The Regulatory Framework for E-Mobility in Maharashtra
An electric vehicle (“ EV”) is a motorized vehicle adapted for use on roads. It is propelled by an electric motor, which is powered by a battery installed in the vehicle.[1] Given that EVs are much more efficient and environment-friendly than gasoline or liquefied petroleum gas (“ LPG”) — powered vehicles,[2] they have propelled into relevance. The global investment into the EV industry is expected to surge to up to USD 300 billion over the next five (5) to ten (10) years.[3]
In India, the EV sector is fairly nascent. Policy developments are led by central government schemes like the ‘Faster Adoption and Manufacturing of Hybrid and Electric Vehicles’ (“ FAME”)[4] and the ‘National Electric Mobility Mission Plan, 2020’ (“ NEMMP”).[5]
Against the background of such initiatives, Karnataka, Uttar Pradesh, Maharashtra, Telangana and Delhi, among others,[6] came up with their EV policies to take advantage of the growing industry and promote eco-friendly alternatives to fossil-fueled automobilization. Here, we take a look at the development of the EV policy framework for the state of Maharashtra.
2. Timeline of the initiatives undertaken by the Maharashtra government
2013- The Nagpur Improvement Trust came up with the ‘Comprehensive Mobility Plan’.[7] This document laid down long-term strategies for the development of a mobility pattern for the city and laid emphasis on electric vehicles for public and private use.[8]
18 March 2015- The Maharashtra state government, in its 2015–16 budget, emphasised the usage of bio-fuel and e-taxis for transportation with an aim of protecting the environment.[9]
April 2015- The Mumbai Metropolitan Regional Development Authority (“ MMRDA”) floated a request for proposals (“ RFP”) for 25 air-conditioned, electric/hybrid buses to ply from the Bandra-Kurla complex to three (3) railway stations in furtherance of its intentions laid out in the state government’s budget.[10]
8 August 2016- The Maharashtra government, for the first time, incentivised EVs. The Electricity Act, 2003 excluded the energy generated for purposes of supplying it for the use of vehicles from electricity duty in the state.[11]
24 October 2016- The government of Maharashtra came out with a set of draft rules called ‘Maharashtra City Taxi Rules, 2016’ (“ Draft Taxi Rules”).[12] For this purpose, the government drew powers from section 74(1) of the Motor Vehicle Act, 1988. The Draft Taxi Rules sought to amend the existing rules applicable to taxis in the Mumbai metropolitan region. The draft rules mandated licensed taxis in Maharashtra to run on clean fuel (such as unleaded petrol, compressed natural gas, hybrid or electrical power).[13]
4 March 2017- The Draft Taxi Rules officially came into force as ‘Maharashtra City Taxi Rules, 2017’.[14]
26 May 2017- Chief Minister Devendra Fadnavis inaugurated the country’s “ first multi-modal electric vehicle project”[15] at Nagpur airport complex. Consequently Nagpur became the first city in India where the public started using electric vehicles for public transport.[16] The Maharashtra government brought together Mahindra and Mahindra, Ola, Kinetic, Tata Motors and other automobile manufacturers to supply electric vehicles for public transportation in the city.[17] Fadnavis also waived off road tax and registration fee for electric vehicles and made clear his intentions of making Maharashtra a “ model state in electric transportation in near future”.[18]
9 February 2018- The state’s cabinet gave its nod to the state’s EV policy[19] with aims to address all sectors — manufacturing, infrastructure and consumers — involved in the development and uptake of EV in the state.[20]
14 February 2018- The Maharashtra government came up with the ‘Maharashtra’s Electric Vehicle Policy, 2018' (“ Draft EV Policy 2018”) along the lines of the United Nations’ agenda of sustainable development,[21] and the government of India’s agenda of making India an ‘electric vehicle nation’ by 2030.[22] It set down definite policy objectives and targets for the promotion of this sector in Maharashtra. It provided incentives for manufacturing EVs, charging EVs, and even offered subsidies of 15% per vehicle to private transporters and to individual buyers for EVs registered in Maharashtra. It also focused on skill development and promotion of research and development in this sector.[23]
19 February 2018- The government of Maharashtra officially launched the Draft EV Policy 2018 renamed as ‘Maharashtra’s Electric Vehicle and Related Infrastructure Policy, 2018' (“ EV Policy 2018”) at the Magnetic Maharashtra Converge 2018 Global Investors Summit. The EV Policy 2018, adding on to the Draft EV Policy 2018, also laid down well-defined policy strategies and targets with respect to the development of the EV sector in the state.[24]
24 April 2018- The Maharashtra government issued a special ordinance, which directed planning authorities to start giving permissions for the construction of EV charging stations in accordance with its EV Policy 2018.
