The Delhi government rolled out its electric vehicle policy on Tuesday. It hopes that this policy would ensure that at least 25 percent of all new vehicle registrations by 2024 are of electric vehicles. The Kejriwal government is targeting the inclusion of 35,000 electric vehicles by 2024.
The policy provides an approximate subsidy of Rs 10,000 for an electric two-wheeler with a two kilo-watt battery.
In a first, a scrapping incentive of Rs 5,000 is also offered. The policy allows ride-hailing services to operate electric two-wheeler taxis.
E-autos under this policy would get a subsidy of Rs 30,000 along with a 5 percent interest subvention on loans. Electric cars could get a subsidy of up to Rs 1,50,000.
The Delhi government is looking to set up at least 250 charging points in the national capital and promote electric vehicles for private use as well.
The policy has allocated a subsidy of Rs 6000 for purchase of charging equipment for homes and workplaces.
To discuss the policy CNBC-TV18 spoke to Jasmine Shah, vice chairman of the Delhi Dialogue and Development Commission and Mahesh Babu, CEO of Mahindra Electric.
Shah said, "The estimated cost of this entire policy at this moment is in the range of Rs 400-500 crore over the next 3 years. Just to give a sense of comparison, the entire National Clean Air Programme of the government of India is budgeted for Rs 400 crore. However, Delhi government has gone ahead and committed and this is a provisional estimate because eventually, we are committing that we would like one out of every four vehicles in Delhi to be an electric one by 2024."
Babu said, "What will happen is this gap of Rs 30,000 which is being given by the Delhi government will bridge the gap between the regular CNG auto and the electric auto. Now with this incentive, the electric auto or Mahindra Treo will be almost at the same price as the CNG autos. So, this is going to help adoption very fast."