Why is Delhi’s EV policy 2.0 facing opposition?, Pg11

Key Highlights:

• Delhi's draft EV Policy 2.0 proposes a complete ban on new Internal Combustion Engine (ICE) three-wheeler registrations from January 1, 2027.
• The policy also aims to ban new ICE two-wheeler registrations from April 1, 2028, targeting the segment that constitutes 67% of Delhi’s registered vehicles.
• Electrification mandates are included for school buses (30% by 2030), fleet aggregators, and government transport fleets.
• Delhi achieved nearly 14% EV penetration by 2025 under its 2020 EV policy, surpassing the national average of 8%.
• Industry bodies like the Society of Indian Automobile Manufacturers (SIAM) oppose the timelines, citing production and infrastructure challenges.

Detailed Insights:

• Manufacturers express concerns about their ability to scale up electric vehicle production and the market's readiness due to high EV prices.
• Gaps in public charging infrastructure, including reliability issues, and resistance from Resident Welfare Associations (RWAs) for private charging are significant hurdles.
• Other challenges include a lack of competitive financing for electric light commercial vehicles, inadequate after-sales service, and declining resale values of used EVs.
• India's dependence on imported battery technologies, with the global supply chain concentrated in China, and high battery replacement costs are also flagged.
• Proponents argue that regulation, similar to Corporate Average Fuel Efficiency (CAFE) norms, is necessary to achieve cleaner air in Delhi.
• The policy aims to reduce the contribution of road transport to Delhi's severe winter air pollution.
• Think tanks suggest the policy must address the social justice aspect by mandating reskilling programs and providing financial support for small workshops transitioning to EV technology.
• Studies by World Resources Institute India (WRI India) and Center for Study of Science, Technology and Policy (CSTEP) indicate Delhi's electricity grid can handle increased EV demand with smart charging.
• The main grid challenge is strengthening local distribution infrastructure, such as transformers and feeders, rather than overall generation capacity.

Key Concepts Involved:

• Internal Combustion Engine (ICE): An engine that generates power by burning fuel within its cylinders.
• Electric Vehicles (EV): Vehicles powered by electric motors, using energy stored in rechargeable batteries.
• EV Penetration: The percentage of electric vehicles in the total vehicle fleet or new vehicle sales.
• Corporate Average Fuel Efficiency (CAFE) norms: Standards requiring automakers to achieve a certain average fuel economy across their vehicle fleet.
• Smart Charging: A system that optimizes EV charging by adjusting power flow based on grid conditions or user preferences.
• Time-of-Day Tariffs: Electricity pricing structures where the cost of electricity varies based on the time of day.