Highlights of Delhi EV Policy (2019) – Incentives, Subsidies, Exemptions of Electric Vehicle Policy

by Narasimhan Santhanam

This post is a part of EV Next’s EV Perspectives.

EV Next, a division of EAI, is a leading market intelligence & strategic consulting firm for the Indian e-mobility sector.

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Objectives

• To improve Delhi’s air quality through transport emission reduction such that BEVs will contribute to 25% of all new vehicle registrations by 2023
•  Introduce measures to support job creation in driving, selling, financing, servicing and charging of EVs

Targets

Electric Vehicles: 25 percent of all new vehicle registrations by 2023 will be Battery Electric Vehicles (BEVs)

Public Transport

BEVs to make up at least 50% of the entire public transport system in Delhi by 2023 

Buses

• Induction of 1000 pure electric buses in 2019
• 50% of the public transport bus fleet zero emission by 2023

Charging Station

• Providing accessible public charging facilities within 3 km travel from anywhere in Delhi
• All existing residential building owners, Resident Welfare Associations (RWAs), Co-op Group Housing Societies, non-residential building owners and Market Associations with parking demarcated for more than 10 ECS will be encouraged to install one Bharat EV AC charger for every three ECS

Incentives

1. Demand Incentives

• For 2Ws, purchase incentive of 50 percent of Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India (FAME) incentive to be supplemented by top-up incentive of 50 percent of FAME incentive for 2Ws with swappable batteries. Maximum subsidy of up to Rs 29,000 per 2Ws.
• Existing non-electric 2W owners to get a scrapping and de-registration incentive of up to Rs 15,000 per vehicle for non BS IV vehicles, up to two years of the policy term.
• For e-autos, a purchase incentive of 5 per cent and increase in credit availability. And, existing non-electric rickshaws and autos to get a scrapping and de-registration incentive of up to Rs 15,000.
• When it comes to e-rickshaws, drivers and operators to get access to loans at 5 percent interest and a purchase incentive of 10 per centFor e-goods carriers, a purchase incentive of 50 percent of FAME incentive for first 5,000 registrations with advanced swappable batteries. Also, an exemption from prohibition on plying and idle parking of light goods vehicles during specified timings within the city.
• Public sector e-bus procurement has a target of 50 per cent of the fleet by 2023 and there will be incentives for operators of private stage-carriage vehicles
• Only high-powered vehicles (>250W) with lithium ion (and other advanced) batteries eligible for subsidy
• For the first 10,000 charging points, a 100 per cent grant for purchase and installation of up to Rs 30,000
• Tariff for private charging infrastructure: Rs 5.50 per kWh with time of day rebates
• For swapping, the BSOs will be reimbursed 100 percent of net state GST for purchase of advanced batteries

2. Other Taxes and Tolls

Waiver on road tax, registration fees, Municipal Corporation of Delhi (MCD) one-time parking fee and auto rickshaw permit fees for e-vehicles

3. Non-fiscal incentives

Electric 2Ws can be used for rentals and taxi services

Open permit system for approved e- autos, with no limits on the number of permits to be issued

App-based aggregators and taxi service providers to get cash back rebates for short first and last mile connectivity trips

Private charging infrastructure

Changes in building bye-laws to enable new charging infrastructure: All new non-residential buildings with parking space for more than 10 cars will need to have at least 20 per cent parking accessible to chargers and a 100 percent access in such residential buildings, co-op, group housing societies and colonies managed by Residents Welfare Associations (RWAs)

For existing residential building owners, RWAs and co-op group housing societies, as well as non-residential building owners and market associations with similar parking space, subsidy to install one charger for every three cars.

Other Significant Features

Recycling Ecosystem – Battery and EVs: Encourage the re-use of EV batteries that have reached the end of their life and setting up of recycling businesses in collaboration with battery and EV manufacturers that focus on ‘urban mining’ of rare materials within the battery for re-use by battery manufacturers.

Reuse of EV batteries

1. Energy Operators (EOs) and Battery Swapping Operators (BSOs) will be operate as end of life battery recycling agencies. EV owners can deposit vehicle batteries that have reached their end of life at any charging point or swapping station operated by an EO or BSO and in return get a remunerative price for this battery.

Disposal of EV batteries in any other manner – e.g., in landfills or as scrap, will not be allowed.

1. A nodal agency shall be appointed by GNCTD to act as an aggregator to purchase EV batteries that are at least 70% of rated capacity. These batteries will be purchased from EOs and BSOs and will then be reused as ‘power banks’ to store renewable energy. Batteries procured in such manner will be auctioned to renewable generators within and outside Delhi. The nodal agency shall publish purchase price of end of life batteries every month based on auction prices achieved and a margin for itself and the EO/BSO.

End-of-life battery and EV recycling

 EV batteries that cannot be reused, either because of poor condition of the battery or lack of demand for reuse, will be sent to recycling facilities. At these recycling facilities, high value battery materials (e.g., Nickel and Cobalt) will be recovered and then sold to battery manufacturers for re-use.

The Government of National Capital Territory of Delhi (GNCTD) will invite battery recycling businesses to establish a presence in Delhi. Appropriate protocols and investment subsidies for setting up such a business shall be notified by the GNCTD after consultation with stakeholders, especially battery and EV manufacturers. Battery recycling businesses will purchase end of life batteries from EOs and BSOs as per mutually agreed prices.

Read EV Next posts on electric vehicle policies for these states: Andhra Pradesh|Karnataka|Kerala|Tamil Nadu|Maharashtra|Telangana|Uttar Pradesh|Uttrakhand|

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