Revolution of EV - How the Delhi EV Policy is helping drive Sustainable Transportation

By Anmol Jaggi, Co Founder, BluSmart

Transport is among the fastest-growing sectors in India and is a major contributor to global greenhouse gas emissions. Globally, it is responsible for 25% of total carbon dioxide emissions. In India, it is the third most CO2 emitting sector, and within the transport sector, road transport (carrying goods and passenger transport) contributes to more than 90% of total CO2 and NOx emissions. Delhi is in pollution’s ever-tightening chokehold and the transport sector contributes to a third of all PM 2.5 emissions, causing catastrophic health harm.

In August 2020, the Government introduced the Delhi Electric Vehicles Policy, which the Chief Minister, Mr. Arvind Kejriwal described as a big step toward curbing the pollution levels in the city. The Policy paves the way for disruption in the transport sector, EV penetration, and pollution control. Within just two years of notifying its policy, Delhi has emerged as the EV Capital of India with an EV share of 12.5% - in contrast, the all India average is currently only 1.6%. The aim of the policy is to sustain Delhi as a leading state in EV and further accelerate the pace of EV adoption across vehicle segments, especially in the mass category of two-wheelers, shared transport vehicles, and goods carriers.

Generous subsidies and tax redemption:

The EV policy provides attractive subsidies and exemption of registration fees and road tax for all EVs. The process of availing of subsidies is completely online and hence is hassle-free and paperless. These efforts have come as an enabler for the EV industry.

Shared mobility service providers in the city like us feel that the provisions of Delhi’s EV Policy were critical in giving a big push to EV adoption in shared mobility. The Indian shared mobility market is poised to grow to $4 billion by 2025. Delhi, which accounts for 20% of the share, the highest of all cities, has been a destination of choice for shared mobility companies. BluSmart, India’s first all-electric ride-hailing platform, began as a 70 EVs experiment in Delhi in 2019. Today, it has over 1500 EVs with another 5000+ EVs to be added in FY 22-23.

Low Electricity tariff:

In 2017, Delhi was the first state to introduce a separate electricity tariff category for EVs. At Rs. 4.5/KWH, it is one of the cheapest in India. This step was taken to boost the charging infrastructure and has helped in the expansion of charging networks in the city, cutting the range anxiety, and hence bringing EVs closer to being an accessible ride-hailing option for commuters. This has also highly reduced the EV running cost.

Our experience shows that the operational running cost of EV in Delhi is 1/3rd of the running cost of a CNG-operated car and 1/5th of the cost of running a diesel car. Considering that the transport sector accounts for 18% of total energy consumption in India, this translates to an estimated 94 million tonnes of oil equivalent (MTOE) energy.

Opportunity to Contribute:

Delhi's EV Policy has set a goal for a 25% share of EVs in all new vehicle registrations by 2024. But offering a reliable, affordable, and sustainable e-mobility to the people of Delhi and thus, help improve the quality of life in India’s most populous city, calls for more than a sound policy but also the commitment of all stakeholders. This is where the Delhi EV Forum hosted by the Dialogue and Development Commission (DDC), the think tank of the Delhi government, plays a crucial role in bringing all stakeholders of Delhi's EV ecosystem together every six months to collectively address challenges in implementation.

Though there is a conducive environment in Delhi for the growth of the EV industry, its success hinges a lot on factors like the financial viability of public charging stations. To a large extent, the success of shared mobility companies is also important in decarbonizing the transport sector with zero tailpipe emission cars – that is, EVs that emit zero particulate emissions.

These companies can go for an asset-light model which means the drivers do not have to own the EV or carry the financial burden of owning an expensive asset like an EV. The earnings of drivers must be attractive enough for many others to join the network.

All these pieces must fall in place to make hailing an EV affordable, thus, making Delhi’s air cleaner possible for the citizens. We believe that Delhi's EV Policy can play a major role in reviving the economy of India and making Delhi pollution-free.