1. Introduction
India has been active in creating policies for a robust e-mobility market in the country. The government of India has been supportive and encouraging of the nascent electric vehicle (“EV”) sector. With a vision to achieve 30% e-mobility by 2030,[1] the government of India has launched various programs like the National Electric Mobility Mission Plan (“NEMMP”),[2] Nation E-Mobility Program,[3] and Faster Adoption and Manufacturing of Hybrid and Electric Vehicles’ (“FAME”)[4] to promote the e-mobility sector in India.
Against the background of such initiatives, Karnataka, Uttar Pradesh, Maharashtra, Telangana and Delhi, among others,[5] came up with their EV policies to take advantage of the growing industry and promote eco-friendly alternatives to fossil-fueled automobiles. Karnataka has emerged as one of the leaders amongst all states in the country, in promoting e-mobility. The government of Karnataka has expressed that it intended to make Bengaluru the ‘Electric Vehicle Capital of India’.[6] In order to rightly earn the sobriquet, the Karnataka government has actively taken measures to promote e-mobility in the state. Here we take a look at the development of the e-mobility regulatory framework in Karnataka.
2. Timeline of initiatives undertaken by the Karnataka government
08 March 2014– The Bangalore Metropolitan Transport Corporation (“BMTC”) began the trial of an electric bus for public transport in the city of Bengaluru, on two major routes.[7] The bus was lent by Build Your Dreams (“BYD”) Co. Ltd., a leading Chinese electric bus manufacturer.[8] Bengaluru thus became the first city in India to have an electric bus plying on its roads.[9]
07 October 2014– The government of Karnataka proposed a number of indirect incentives such as a reduced road tax and registration tax on EVs.[10]
03 December 2014– The Karnataka government partnered up with ‘Global Green Growth Institute’ (“GGGI”) to publish a report called ‘Green Growth Strategy for Karnataka’[11] with comprehensive analysis of the hurdles in the development of EV sector in Karnataka.[12] It also provided recommendations for adopting EVs and other green energy initiatives in the state.[13]
06 May 2016– The Karnataka government came up with specific regulations for the plying of e-rickshaws in the state.[14] This was in response to the amendments made by the central government in the Motor Vehicles Act, 1988 with respect to e-rickshaws.[15]
August 2016– The Karnataka government in furtherance of its partnership with the GGGI, published a report titled ‘Electric Buses in India: Technology, Policy and Benefits’[16] The report comprehensively laid down the impact and benefits of shifting to EVs,[17] the infrastructural requirements,[18] trends and challenges in the EV industry,[19] and a brief outlook of the existing central government’s policies on EVs.[20]
12 October 2016– The ‘Bangalore Electricity Supply Company’ (“BESC”) dropped the idea of state-wide installation of EV charging station since they could not come up with the right revenue model.[21] A private/public partnership was suggested, with the project finally being outsourced to a private company and BESC providing support.[22]
07 March 2017– BMTC revealed its plan of procuring 150 electric buses.[23] The then BMTC director Ekroop Caur also revealed that they were working on developing a “single integrated multimodal transport mobile application”[24] for promoting the uptake of the EVs in the state.
25 November 2017– Karnataka became the first state in India to release its own EV policy, titled ‘Karnataka Electric Vehicle & Storage Policy 2017’[25] (“EV Policy”). The policy kicked into force on 25 November 2017. This policy was to be in place for 5 years or until a new policy was announced.[26] The EV Policy provided for specific objectives and strategies to achieve the government’s plan to reach 100% electric mobility by 2030.[27] It also provided for incentives for research and development of EVs in the state,[28] and subsidies for establishment of EV charging stations.[29]
02 January 2018– The Karnataka government, in its official statement, declared that it would purchase 640 EVs under the central government’s FAME scheme.[30]
08 February 2018– In lieu to promote usage of EVs in the state, the BESC decided to set up 11 charging stations in Bengaluru.[31] BESC also decided to replace 100 of its vehicles used for official purposes, fuelled by diesel or petrol, with EVs. The replacing was to be done in phases.[32]
18 February 2018– The chief minister, Siddaramaiah, launched the ‘E-Mobility Awareness Campaign’[33] in Karnataka and flagged off 50 EVs, borne out of the Karnataka government’s partnership with ‘Mahindra and Mahindra’ (“M&M”) for the promotion of the adoption of EVs in Karnataka. M&M also announced additional investment of INR 400 crores over the next 5 years in the State to promote e-mobility.[34] In addition to it, the Baghirathi group announced the launch of its brand ‘RydS’ which aimed to lower the carbon content in the atmosphere and achieve zero emission sustainable mobility solutions for all.[35] ‘RydS’ also aimed to deploy 1000 EVs in the state.[36]
20 February 2018–The BESC unveiled the first public EV charging facility, at its headquarters in Bengaluru.[37]
14 May 2018– The Karnataka Electricity Regulatory Commission (“KERC”), while determining the tariff of electricity supply for the fiscal year 2019, taking cognizance of the importance of EVs, proposed different tariffs for electricity that was supplied to ‘high tension’ and ‘low tension’ EV charging stations.[38] These rates were heavily subsidized.[39]
05 July 2018– The chief minister, H D Kumaraswamy, while presenting the state budget for 2018-19, proposed to establish 100 EV charging stations at a cost of INR 4 crore to encourage the use of EVs in order to control “increasing air pollution in Bengaluru city.”[40] He further declared that the government was planning to purchase 4326 new electric buses for public use.[41]
15 October 2018– The BESC unveiled the second electric vehicle charging facility in the premises of the KERC. For the users, the price was fixed at INR 4.85 per unit.
