Delhi Govt Approves Draft Policy For Cab Aggregators, Mandates EV Transition, Permits Only Electric Bike Taxis

According to the scheme draft, by April 1, 2030, cab aggregators and delivery service providers must transition to electric fleets. The scheme paves the way for regulatory provisions for bike taxis 

The Chief Minister said that the promotion of electric bike-taxis and transition to electric vehicles (EVs) would open up avenues for employment and contribute to economic growth.

Source : Getty

Delhi Chief Minister Arvind Kejriwal on Wednesday approved the Motor Vehicle Aggregator Scheme 2023, which mandates panic buttons in taxis, integration with emergency number '112', and a phased transition to EVs among other regulations, reported PTI. The scheme aims to regulate cab aggregators and delivery service providers in the capital.

According to the scheme draft, by April 1, 2030, cab aggregators and delivery service providers must transition to electric fleets. The scheme paves the way for regulatory provisions for bike taxis and rent-a-bike services. 

The Chief Minister said that the promotion of electric bike-taxis and transition to electric vehicles (EVs) would not only lead to the reduction of pollution levels in Delhi but also open up avenues for employment and contribute to economic growth, as per the plans of the Aam Aadmi Party (AAP) government.

Citing an official statement, the report said, a draft of the scheme has been sent to Lieutenant Governor V K Saxena. It will then be put up for public feedback and comments by the transport department before being given the final shape. 

"This scheme prioritises the safety of passengers and ensures timely grievance redressal, while also promoting the use of electric vehicles and reducing pollution levels in the city," the chief minister said, according to the report. 

According to the report, the Motor Vehicle Aggregator Scheme 2023 applies to individuals or entities that use digital or electronic means or any other method to operate, onboard or manage a fleet of motor vehicles for passenger transport or delivery services. The scheme aims to enhance passenger safety, service quality, and promote the adoption of electric vehicles. It mandates the installation of a panic button and integration with emergency number '112' in the vehicles for emergencies. The scheme includes provisions for timely redressal of consumer grievances, ensuring vehicle fitness, pollution control, and permit validity. In case of poor driver performance, the scheme allows for driver remedial training.

"The scheme will also mark a historic first for the nation where a state government will be introducing a mandatory transition of commercial vehicles from conventional vehicles to electric vehicles. The scheme provides for phased mandates for fleet operators to transition their fleets from conventional vehicles to electric," the statement said.

According to the news agency, to avoid impacting existing livelihoods, the Motor Vehicle Aggregator Scheme 2023 will only be applicable to a certain percentage of newly on-boarded vehicles over four years. For instance, in the first six months, only five per cent of new on-boarded cars must be electric. After four years, all new commercial two and three-wheelers must be EVs, and after five years, all new commercial four-wheelers must also be EVs.

Since Delhi has never allowed bike taxis to operate in the city, the scheme provides for such services to be regulated. As a new business opportunity, the scheme ensures that all bike taxis and two-wheeler renting services in the city shall only be via electric two-wheelers. These provisions are in line with the Delhi EV Policy 2020, the statement added.

The scheme follows the "polluter pays" principle. This will make the per-vehicle licence fee for a conventional vehicle significantly higher than an electric vehicle.

For instance, there may be no licence fee for an electric taxi, but for a CNG taxi, it may be Rs 650.

Secondly, all licence fees and penalties under the scheme shall be credited to the State EV Fund, which in turn supports all EV promotional activity.

Talking about the draft scheme, Transport Minister Kailash Gahlot said Delhi has achieved another milestone with its Motor Vehicle Aggregator scheme.

After extensive stakeholder consultations, Motor Vehicles Aggregators policy has been approved by CM @ArvindKejriwal & sent to LG. Will soon be put for public comments.

For the 1st time in India, commercial aggregators have been given a firm target for transitioning to EVs.

— Kailash Gahlot (@kgahlot) May 10, 2023

"This is happening for the first time in India when a state has given targets to the aggregator to electrify their fleets and regulate such service providers in the city, with the goal of ensuring passenger safety and reducing pollution with sustainable public transportation in the city. We have introduced a polluter pays principle, where onboarding of any electric vehicle will have zero licence fee. The scheme also lays the foundation for a regulatory provision for bike taxis (two-wheeler ride-hailing services) and rent-a-bike services," he added.