Delhi's EV policy aims to electrify 50% of 2-wheeler delivery fleet by 2023

The Delhi government's new electric vehicle policy envisages incentives to cut to 50 per cent by March 2023 fleet of petrol-powered two-wheelers used by delivery service providers in the city.

Chief Minister Arvind Kejriwal, who launched the Delhi Electric Vehicle Policy on Friday, sought the cooperation of all stakeholders in implementing it.

"I am glad Delhi's EV policy has been well received by all stakeholders. It was prepared after wide-ranging consultations spanning over a period of more than 2 years. Now, I seek everyone's cooperation in successfully implementing it," he tweeted on Saturday.

It is expected that the incentives will encourage delivery service providers like those engaged in food delivery, e-commerce logistics and courier services to switch to using electric two-wheelers, the EV policy stated.

"To ensure the switch happens in a time-bound manner, all delivery service providers shall be expected to convert 50 per cent of their fleet operating in Delhi to electric by March 31, 2023, and 100 per cent by March 31, 2025," it said.

The delivery service providers who commit to achieving these targets will be eligible for financial support from the Delhi Finance Corporation (DFC), according to the policy for the two-wheeler segment.

Two-thirds of new vehicle registrations in Delhi comprise two-wheelers, with the most popular segments being motorcycles between 110-125 cc and scooters between 90-125 cc.

"Any attempt at electrification of Delhi's vehicle fleet needs to address these segments to achieve significant reduction in air pollution," the policy said.

Ride-hailing service providers will be allowed to operate electric two-wheeler taxis, subject to operating within the guidelines to be issued by the Transport Department of the Delhi government, it said.

The demand generation incentives for two-wheelers offered under the policy will be based on battery capacity (energy content measured in kWh) used in vehicles.

"The incentives will be available only for the electric two-wheelers with advanced batteries and subject to a maximum incentive of Rs 30,000 per vehicle," according to the policy.

The electric two-wheelers will have to fulfil the performance and efficiency eligibility criteria, including the minimum top speed of 40 km/hour, to avail the incentive.

According to the policy, these eligibility criteria are aligned with those existing in FAME India Phase II for electric two-wheelers.

However, they will exclude other conditions such as no limit for minimum vehicle range, no mandatory requirement of local manufacturing, and no requirement for vehicles to be fitted with suitable monitoring devices to determine the total fuel savings on a real-time basis.

A purchase incentive of Rs 5,000 per kWh of battery capacity will be provided per vehicle to the registered owner of an electric two-wheeler that will up to Rs 30,000 per vehicle, the policy said.

Registered owners of electric two-wheelers will also be eligible for an incentive for scrapping and de-registering old two-wheelers in Delhi.