09 February 2019– The government of Karnataka in its 2019-20 budget proposed to establish charging facility for two-wheeler EVs in 10 metro stations in Bengaluru.[42]
20 March 2019– The chief minister, K J George, announced that 50 percent of the government-run vehicles in the state would be electric by the end of 2019.[43] During the ‘Future Mobility Show 2019’, he also announced that the government was developing provisions for providing preferential parking spots for EVs,[44] and adequate signage in the urban areas for guiding EVs to the nearest charging station.[45]
21 March 2019– The BESC declared its intention of further establishing 112 EV charging stations in government premises.[46] It also revealed plans for establishment of EV charging stations alongside the highways in the state.[47]
(Authored by Ritwik Prakash Srivastava, a third-year undergraduate student of National Law Institute University, Bhopal during his internship with Ikigai Law. Tuhina Joshi, Associate, and Nehaa Chaudhari, Public Policy Lead gave inputs.)
[1] Press Information Bureau, Shri RK Singh launches National E-Mobility Programme in India; congratulates EESL for installation of 50 lakh LED street lights, dated 07 March 2018, available at http://pib.nic.in/newsite/PrintRelease.aspx?relid=177134.
[2] 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.
[3] Press Information Bureau, Shri RK Singh launches National E-Mobility Programme in India; congratulates EESL for installation of 50 lakh LED street lights, dated 07 March 2018, available at http://pib.nic.in/newsite/PrintRelease.aspx?relid=177134.
[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] 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.
[6] Government of Karnataka, Karnataka Electric Vehicle & Energy Storage Policy 2017, at page 7, available at https://indianstates.csis.org/uploads/KarnatakaStateElectricVehicleEnergyStoragePolicy2017.pdf.
[7] CSTEP-Shakti Sustainable Energy Foundation, Implementation Plan for Electrification of Public Bus Transport in Bengaluru, at Page 7, available at http://www.indiaenvironmentportal.org.in/files/file/Roadmap%20for%20the%20Electrification%20of%20Public%20Transportation%20in%20Bengaluru.pdf.
[8] CSTEP-Shakti Sustainable Energy Foundation, Implementation Plan for Electrification of Public Bus Transport in Bengaluru, at Page 7, available at http://www.indiaenvironmentportal.org.in/files/file/Roadmap%20for%20the%20Electrification%20of%20Public%20Transportation%20in%20Bengaluru.pdf.
[9] The Hindu Staff Reporter, India’s first electric bus plying in Bangalore draws cheers, dated 08 March 2014, available at https://www.thehindu.com/news/cities/bangalore/indias-first-electric-bus-plying-in-bangalore-draws-cheers/article5764931.ece.
[10] Commerce and Industries Department of Government of Karnataka, Karnataka Industrial Policy 2014-19, at page 65 paragraph 5.17.2.v, dated 7 October 2014, available at http://itbt.karnataka.gov.in/Documents/karnataka-industrial-policy-2014%20(1).pdf
[11] Global Green Growth Institute, Green Growth Strategy for Karnataka, at Page 28, dated 03 December 2014, available at http://gggi.org/site/assets/uploads/2017/11/2014-12-Green-Growth-Strategy-for-Karnataka.pdf.
[12] Global Green Growth Institute, Green Growth Strategy for Karnataka, at Page 28, dated 03 December 2014, available at http://gggi.org/site/assets/uploads/2017/11/2014-12-Green-Growth-Strategy-for-Karnataka.pdf.
