Electric Vehicle Policies of States Leave Much To Be Desired: Report – EQ Mag
Ensuring longer-term policies and monitoring mechanisms for implementation are some gaps that states need to focus on, the report suggests.
New Delhi: The electric vehicle (EV) policies of state governments will need better implementation mechanisms for real on-ground impact, according to a report released on February 16.
The report, published by Climate Trends, analysed the EV policies of 26 states based on 21 parameters. It found that Maharashtra, Haryana, Delhi and Uttar Pradesh have the most comprehensive ones that ticked at least 12 parameters (such as a focus on battery recycling and defined targets for sales penetration).
However, several states fared badly.
The report also analysed the impact of current policies in eight states and found that none are on track to meet their targets related to EV penetration and charging infrastructure, identification of Green Zones (where fossil-fuel vehicles are restricted) and more. Developing longer-term policies and having monitoring mechanisms in place to ensure implementation are some of the many gaps on which states need to focus on, per the report.
EVs and states: comparisons
Twenty-six states across India currently have EV policies in place. Climate Trends, a consultancy that focuses on issues relating to the environment, climate change and sustainable development, analysed the various EV policies in these states based on 21 parameters. The parameters pertained to EV targets and budgets (such as the specific budget allocated for dispersing incentives such as State EV Fund), demand-side subsidies for customers (such as road tax and registration fee exemptions, subsidies offered on interest rates and electricity tariff benefits for consumers), industry incentives (including manufacturing incentives and those for charging infrastructure, focus on skill development, and research and development incentives or funds) as well as the states’ focus fleets, job creation and charging infrastructure mandates.
It found that among the 26 states that have EV policies, Maharashtra, Haryana, Delhi and Uttar Pradesh have the most comprehensive ones: these states fulfilled the most – at least 12 – of the 21 parameters that the team analyzed.
On the other hand, some states fared very badly. Arunachal Pradesh’s policy covers only three out of the 21 defined parameters, making it the least holistic policy, the report noted. The other states that performed badly included Manipur and Himachal Pradesh (their policies covered only five and six parameters respectively), and Uttarakhand, Ladakh and Kerala, which covered only seven parameters.
The states with the strongest demand-side incentives (such as road tax and registration fee exemptions) are Delhi, Odisha, Bihar, Chandigarh and the Andaman and Nicobar Islands. Maharashtra, Haryana, Rajasthan and Meghalaya follow closely. On the other hand, several states had weak demand-side incentives. Andhra Pradesh, Arunachal Pradesh and Manipur, for instance, offer only one form of this incentive.
Tamil Nadu, Haryana and Andhra Pradesh are the states with the strongest incentives to attract EV investments, according to the report.
Impact of policies
Eight states released their policies before October 2020, and have been in circulation for two years or more – Andhra Pradesh, Bihar, Karnataka, Kerala, Madhya Pradesh, Tamil Nadu, Telangana and Delhi. The team analysed the impact of these policies against the targets defined for aspects such as electric vehicle penetration.
As of December 2022, none of these states had achieved their EV penetration targets for specific years. None of the states are on track to meet their charging infrastructure targets, with Kerala and Madhya Pradesh already missing their 2022 target. Only five of the eight states have defined investment targets at all. None of these eight states have implemented Green Zones – areas where the entry of fossil fuel-powered vehicles is restricted, thereby making them zero-emission zones.
These states have also not met any of the targets aimed at improving e-mobility in pilot cities, such as defined targets for EV penetration and charging infrastructure.
Recommendations
Many states need to “reassess the design of their EV policies”, and include more provisions and incentives to enable e-mobility growth, the report recommended.
Policies need to also be planned for a longer term, it noted. Currently, many states have defined their policies for two years or less, and few have longer-term policies spanning six years or more. Ideally, states should consider extending all EV policies till 2030, the report suggested.
States should also include more mandates for charging facilities in urban infrastructure, and this would “reap high benefits” the report suggested. For example, mandating all existing and future urban construction like malls, hospitals, parking lots, offices, and residential complexes to install EV charging points would be a good step and ten states have already done so.
Other recommendations the report makes include defining clear targets for EV penetration and electrification of public transport, incentivising battery swapping solutions and ensuring monitoring for effective implementation of the policies.
“It is a good sign that the majority of Indian states have EV policies, however a successful transition to zero emission transport depends on the effectiveness of their design and implementation,” said Aarti Khosla, director, Climate Trends, in a press release. “It also depends on having a national transport electrification target, which currently doesn’t exist in India. Our study shows that few state policies have comprehensive designs which balance EV sales, manufacturing and overall ecosystem growth. There are gaps in implementation, leading to slower on-ground impact, which need to be addressed through better regulation, improved monitoring, mechanisms and capacity building of stakeholders across the policy value chain.”
“The critical need now is effective design and implementation of these policies that take into account the specific and unique characteristics of each state,” said Pawan Mulukutla, director, Integrated Transport, Electric Mobility and Hydrogen, WRI India. “We also need replicable models that can be modified by states to suit their requirements and scale adoption.”
To accelerate adoption at the sub-national level, several actions including regulatory mechanisms in the form of mandates will be important too, he added.
