Panel finds loopholes in Chandigarh electric vehicle policy

A three-member committee set up to finalise the draft of the electric vehicle (EV) policy has picked loopholes in the latest draft of the policy.

The committee members, in a recent meeting, questioned several key proposed features like the quantum of subsidy to be given, subsidy targets, proposal to ban petrol two-wheelers from the next financial year and the methodology on which the policy is being prepared.

In September, UT adviser Dharam Pal had constituted a three-member committee comprising deputy commissioner, MC commissioner and the chief executive officer, Chandigarh renewable energy and science and technology (CREST) to prepare the final draft electric vehicle policy.

The primary mandate of the committee is to examine the financial implications of the incentives to be offered under the policy and to analyse the pattern in the other states where such policy has been formulated.

CREST entrusted with finalising policy

Notably, earlier, the UT transport department had also prepared a draft EV policy. But later this year the CREST was entrusted with finalising the policy.

The administration is to bring the policy to encourage e-vehicles to reduce pollution in the city by bringing down emissions from the transport sector.

There are five categories of vehicles that include two-wheelers, cars and heavy vehicles. The official questioned how the subsidy for these different categories has been calculated.

“It was suggested that rather than arbitrary fixing the subsidy, it should be calculated by incorporating actual markets costs and resale value of vehicles,” said a senior UT official privy to the committee discussions.

The draft advocates subsidies to vehicle buyers, which is expected to act as a major incentive to people to move from fossil fuel-based vehicles to electric vehicles.

‘Subsidy target should be practical’

The members also pointed out the subsidy targets being set. “The members said the subsidy target should be practical and based on the actual new vehicles being registered. For instance, it doesn’t make sense to fix a target of say 200 vehicles per month for the subsidy when only 100 vehicles are being registered. Instead, it can be in the percentage of total vehicles being registered,” said the official.

The members also asked the CREST officials to re-postulate the modalities of the fund to be set up for financing subsidies and other measures under the policy.

Members for adequate charging points

The committee members also suggested that before the city residents are asked to favour electric vehicles over petrol/diesel vehicles, adequate charging points across the city should be there. Notably, most of the charging points are to be created in the MC parking lots and its permission to set up these were sought by the environment department only recently. Acting on it, the MC general house in its last meeting in principle approved the setting up of these on MC land.

“There is also an issue with the timelines set by the draft. For instance, the provision under the draft recommending stopping of registration of petrol two-wheelers by the start of the next financial year is not feasible,” said the official.

Debendra Dalai, chief executive officer, CREST, said, “We had a constructive meeting on different aspects. We are in the process of incorporating the suggestions made by the members and revising the draft.”