[13] Global Green Growth Institute, Green Growth Strategy for Karnataka, at Page 28, dated 03 December 2014, available at http://gggi.org/site/assets/uploads/2017/11/2014-12-Green-Growth-Strategy-for-Karnataka.pdf.
[14] Government of Karnataka, Transport Secretariat Notification No. SARIE 168 SAEPA 2015 (P), dated 6 May 2016, available at http://transport.karnataka.gov.in/uploads/news/E-rickshaws-Scheme.pdf.
[15] Government of Karnataka, Transport Secretariat Notification No. SARIE 168 SAEPA 2015 (P), dated 6 May 2016, available at http://transport.karnataka.gov.in/uploads/news/E-rickshaws-Scheme.pdf.
[16] Global Green Growth Institute, Electric Buses in India: Technology, Policy and Benefits, dated August 2016, available at http://gggi.org/site/assets/uploads/2016/10/2016-08-Electric-Buses-in-India-Technology-Policy-and-Benefits.pdf.
[17] Global Green Growth Institute, Electric Buses in India: Technology, Policy and Benefits, at page 49, dated August 2016, available at http://gggi.org/site/assets/uploads/2016/10/2016-08-Electric-Buses-in-India-Technology-Policy-and-Benefits.pdf.
[18] Global Green Growth Institute, Electric Buses in India: Technology, Policy and Benefits, at page 39, dated August 2016, available at http://gggi.org/site/assets/uploads/2016/10/2016-08-Electric-Buses-in-India-Technology-Policy-and-Benefits.pdf.
[19] Global Green Growth Institute, Electric Buses in India: Technology, Policy and Benefits, at page 63, dated August 2016, available at http://gggi.org/site/assets/uploads/2016/10/2016-08-Electric-Buses-in-India-Technology-Policy-and-Benefits.pdf.
[20] Global Green Growth Institute, Electric Buses in India: Technology, Policy and Benefits, at page 57, dated August 2016, available at http://gggi.org/site/assets/uploads/2016/10/2016-08-Electric-Buses-in-India-Technology-Policy-and-Benefits.pdf.
[21] U. Yadav, Bescom pulls the plug on charging points for electric vehicles in Bengaluru, dated 12 October 2016, available at https://tech.economictimes.indiatimes.com/news/technology/bescom-pulls-the-plug-on-charging-points-for-electric-vehicles-in-bengaluru/54804473.
[22] U. Yadav, Bescom pulls the plug on charging points for electric vehicles in Bengaluru, dated 12 October 2016, available at https://tech.economictimes.indiatimes.com/news/technology/bescom-pulls-the-plug-on-charging-points-for-electric-vehicles-in-bengaluru/54804473.
[23] Express News Service, Eco-friendly commute: 150 electric buses to hit namma Bengaluru streets, dated 07 March 2017, available at http://www.newindianexpress.com/cities/bengaluru/2017/mar/07/eco-friendly-commute-150-electric-buses-to-hit-namma-bengaluru-streets-1578545.html.
[24] Express News Service, Eco-friendly commute: 150 electric buses to hit namma Bengaluru streets, dated 07 March 2017, available at http://www.newindianexpress.com/cities/bengaluru/2017/mar/07/eco-friendly-commute-150-electric-buses-to-hit-namma-bengaluru-streets-1578545.html.
[25] M. Agarwal, With a Target to Raise $4.83 Bn, Karnataka Becomes First State to Roll Out Electric Vehicle and Energy Storage Policy, dated 15 September 2017, available at https://inc42.com/buzz/karnataka-state-electric-vehicle-policy/.
[26] Government of Karnataka, ‘Order CI 117 SPI 2017’, Bengaluru, (2017), available at https://indianstates.csis.org/uploads/KarnatakaStateElectricVehicleEnergyStoragePolicy2017.pdf.
[27] Government of Karnataka, ‘Order CI 117 SPI 2017’, Bengaluru, (2017), at Paragraph 5.1.2, dated 25 September 2017, available at https://indianstates.csis.org/uploads/KarnatakaStateElectricVehicleEnergyStoragePolicy2017.pdf.
[28] Government of Karnataka, ‘Order CI 117 SPI 2017’, Bengaluru, (2017), at Paragraph 5.3, dated 25 September 2017, available at https://indianstates.csis.org/uploads/KarnatakaStateElectricVehicleEnergyStoragePolicy2017.pdf.
