Delhi High Court Directs Government to Grant Approvals for Electric Vehicle Subsidies

The Delhi High Court has stepped in to address delays in subsidy payments under the Delhi Electric Vehicle (EV) Policy, 2020, directing the government to grant necessary approvals for opening a new bank account. The policy, which was introduced in 2020 and has been extended multiple times, offers a range of incentives, including purchase subsidies for electric two-wheelers, e-rickshaws, e-carts, and electric cars for commercial use. With 78,158 beneficiaries already receiving subsidies totaling Rs.179.35 crore, the court has emphasized the need for timely disbursement, highlighting the government's procedural delay as the main obstacle. The court's order comes after an RTI reply by the Delhi transport department's public information officer attributed the delay to the ongoing process of setting up a new bank account for direct subsidy transfers.

Key Takeaways:

• The Delhi High Court has directed the Delhi government to grant necessary approvals for opening a new bank account to ensure timely disbursement of subsidies under the Delhi Electric Vehicle (EV) Policy, 2020.
• The policy, introduced in 2020, offers purchase subsidies for electric two-wheelers, e-rickshaws, e-carts, and electric cars for commercial use, as well as scrapping incentives and interest subvention on loans.
• The government has extended the policy multiple times, with the current extension lasting four months.
• Despite 78,158 beneficiaries receiving subsidies totaling Rs.179.35 crore, Rs.48.36 crore remains unpaid due to procedural delays in setting up a new bank account.
• The court has emphasized the importance of timely disbursement, highlighting the government's procedural delay as the main obstacle.
• The Delhi transport department's public information officer cited the ongoing process of setting up a new bank account for direct subsidy transfers as the reason for the delay.
• The court has directed the government to address the procedural delay and set up a new bank account to immediately start payments.

Statistics:

• 78,158 beneficiaries have received subsidies totaling Rs.179.35 crore under the Delhi Electric Vehicle (EV) Policy, 2020.
• Rs.48.36 crore remains unpaid due to procedural delays in setting up a new bank account.
• The current policy offers a purchase incentive of 25% (up to Rs.5,500) for e-cycles, Rs.30,000 for e-rickshaws and e-carts, and Rs.5,000 per kWh of battery capacity (capped at Rs.30,000) for two-wheelers.

Sources:

• Hindustan Times, "Delhi HC directs Delhi govt to grant approvals for electric vehicle subsidies" (September 4, 2023)