Punjab Electric Vehicle Policy Draft 2019

The Punjab Government has published the "Punjab Electric Vehicle Policy Draft 2019" to acknowledge the potential of EVs and support EV adoption in the state, with the main focus on promoting EV and EV component manufacturing and creating jobs in clean mobility.

Objective Punjab EV Policy Draft 2019

The following goals of Punjab's EV policy were created with a variety of UN Sustainable Development Goals in mind (SDGs). A thorough justification for alignment with different SDG targets is appended:

·         Adoption - To encourage adoption, the policy's final year should see 25% of new vehicle registrations be electric vehicles.

·         Reducing Vehicular Emissions – To bring about a reduction in vehicular emissions by end of the policy.

·         Infrastructure: To encourage the development of EV charging infrastructure in the state on both a public and private level.

·         Manufacturing – To establish Punjab as a favoured destination for manufacturing electric vehicles, components and batteries.

·         Startups – Promoting start-ups in the EV sector will help to create an environment that is conducive to innovation.

·         R&D – To establish Punjab as an R&D hub in electric vehicles led by a Centre of Excellence (CoE).

·         Human Resource - To support job creation, introduce academic training programmes and vocational (skilling and up-skilling) training to meet the needs of the EV ecosystem's human resources.

·         Ensuring Sustainability - To reduce environmental harm by encouraging the recycling and reuse of used batteries.

Support for Electric Two-Wheeler

·         2W Electric Two-Wheelers make up more than three-fourths (76%) of new vehicle registrations in the state, with new sales of these vehicles expected to rise to 25% during the policy period.

·         Supporting Transition of Electric Two-Wheeler Following incentives shall be provided under Punjab EV Policy in addition to incentives under FAME II to support the transition.

Private Electric Two-Wheeler

During the term of the policy, there is a 100% motor vehicle tax waiver. Furthermore, this exemption will be valid for vehicles made in Punjab for ten years.

Commercial Electric Two-Wheeler

·         Permit fees and motor vehicle taxes are 100% waived for the duration of the policy. Additionally, this exemption will be valid for 10 years for vehicles made in Punjab.

·         In "target cities," fleet and delivery companies will be urged to make a gradual switch to electric vehicles.

Support for Electric Three-Wheeler – Electric Autos, E-Rickshaws & E-Karts

Supporting the Transition of E3W: In addition to the incentives under FAME II, the Punjab EV Policy shall also provide the following incentives to support the transition:

E-Auto

·         Permit fees and motor vehicle taxes are completely waived for the duration of the policy. Additionally, this exemption will be valid for 10 years for vehicles made in Punjab.

·         In "target cities," only E-autos will be given a new license. Subject to the regulations set forth by the Department of Transport, Government of Punjab, fleet owners will be permitted to acquire and hold e-auto permits.

E-Rickshaws

The Department of Transportation will conduct a special drive to require free registration of all currently operating e-rickshaws. Permit and registration fees are completely waived for the duration of the policy. Additionally, this exemption will be valid for 10 years for vehicles made in Punjab.

Goods Carrier 3-Wheeler

·         Permit fees and motor vehicle taxes are 100% waived for the duration of the policy. Additionally, this exemption will be valid for 10 years for vehicles made in Punjab.

·         Businesses and fleets will be pushed to make a phased transition to 100% electric in "target cities".

Support for Electric 4-Wheeler- Passenger Carrier, LCV, Stage Carriage, Maxi Cabs & Taxis

The total number of taxis registered in Punjab from FY13 to FY19 is 38,155, with nearly 80% of them being diesel-powered. In the target cities, this policy seeks to significantly increase the proportion of e-taxis in new sales to 25% over the course of the policy's duration and to encourage the use of e-LCVs for intra-city freight transportation.

Supporting the Transition of E2W: In addition to incentives under FAME II, the Punjab EV Policy shall also provide the following incentives to support the transition:

·         Private 4-Wheeler - 100% of the motor vehicle tax is waived during the term of the policy (or 50% for hybrids). Additionally, this exemption will be valid for 10 years for vehicles made in Punjab.

·         Commercial 4-Wheeler (Goods & Passenger Transport) - During the term of the policy, the permit fee and motor vehicle tax are waived 100% (or 50% for hybrids). Additionally, this exemption will be valid for 10 years for vehicles made in Punjab. Businesses and fleets will be pushed to make a phased transition to 100% electric in "target cities".

·         Vehicles in Public fleet (Owned or Contracted by Govt.) - The Punjabi government intends to gradually switch the entire public fleet over to electricity. In all future vehicle and service purchases, BEVs will be given preference.

·         Corporate Fleets - 100% of the motor vehicle tax is waived during the term of the policy (or 50% for hybrids). Additionally, this exemption will be valid for 10 years for vehicles made in Punjab.

o   All businesses and institutions in the "target cities" will be urged to register for a phased fleet transition. The Punjabi government will host a special ceremony to honour and support such businesses.

Incentives on Electric Buses

Almost 90% of Punjab's bus fleet is currently powered by diesel. The goal of the policy is to gradually replace 25% of the buses in the Department of Transportation's fleet with electric vehicles. In agreement with PUNBUS/PEPSU, the Department of Transportation would determine:

·         Priority will be given to high-volume intercity bus routes for the switch to electric vehicles.

·         Routes of the City Bus fleet in the targeted cities that could be converted to EV

UNBUS/ PEPSU to formulate an action plan for transitioning the fleet to EV and would be encouraged to procure/operate e-buses as per FAME II guidelines.

Private bus operators will be encouraged to run their buses along designated routes and will be given a 100% waiver of the permit fee for those routes and the motor vehicle tax for a period of five years. If the bus was made in Punjab, the waiver will also last for ten years.

Policy Document