India’s Electric Vehicle Policy- Challenges and Solutions

With the embodiment of electric and hybrid vehicles, India’s mobility architecture is poised to change completely. The massive shift of both personal and commercial vehicles to electrically charged vehicles is a cause célèbre for India and the world, though it comes along with a few challenges. Electric Vehicles policy has just crossed the nascent stage since its inception in 2013. Government has been enhancing the electric vehicle programme by introduction of FAME-I and FAME-II scheme to bring it on a fast run.

 With the government opening its horizons to hybrid and electric vehicles certain challenges have been faced by this sector. Since the electric vehicle market is not established strongly in India, it faces problems like infrastructure restrains mainly due lack of adequate charging points and power supply. Other issues include high import rates of battery pack, dealer reluctance to sell electric vehicles, low durability of electric vehicle, minimal consumer trust etc. The shift from fuel to electric vehicle cannot be projected until these restrains are met.

The first big challenge is with regards to the permit being issued by the State or regional transport authority allowing the running and usage as per the Motor Vehicle Act 1988. These permits includes contract carriage, EVs import, goods carrier permits, cab permits etc. Government has in order to promote the EV’s have provided with full exemption to all alternative fuel vehicle but hybrid and mild hybrid is out of these previews; therefore it can cause confusion in the mind of operators or the users as not all EV’s are immune under the government incentives.

The other challenge is the electricity regulation to be meted to reach out the consumers. Electricity is governed by the State electricity regulatory commissions (SERC) and DISCOMS and presently it has been facing shortage so therefore, electric allocation in the project is the major issue. Given the number of the regulators involved in electricity distribution a comprehensive review of existing laws and regulations is required mainly with respect to CERC regulation as it is the only distribution license that can sell power in India. Necessary changes are to be brought in law to provide for sufficient electricity, probably through a separate grid, at charging points so that the consumers have not to face problems.

The other challenge faced by the EV industry could be that there is no battery legislation or any other legislation governing electric vehicles per se in India till now. There are legal requirements for market authorization for batteries and some other parts of an electric car such as registration and labelling provisions which needs law to govern it.

The other challenges shall be faced in case of rollout of network of charging points. In installation of charging points proper general network connection rules, infrastructure law, land acquisition and safety regulation has to be checked. Further there are also obligations on part of the users using EV to handle them with proper care in order to differentiate in a defect and normal wear and tear of the battery. Other than this the consumer must also be made aware about the batteries degradation rate, range, horsepower and acceleration before purchase of the EV, so that he can claim relief in case of any in-appropriation by the seller. The liability in regards to no-electric at charging station, defect in battery, insurance claims etc., are to be made clear in order to curtail consumer’s dispute with regards to EVs. Lack of expertise with regards to dealing in electric vehicles will also become an issue while repairing, or dealing with any consumer related disputes with respect to electric vehicles.

Sequitur here is that different departments of the government need to work together harmoniously to accelerate the implementation of electric mobility in the country for a better future.