16 May 2018- Fadnavis handed over 25 hybrid electric buses from Tata Motors to MMRDA. This marked the commencement of EVs being used for public transport to the city of Mumbai.[26]
24 May 2018- In a bid to boost EV and related infrastructure, the Maharashtra government came out with provisions of refunding taxes to companies setting up EV manufacturing plants and offered subsidies to consumers of EVs. The Maharashtra government got proposals of up to USD 1.46 billion from private companies JSW Energy, Mahindra & Mahindra and Tata Motors.[27]
31 May 2018- The Maharashtra government signed MoUs with Mahindra & Mahindra and Tata Motors to deploy 1000 EVs over the course of next year in furtherance of the tender floated by the central government agency Energy Efficiency Services Limited (“ EESL”).[28]
25 September 2018- The Maharashtra government handed over five (5) EVs procured on rent from EESL to the public works department, with plans of procuring 1000 more.[29] Fadnavis also revealed the government’s plan of action to procure an additional investment of INR 25 crore in the sector.[30]
20 September 2018- The ‘Maharashtra State Electricity Distribution Company’ (“ MSEDCL”) announced the first phase of the EV Policy 2018, and its intention of setting up 50 EV charging stations.[31] It planned to set up 500 such charging stations all over Maharashtra. Each charging station was estimated to cost of INR 2.5 lakh, and charge an EV in about 45 minutes to one hour. The tariff for the service was fixed at INR 6 per unit.
23 November 2018- The state government announced that only EVs would be used inside tiger reserves.[33] These vehicles were to have prior approval of the regional transport office. The government also planned to give a 50% concession on the entry fee, in order to put a check on the petrol and diesel vehicles.
16 February 2019- MSEDCL floated a tender for planning, designing and engineering of 50 direct current EV charging stations, with a 5-year on-site warranty.
5 March 2019- MSEDCL also floated a tender for installation and maintenance of EV charging infrastructure and operation centres all across Maharashtra. The bidder would be responsible for “ supply, customization, installation, deployment and maintenance of necessary software and other systems for monitoring, data logging and data analysis”[36] of 50 charging stations, expandable to up to 500 charging stations,[37] all over the state for a period of five (5) years.[38]
24 April 2019- The government of Maharashtra opened up a web-portal for the registration of EVs, as a gateway for sanction and disbursement of fiscal incentive, to the buyers of EVs.[39]
( Authored by Ritwik Prakash Srivastava, a third-year undergraduate student of National Law Institute University, Bhopal and Torsha Sarkar, an undergraduate student of National Law University, Odisha during his internship with Ikigai Law. Tuhina Joshi, Associate, and Nehaa Chaudhari, Public Policy Lead gave inputs.)
[1] The Central Motor Vehicle Rules 1989, Rule no. 2(u), notification dated 16 September 2005, available at http://www.tn.gov.in/sta/Cmvr1989.pdf.
[2] The US Department of Energy, Electric Vehicles: Saving on Fuel and Vehicles Costs, available at https://www.energy.gov/eere/electricvehicles/saving-fuel-and-vehicle-costs.
