The Delhi government will soon come out with a policy that will incentivise people who shift from fossil fuel-powered vehicles to electric vehicles (EVs). This follows an announcement by Delhi transport minister Kailash Gahlot at the International Conference on Electric Vehicles - Future Roadmap for India event organised by Assocham in New Delhi today.

In his address, Gahlot said; “The cost of electric buses at Rs 2.75 crore is way too high and unsustainable, I would request the central government for more subsidy along with financial and technical help.”

He stated that since electric vehicles are all about charging, there needs to be clarity on power tariff which becomes very important for quoting the rates. “I think we should look towards subsidy on the power to be consumed by electric vehicles.” He added that it is  imperative to bring down the cost of electric vehicles to make it affordable and viable for public transport.

The transport minister also sought clarity on the Union government's FAME Scheme (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles), a program of incentives offered to EV buyers to help improve adoption and sales.

Addressing these concerns, he said, “Even under the FAME scheme, there are lot of gaps and there is lot of ambiguity. For instance, there is no clarity amid manufacturers when asked whether or not they would qualify in the kilometre scheme. More clarity in this regard will help us move swiftly.”

He further elaborated on the government’s intent for expediting procurement of electric buses for the national capital, and urged EV manufacturers to come forward and offer advice on the road ahead. “The Delhi government is very keen and more than willing to induct electric buses, we are open to every idea, suggestion which can help us place orders as fast as possible, we are absolutely ready.”

He stated that the challenge for the Delhi government is not just to bring in electric buses but also create the entire infrastructure and ecosystem. As such, he called upon industry leaders to provide for a complete solution instead of just focusing on selling electric vehicles.

The transport minister further said that while the Delhi government has already given a commitment to induct 100 electric buses, it is willing to increase the fleet to 1,000 as soon as possible. “If we have to really change the entire ecosystem and push this scheme then I wish the central government would have given the liberty to place 1,000 electric buses to each state,” he concluded. 

Also read: Government to support EV industry and offer consumer incentives: Amitabh Kant

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