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Electric cars & bikes get cheaper in Delhi, road tax waived for EVs

Written by Nizam Shaikh

Through a Gazette Notification, The Government of the National Capital Territory of Delhi notified that it has waived off tax levied on all Battery Electric Vehicles with effect from 10th October 2020. Battery Electric Vehicles in Delhi are also exempted for road tax and registration fees. The rules of exemption are open for public opinion and objection and suggestion on the behalf can be addressed to the Secretary-cum-Commissioner of Transport of Delhi NCR. 

The decision is in-line with the Delhi Electric Vehicle Policy 2020 that was announced by Cheif Minister Arvind Kejriwal that focuses on the adoption of electric vehicles in the capital region by incentivising the purchase and usage of the EV. The new policy aims to register more than 5 lakh electric vehicles in Delhi by 2024. The incentives will be offered by State EV Fund incorporated with State Electric Vehicle Board chaired by Transport Minister Kailash Gehlot. 

The move is expected to increase EV registrations share in the city by 25% of total vehicles sold by 2024. The share currently stands at 0.2%. The new policy will not only encourage the buyer to go electric but also create a new ecosystem which will create new employment opportunities which includes driving, selling, financing, servicing and charging of EVs. The new policy will also lessen the harmful effects of petrol and diesel-burning vehicles in the National Capital.

In August 2020, Govt of Delhi announced that in addition to the ‘Scrapping Incentive’, INR 30,000 as incentives can also be availed for 2-wheelers, Autos, e-Rickshaws as well as incentives up to 1.5 lakhs for electric four-wheelers under the new EV policy. The Government of Delhi will also be setting up a dedicated ‘EV Cell’ to implement the new ‘electric vehicle policy’. 

The new EV policies will strengthen the Government Of India’s ‘Faster Adoption and Manufacturing of Hybrid and Electric Vehicles’ FAME a part of the National Electric Mobility Mission and under the FAME II scheme, Original Equipment Manufacturers that localise at least 50% of the parts ex-factory value are eligible to receive an incentive of INR 10,000 per kWh (kilo Watt hour).