What is the difference between Electric Vehicle Policy and PLI Scheme, how different is EV Policy from Motor Vehicle Act?

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New Delhi: The demand for electric vehicles is increasing rapidly in India. Along with this, their production has also increased. The government has decided to reduce the production of internal combustion engine (ICE) vehicles in the country to reduce environmental pollution in the country by increasing the production of electric vehicles and the batteries used in them, manufacturing of components and development of electric vehicle related infrastructure. Is giving encouragement. For this, the government has started schemes like Production Linked Incentive Scheme (PLI) and Fame India. Along with this, a blueprint of new electric vehicle policy has been prepared for the year 2020 regarding electric vehicles, on the basis of which new electric vehicle policy has been prepared in about 26 states of the country including Bihar-Jharkhand. But, no separate policy has been formulated to guide the licensing of drivers and conductors of electric vehicles, the provisions governing registration of motor vehicles, their permits, traffic rules, related insurance, liabilities and penalties. Till now the old Motor Vehicles Act in the country is being applied to electric vehicles also.

Now that the world’s leading electric vehicle manufacturer Elon Musk’s Tesla is planning to enter India, the government is emphasizing on making a new electric vehicle policy. The biggest thing is that the electric vehicle policy that was prepared by the government in the year 2020, is it the same electric vehicle policy or is the government working on a separate plan to prepare a new policy? The buzz is that along with Tesla’s entry plan, the government is considering formulating a new electric vehicle policy. At present, how different is the electric vehicle policy outline prepared by the government in 2020 from the Motor Vehicles Act of 1988? What is the difference between Electric Vehicle Policy and PLI Scheme? Let us know about them.

What is PLI scheme?

Production Linked Incentive Scheme (PLI Scheme) was started by NITI Aayog to accelerate manufacturing activities in India. The Empowered Group of Secretaries was formed in June 2020. Seeking to create a centralized database to monitor progress in PLI schemes across sectors, NITI Aayog plans to create the database with an external agency and government-owned IFCI Limited or SIDBI.

What is the government’s plan for electric vehicles?

To accelerate the rapid adoption and production of hybrid and electronic vehicles in India, the government on April 1, 2019 launched Phase-II of the FAME India Scheme with an investment of around Rs 10,000 crore for a period of five years, the Press Information Bureau (PIB) reported. Has been notified. After this the outlay was increased to Rs 11,500 crore. Production Linked Incentive (PLI) scheme was launched for automobile and auto component industry. The government approved the PLI scheme for the motor-vehicle sector with a budgetary provision of Rs 25,938 crore on September 15, 2021. In this scheme, incentive amount of up to 18 percent is provided for electronic vehicles.

Subsidy on battery manufacturing under PLI

Additionally, the government launched the National Advanced Cell Battery Storage Program on May 12, 2021, with a budgetary provision of Rs 18,100 crore under the PLI scheme for manufacturing and storage of Advanced Chemical Cell Batteries (ACC batteries) for electric vehicles in the country. Had started. Under this scheme, it is envisaged to establish a competitive ACC battery manufacturing system with a capacity of 50 gigawatt per hour in the country. Along with this, the scheme also includes 5 GW per hour of advanced technologies.

Key points of the new electric vehicle policy

• The government had prepared a blueprint to prepare an electric vehicle policy in the year 2020. On the basis of this, electric vehicle policy has been implemented in 26 states of the country including Bihar-Jharkhand.

• The draft electric vehicle policy calls for promoting the replacement of existing auto rickshaws and buses run by the state government with e-autos and e-buses. It has also been ensured that the delivery-based services operated in the city are connected to e-mobility.

• This policy talks about increasing road tax for fuel-based vehicles and imposing congestion charge in some parts of the city, in which electric vehicles will be exempted from this charge.

• The policy has a ‘scraping incentive’ for those who wish to exchange their old fuel-based vehicle while purchasing an electric vehicle, which will reduce the vehicle cost.