[3] P. Lienert, N. Shirouzu and E. Taylor, Exclusive: Volkswagen, China spearhead $300 billion global drive to electrify cars, dated 10 January 2019, available at https://in.reuters.com/article/autoshow-detroit-electric/exclusive-volkswagen-china-spearhead-300-billion-global-drive-to-electrify-cars-idINKCN1P40H0.
[4] India CSR Network, Overview on India’s 2030 Vision on Electric Vehicle, dated 11 June 2017, available at http://indiacsr.in/overview-indias-2030-vision-electric-vehicle/.
[5] Press Information Bureau, Ministry of Heavy Industries and Public Enterprises, dated 10 March 2015, available at http://pib.nic.in/newsite/PrintRelease.aspx?relid=116719.
[6] T. Poojary, Eight states in India are racing ahead, boosting electric vehicles through policy groundwork, dated 29 March 2019, available at https://yourstory.com/2019/03/india-government-electric-vehicles-policies-mvqiyx.
[7] Nagpur Improvement Trust, Comprehensive Mobility Plan, dated 2013, available at http://www.metrorailnagpur.com/pdf/updated-CMP-of-Nagpur-City.pdf.
[8] Nagpur Improvement Trust, Comprehensive Mobility Plan, dated 2013, available at http://www.metrorailnagpur.com/pdf/updated-CMP-of-Nagpur-City.pdf.
[11] Government of Maharashtra, Maharashtra Act No. XXVI of 2016 in the Gazette of Maharashtra, at Paragraph 3(2)(vii), dated 8 August 2016, available at http://www.mercindia.org.in/GoM/pdf/Order%2058%2042/Maharashtra%20Electricity%20Duty%20Act,%202016.pdf.
[12] Government of Maharashtra, Notification No. MVR 0315/CRI109?TRA-2, dated 15 October 2016 available at http://mahatranscom.in/pdf/Aggregator%20Rules-15_10_2016.pdf.
[13] S. Johari, Maharashtra Govt’s app based cab aggregator rules: Fixed fares & no street hails, dated 24 October 2016, available at https://www.medianama.com/2016/10/223-maharashtra-city-taxi-rules-2016/.
[14] Government of Maharashtra, Notification No. MVR 0315/CR109/TRA-2, dated 04 March 2017, available at https://transport.maharashtra.gov.in/Site/Upload/Pdf/mahacts17%20.pdf.
[15] Press Trust of India, India’s First Fleet of 200 Electric Vehicles Launched in Nagpur, dated 26 May 2017, available at http://pib.nic.in/newsite/PrintRelease.aspx?relid=162184.
[16] Press Trust of India, India’s First Fleet of 200 Electric Vehicles Launched in Nagpur, dated 26 May 2017, available at http://pib.nic.in/newsite/PrintRelease.aspx?relid=162184.
[19] S. Prateek, Maharashtra Cabinet approves Electric Vehicle Policy to Manufacture 500,000 EVs, dated 09 February 2018, available at https://mercomindia.com/maharashtra-cabinet-electric-vehicle-policy-evs/.
[20] S. Prateek, Maharashtra Cabinet approves Electric Vehicle Policy to Manufacture 500,000 EVs, dated 09 February 2018, available at https://mercomindia.com/maharashtra-cabinet-electric-vehicle-policy-evs/.
[21] Industries, Energy Labour Department, Government of Maharashtra, Electric Vehicle Policy 2018, dated 14 February 2018, available at https://www.maharashtra.gov.in/Site/Upload/Government%20Resolutions/English/201802141807189810.pdf.
[22] Industries, Energy Labour Department, Government of Maharashtra, Electric Vehicle Policy 2018, dated 14 February 2018, available at https://www.maharashtra.gov.in/Site/Upload/Government%20Resolutions/English/201802141807189810.pdf.
[23] Industries, Energy Labour Department, Government of Maharashtra, Electric Vehicle Policy 2018, dated 14 February 2018, available at https://www.maharashtra.gov.in/Site/Upload/Government%20Resolutions/English/201802141807189810.pdf.
