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