EV Policies: NCR States Need To Focus On Overall Electrification Target, Says CAQM

At a time when the states, along with the Centre, are working to increase the adoption of electric vehicles (EVs) in the country through various policies, the Commission for Air Quality Management (CAQM) has said that state-wise EV policies across the National Captial Region (NCR) need to be more in sync with each other as the existing ones vary in their approach and scope.

In a report, the CAQM noted that unlike Delhi and Uttar Pradesh, Haryana’s policy does not have an overall electrification target. Haryana’s policy only aims to convert 100% of the buses owned by the state transport undertakings to e-buses by 2029, with the first phase of 100% conversion of the bus fleet to take place in Gurgaon and Faridabad by 2024.

Rajasthan’s EV policy also has no electrification target and recommends only a lump sum as an incentive for EV buyers. The incentive amount would depend on the battery capacity of the vehicles, the report said.

On the other hand, the Delhi EV policy, notified in 2020, targets 25% electrification of all new vehicle registrations by 2024.

“This policy also aims to register a minimum of 50% of all new stage carriage buses as e-buses, including both city fleet and fleet for last mile connectivity. All delivery service providers shall convert 50% of their fleet operating in Delhi to electric by 2023 and 100% by 2025,” the CAQM said in its report.

The CAQM was set up for Air Quality Management in NCR and adjoining areas for better coordination, research, identification and resolution of problems surrounding air quality index and for matters connected therewith. 

The report by CAQM’s expert group, which includes P. Raghavendra Rao, chairman of Haryana State Pollution Control Board, Arvind Nautiyal, member secretary of CAQM, among others, not only mentioned the differences in EV policies of the states in NCR but also suggested that vehicle electrification targets by each of the states need to be set in terms of percentage of the new vehicle sales to be achieved by the end of the plan period.

Talking about Uttar Pradesh, the CAQM noted that the state’s EV policy targets to have nearly 10 Lakh EVs, combined across all segments of vehicles, by 2024. However, “there is no vehicle segment-wise target for the state to support this roll-out”.

It said that a quick gap analysis can be carried out for further amendment and the targeted roll-out. 

“It is necessary for all state programmes to set timebound quantifiable targets for overall electrification and vehicle segment-wise electrification target, define strategies for creating dedicated fund to support the incentive programme and adopt a cross subsidy model in a revenue neutral manner and detail out the scope of action that is verifiable and measurable,” it added. 

Many state governments, including those in NCR as well as others such as Maharashtra, Kerala, Gujarat, have come out with EV policies to incentivise their adoption to reduce upfront cost.

This is a significant step to enable the EV industry to compete with the internal combustion engine (ICE) vehicle sector.

Last week, Chhattisgarh Chief Minister Bhupesh Baghel approved Chhattisgarh Electric Vehicle (EV) Policy 2022 that aims to have 15% of newly registered vehicles, including both individual and commercial vehicles, as EVs within five years. It also plans to provide reimbursement of state goods and services tax (SGST) on the sale of e-buses, manufacturing of EVs, and for the energy operators on the purchase of batteries.

In June, Haryana Chief Minister Manohar Lal Khattar approved the New Haryana State Startup Policy 2022. Among others, the policy aims to provide employment generation subsidies of INR 48,000 per employee per annum for 10 years if Haryana domiciled manpower is employed in EV companies.

In its report, the CAQM said that the new generation transformation towards electrification is aimed at achieving zero tailpipe emissions with battery-operated vehicles. 

“On the basis of lifecycle emissions, it is estimated that tailpipe emissions account for as much as 65-80% of automobile emissions. According to an estimate of NITI Aayog, despite India’s current energy mix, lifetime emissions from electric vehicles today are 19-34% lower than internal combustion engines,” the report said.

As per a report, largely driven by the government incentives to encourage EV adoption, India’s EV market size is expected to expand at a compound annual growth rate (CAGR) of 94.4% between 2021 and 2030. The market was valued at $220.1 Mn in 2020.