[24] Government of Maharashtra, Maharashtra’s Electric Vehicle and Related Infrastructure Policy — 2018, dated 19 February 2018, available at https://csis-prod.s3.amazonaws.com/s3fs-public/A4-MIDC-Maharashtras-Electric-POLICY.PDF?qsFlIsn3QwQ9cpu1b8eOhDCItiAWPnok.
S. Vyas, EV charging stations to get priority in Maharashtra, dated 25 April 2018, available at https://www.thehindu.com/news/cities/mumbai/ev-charging-stations-to-get-priority-in-maharashtra/article23662506.ece.
[26] Tata Motors, Press Release on Maharashtra Chief Minister Shri Devendra Fadnavis formally hands over 25 ‘Tata Starbus Hybrid Electric Bus’ from Tata Motors to MMRDA, dated 16 March 2018, available at https://www.tatamotors.com/press/maharashtra-chief-minister-shri-devendra-fadnavis-formally-hands-over-25-tata-starbus-hybrid-electric-bus-from-tata-motors-to-mmrda/.
[27] B. Khatri, Maharashtra Gets $1.46 Bn Worth Proposals For Electric Vehicles Push, dates 24 May 2018, available at https://inc42.com/buzz/maharashtra-gets-1-46-bn-worth-proposals-for-electric-vehicles-push/.
[28] The Hindu BusinessLine, Maharashtra ties up with M&M, Tata Motors to deploy 1,000 e-vehicles, dated 31 May 2018, available at https://www.thehindubusinessline.com/news/maharashtra-ties-up-with-mm-tata-motors-to-deploy-e-vehicles/article24049525.ece.
[31] Press Trust of India, MSEDCL to set up 500 electric vehicle charging stations across Maharashtra, dated 20 September 2018, available at https://www.freepressjournal.in/mumbai/msedcl-to-set-up-500-electric-vehicle-charging-stations-across-maharashtra/1359300.
Press Trust of India, MSEDCL to set up 500 electric vehicle charging stations across Maharashtra, dated 20 September 2018, available at https://www.freepressjournal.in/mumbai/msedcl-to-set-up-500-electric-vehicle-charging-stations-across-maharashtra/1359300.
[33] Staff Reporter, Now, only electric vehicles in tiger reserves, dated November 24, 2018, available at https://www.thehindu.com/news/cities/mumbai/now-only-electric-vehicles-in-tiger-reserves/article25581802.ece.
Staff Reporter, Now, only electric vehicles in tiger reserves, dated November 24, 2018, available at https://www.thehindu.com/news/cities/mumbai/now-only-electric-vehicles-in-tiger-reserves/article25581802.ece.
N. Kabeer, Maharashtra Invites Bids to Set Up 50 Electric Vehicle Charging Stations, dated 21 February 2019, available at https://mercomindia.com/maharashtra-bids-50-ev-charging-stations/.
[36] Maharashtra State Electricity Distribution Company Limited, Tender No: MSEDCL/HO/CGM-IT/EVCI OPERATION dated 5 March 2019, available at https://www.mahadiscom.in/supplier/wp-content/uploads/2019/03/Bid-notice_06032019.pdf.
[37] Maharashtra State Electricity Distribution Company Limited, Tender No: MSEDCL/HO/CGM-IT/EVCI OPERATION dated 5 March 2019, available at https://www.mahadiscom.in/supplier/wp-content/uploads/2019/03/Bid-notice_06032019.pdf.
[38] Maharashtra State Electricity Distribution Company Limited, Tender No: MSEDCL/HO/CGM-IT/EVCI OPERATION dated 5 March 2019, available at https://www.mahadiscom.in/supplier/wp-content/uploads/2019/03/Bid-notice_06032019.pdf.
[39] S. Vyas, Now, a portal to register e-vehicles, dated 01 May 2019, available at https://www.thehindu.com/news/national/other-states/now-a-portal-to-register-e-vehicles/article26997347.ece.
Originally published at https://www.ikigailaw.com on May 30, 2019.
