Delhi policy likely to boost EV sales

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Electric Vehicle
To boost the sale of electric vehicles in the national Capital, the Delhi Government recently came up with an EV policy which won kudos, from across the industry. With a slew of incentives, rebates and tax benefits to offer, the policy is expected to give a big push to tepid EV sales in Delhi. Besides, the policy is being applauded for having set an example for other states to follow.

Source link: https://www.energybite.co.in/blog-post/delhi-policy-likely-to-boost-ev-sales/

The vital role that electric vehicles (EVs) play in promoting cleaner air and a greener environment is by now well understood by people at large. Alongside, the host of benefits such vehicles provide is exciting the imagination of potential buyers. Still, the EVs are not topping the purchase charts in the country, and the reasons for that are aplenty.

Among the primary reasons for their subdued sales are high purchase cost and almost non-existent charging infrastructure. Though things are gradually improving on the charging front, the Centre and various state governments are trying to push EV-buying by offering tax reliefs and other incentives. The FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles) Scheme, which is running in its second phase now, is a significant step taken by the Centre in this regard.

Joining in such efforts and with a view to checking high level of environmental pollution caused by motor vehicles in the NCR, the Delhi Government on August 7 launched the ‘Delhi Electric Vehicle Policy’ which was hailed by EV makers as a step in the right direction. Besides encouraging adoption of clean energy vehicles in the national Capital, the policy is likely to set an example for other states to follow.

  • Alongside, the host of benefits such vehicles provide is exciting the imagination of potential buyers. Still, the EVs are not topping the purchase charts in the country, and the reasons for that are aplenty.
  • The three-year policy aims to benefit EV buyers with purchase incentives, scrappage benefits on older vehicles, interest subvention on loans and waiver of road tax and registration fees.
  • The state government has set up a separate state EV Board, an EV Fund and an EV Cell to boost the usage of electric vehicles Delhi. The focus of the Delhi EV policy remains on the infrastructure development.
  • Significantly, the policy stands true exclusively for battery-operated electric vehicles cars and does not include in its ambit mild hybrid, strong hybrid and plug-in hybrid electric vehicles.

The three-year policy aims to benefit EV buyers with purchase incentives, scrappage benefits on older vehicles, interest subvention on loans and waiver of road tax and registration fees. To disown the crown of being India’s most polluted city, Delhi Government’s policy provides a host of financial incentives for buying electric vehicles in the Capital, over and above the subsidies being provided under the FAME-II.

The policy is expected to not only help in boosting the Capital’s economy, but also create more jobs and contribute towards a cleaner environment. The state government has set up a separate state EV Board, an EV Fund and an EV Cell to boost the usage of electric vehicles in Delhi. The focus of the policy remains on the infrastructure development as the Government expects approximately five lakh electric vehicles to get registered in the next five years. It plans to set up 200 EV charging stations in a year within a distance of three km each, across the state.

Among the other key offerings of the Delhi EV policy are: a battery-capacity linked subsidy of Rs 5,000/kWh or up to Rs 30,000 for electric two-wheeler purchase. For electric four-wheelers, the policy offers a subsidy of up to Rs 1.5 lakh. For electric autos, e-rickshaws, and electric freight vehicles, it has Rs 30,000-subsidy to offer. Additionally, the Delhi Government has also waived road tax and registration fees on all new purchases of electric cars and bikes.

Significantly, the policy stands true exclusively for battery-operated electric vehicles cars and does not include in its ambit mild hybrid, strong hybrid and plug-in hybrid electric vehicles.

But with such bounteous an offering on the EV platter, it is obvious that the Government of Arvind Kejriwal is hopeful that the sales of electric vehicles will spurt in the national Capital in the years to come. Reasonable hopes, we suppose!