On the surface level, the policy seems like one that is concerned about electric vehicles. In essence, the policy is much more than that. Public health, industry restructuring, energy security, employment generation, and the future of Indian cities are some of the other things it encompasses.
The goal set forth by Delhi is a daunting one. The policy aims at making sure that most of the newly registered vehicles in the city become electric within the next few years with the support of a significant investment of Rs 15,000 crore within a period of four years. Perhaps, what is more important is that the policy integrates incentives with a timeline of transition, charging stations, and high utilization vehicles.
It is important to understand the fact that the Indian electric mobility revolution has passed from the stage of “Will the Electric Vehicles Work?” into the stage of “How Fast Will We be Able to Build the System?” And the Delhi policy provides us with an answer.
And by formulating a very clear roadmap for the transition to electrification, Delhi has provided the industry with clear signals that there is no turning back anymore and that the transition is enormous from the point of view of automobile producers, policy predictability is as essential as incentives. They begin to make investments only when there is a clear vision of market stability inevitable.
The importance of such a decision goes far beyond mere vehicles sales.
With every EV being sold, there appears a whole new infrastructure system which requires investments and employment.
India’s transition to clean mobility can turn out to be one of the largest generators of green jobs in the country within the next decade.
This policy also has significant impacts for India’s manufacturing strategy.
Although Delhi itself is not a manufacturing center, it is among India’s biggest mobility markets. Demand in large cities can impact the way investments are made elsewhere in industry. If there is strong demand from Delhi, then manufacturers will be motivated to increase their production, localize their supply chains, implement advanced technologies and expedite research and development.
In a way, demand-side policies like the ones used in Delhi can become major drivers of India’s manufacturing system.
One of the biggest features of the policy in question is its emphasis on commercial mobility. High-kilometer segments including auto rickshaws, delivery vans and other commercial transport account for a disproportionate amount of pollution in cities. Electric vehicles can provide the fastest way of achieving gains both economically and environmentally.
For businesses, electric vehicles become a commercially viable solution because of the low costs of operation. Meanwhile, the city itself gets clean air and noise reduction.
However, the policy’s success will depend on execution.
The charging infrastructure should ramp up fast too. Fleet charging facilities, battery exchange facilities, and even MW-level charging facilities for commercial vehicle operations will require rapid scaling. Finance solutions for small businesses and gig workers will also be required to ensure inclusivity and equity within the transition and avoid placing undue costs on livelihoods.
It is here that the lessons from Delhi’s policies can help the rest of the country understand that energy transitions have to be just transitions. They are not only transitions into new technologies but much more than that.
Delhi’s experiences will be closely followed by policymakers across the country.
In much the same way that California’s zero emissions regulations have driven car manufacturers around the world, Delhi’s EV Policy 2.0 has the possibility of driving India’s city transport policies for years to come.
The policy, as a result, is more than just an environmental initiative. It is an economic policy and industrial strategy, a public health initiative, and a dream of how India’s cities can be transformed over the next decade.
Electrification will certainly have its obstacles on the way ahead. However, Delhi has made one thing clear it is choosing to take the lead rather than follow.
By doing so, it may have set the standard for electric mobility in India.
The author is Policy and Regulation Lead at Climate and Sustainability Initiative (CSI).
