final clearance, aims to promote green and sustainable mobility in the city, while also enhancing the quality of transportation services.

Also read: Indraprastha Gas down 10% on EV policy; MFs, insurers take a Rs 681-cr hit in value

EV policy: Vision and Goals

According to the policy document, the primary objective of the Delhi Electric Vehicle Policy, 2020 is to establish Delhi as the EV capital of India and accelerate the pace of EV adoption across vehicle segments, especially in the mass category of two-wheelers, public/shared transport vehicles and goods carriers. The policy shall seek to drive rapid adoption of Battery Electric Vehicles (BEVs) so that they contribute to 25 percent of all new vehicle registrations by 2024 and bring about a material improvement in Delhi's environment by bringing down emissions from the transport sector.

The fiscal Incentives being offered under the policy would be in addition to the demand incentives available in the FAME India Phase-II scheme of the Government of India.