• The government will provide loans at low-interest rates to people wishing to purchase commercial electric vehicles.

• This policy provides exemption from subsidy, road tax and registration fees for electric vehicles purchased in the capital of India, Delhi.

• Apart from this, a subsidy of Rs 30,000 will be given on the basis of battery capacity of electric vehicle 5,000 kilowatt per hour.

• Subsidy of Rs 10,000 per kilowatt will be provided on the purchase of first 1,000 e-cars or electric four-wheelers.

• It is necessary to register at least 5,00,000 electric vehicles in Delhi by the year 2025.

• Ride-hailing service providers will be allowed to operate electric two-wheeler taxis under the guidelines to be issued by the transport department.

• The funds received under the policy will encourage service providers of food delivery, e-commerce logistics providers and courier services to use electric two-wheelers.

• The incentive amount for purchase of auto rickshaws will be Rs 30,000 per vehicle, which will be linked to the use of new electric autos.

• An open permit system will be introduced to provide permits on a first-come, first-served basis to those with valid motor vehicle driving licenses and public service vehicle badges.

• There will be no upper limit on permits issued to e-autos in Delhi, as they are zero emission vehicles.

• The government has set a target of selling 30 percent of total cars and two-wheeler electric vehicles by the year 2030.

• Initiatives like National Electric Mobility Mission Plan and Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles have been launched in India to build a sustainable electric vehicle ecosystem.

• FAME India was launched in 2015 with the objective of supporting hybrid/electric vehicle market development and manufacturing ecosystem. The scheme includes 4 focus areas technology development, demand creation, pilot projects and charging infrastructure development.

Motor Vehicles Act 1988

In India, the Motor Vehicles Act was passed in 1988, which regulates almost every single part of road transport vehicles. It provides guidelines on licensing of drivers and conductors, registration of motor vehicles, provisions governing their permits, traffic rules, related insurance, liabilities and fines etc. The Motor Vehicles Act makes it mandatory for any driver to have a valid driving license and no vehicle can be driven without being registered under the Motor Vehicles Act.

Sections and offenses under Motor Vehicles Act

• If any person is driving his vehicle without a valid license, then action will be taken against him under Section 3 r/w 181 of the Motor Vehicles Act.

• If a person allows his vehicle to be driven by a person who does not have a valid license, then action will be taken under Section 5 r/w 180 of the Motor Vehicles Act.

• If the person does not have all the relevant documents, then action will be taken under Section 130(3) r/w 177 of the Motor Vehicles Act.

• If a person is driving his vehicle without valid insurance, action will be taken against him under Section 130 r/w 177 of the Motor Vehicles Act.

• If a person is driving his vehicle without a valid permit, then a fine will be fixed against him after taking action under Section 130 r/w 177 Motor Vehicles Act.

• If a person is driving his vehicle without valid fitness, the amount of fine will be decided after taking action against him under Section 130 r/w 177 Motor Vehicles Act.

• If any person does not have a valid RC for the vehicle, action will be taken under Section 39 r/w 192 Motor Vehicles Act.

• If a minor is driving a vehicle, action will be taken against him under Section 4 R/S 181 Motor Vehicles Act.

• If any unauthorized person is allowed to drive the vehicle, action will be taken against the vehicle owner and the driver under Section 5 r/w 180 Motor Vehicles Act.

• If a person drives a vehicle without a helmet, action will be taken against him under Section 129 r/w 177 Motor Vehicles Act.

• If a person is driving a vehicle without wearing a seat belt, then action will be taken under Section 138(3) CMVR 177 Motor Vehicles Act.

• If any person is found over-speeding and rash driving, action will be taken against him under Section 184 Motor Vehicles Act.

• If any person is found driving rashly or dangerously, action will be taken against him under Section 112-183 of the Motor Vehicles Act.

• If a person drives one way or in the wrong lane, action will be taken against him under Section 17(i) RRR 177 of the Motor Vehicles Act.

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