Delhi Government Announces New Electric Vehicle Policy

Daniel Fowler
August 9, 2020

Delhi regularly features in the list of most polluted cities in the world and a need to reduce vehicular pollution has been felt for long.

The policy makes a case for incentives of up to ₹1.5 lakh for the purchase of new electric cars in the city capital.

"Delhi Government sends a proposal to Lieutenant Governor Anil Baijal recommending to open hotels, gyms and weekly markets, citing fall in the number of COVID-19 cases in the national capital", sources in the government stated, adding that it was the Delhi government's "right to decide" to lift restrictions in line with the MHA orders.

The Delhi government has rolled out a new "Electric Vehicle Policy" that is aimed at boosting the economy battered by COVID-19 and resultant lockdowns, and to also reduce pollution. Buyers of electric scooters, e-rickshaws and e-goods carriers will be elegible for an incentive of up to Rs 30,000. Till 2024, 25% of the vehicles registered in Delhi would be electric.

The Delhi government said it will also set up a separate state EV board, EV Fund and EV Cell to boost the usage of electric vehicles in the state.

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It has been created after studying similar policies across the world and after consulting with experts. He said that the objective is that by 2024, 25% of all new vehicle registrations should be for EVs. The government plans on setting up 200 EV charging stations in the capital over the next year.

Under this policy, the Delhi government will offer a purchase incentive of Rs 5,000 per kWh of battery capacity compared to Rs 5,500 now offered by Delhi Pollution Control Committee.

Not only the financial benefits, under the Delhi EV Policy, Registration tax or road tax will be exempted for the electric vehicles while the commercial electric vehicle buyers will get interest waiver on loans.

The Delhi government has also planned for steps to improve the infrastructure and awareness around EVs with this policy. The Delhi government will provide a 100 percent subsidy for the purchase of charging equipment costing up to Rs 6,000 per unit for the first 30,000 charging points at homes and workplaces. Besides that, there will be a scrapping incentive of up to Rs 5,000, subject to evidence of matching contribution from the manufacturer or dealer.

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