[29] Government of Karnataka, ‘Order CI 117 SPI 2017’, Bengaluru, (2017), at Paragraph 5.2, dated 25 September 2017, available at https://indianstates.csis.org/uploads/KarnatakaStateElectricVehicleEnergyStoragePolicy2017.pdf.
[30] S. Modgil, Karnataka Government to buy 640 Electric Vehicles Under FAME India Scheme, dated 02 January 2018, available at https://inc42.com/buzz/karnataka-government-electric-vehicles-fame-india/.
[31] The Quint, ‘Bengaluru to Get Charging Stations for Electric Cars’, dated 08 February 2018, available at https://www.thequint.com/news/india/bengaluru-latest-news-bescom-to-launch-ev-charging-stations.
[32] The Quint, ‘Bengaluru to Get Charging Stations for Electric Cars’, dated 08 February 2018, available at https://www.thequint.com/news/india/bengaluru-latest-news-bescom-to-launch-ev-charging-stations.
[33] Special Correspondent, ‘Chief Minister launches e-Mobility campaign’, dated 18 February 2018, available at https://www.thehindu.com/news/cities/bangalore/chief-minister-launches-e-mobility-campaign/article22787182.ece.
[34] The Hindu, ‘Chief Minister launches e-Mobility campaign’, dated 18 February 2018, available at https://www.thehindu.com/news/cities/bangalore/chief-minister-launches-e-mobility-campaign/article22787182.ece.
[35] Mahindra, Mahindra Electric and Baghirathi Group jointly power Karnataka’s EV dream, available at https://www.mahindra.com/news-room/press-release/mahindra-electric-and-baghirathi-group-jointly-power-karnatakas-ev-dream.
[36] Mahindra, Mahindra Electric and Baghirathi Group jointly power Karnataka’s EV dream, available at https://www.mahindra.com/news-room/press-release/mahindra-electric-and-baghirathi-group-jointly-power-karnatakas-ev-dream.
[37] Stephen, BESCOM Sets Up The First Public Electric Vehicle Charging Station in Bangalore, dated 20 February 2018, available at https://www.drivespark.com/off-beat/bescom-sets-up-first-public-electric-vehicle-charging-station-in-bangalore-024990.html.
[38] Karnataka Electricity Regulatory Commission, Determination of Retail Supply Tariff for FY19, at page 124, dated 14 May 2018, available at https://bescom.org/wp-content/uploads/2018/05/8-BESCOM-CHAPTER-6.pdf.
[39] Karnataka Electricity Regulatory Commission, Determination of Retail Supply Tariff for FY19, at page 124, dated 14 May 2018, available at https://bescom.org/wp-content/uploads/2018/05/8-BESCOM-CHAPTER-6.pdf.
[40] T. Poojary, Karnataka Budget 2018: E-vehicles, charging stations plans unveiled, dated 05 July 2018, available at https://yourstory.com/2018/07/e-vehicles-charging-stations-plans-unveiled-in-karnataka-budget/.
[41] T. Poojary, Karnataka Budget 2018: E-vehicles, charging stations plans unveiled, dated 05 July 2018, available at https://yourstory.com/2018/07/e-vehicles-charging-stations-plans-unveiled-in-karnataka-budget/.
[42] Madur, Your Guide to Karnataka Budget 2019-20, dated 14 February 2019, available at https://www.karnataka.com/govt/karnataka-budget-2019-20/.
[43] S. Dogra, 50% Of Karnataka Govt. Run Vehicles Will Be Electric By The End Of The Year Confirms Minister, dated 20 March 2019, available at https://www.indiatimes.com/technology/news/50-of-karnataka-govt-run-vehicles-will-be-electric-by-the-end-of-the-year-confirms-minister-362889.html.
[44] S. Dogra, 50% Of Karnataka Govt. Run Vehicles Will Be Electric By The End Of The Year Confirms Minister, dated 20 March 2019, available at https://www.indiatimes.com/technology/news/50-of-karnataka-govt-run-vehicles-will-be-electric-by-the-end-of-the-year-confirms-minister-362889.html.
[45] S. Dogra, 50% Of Karnataka Govt. Run Vehicles Will Be Electric By The End Of The Year Confirms Minister, dated 20 March 2019, available at https://www.indiatimes.com/technology/news/50-of-karnataka-govt-run-vehicles-will-be-electric-by-the-end-of-the-year-confirms-minister-362889.html.
[46] C. V. Ramani and K. C. Deepika, 112 EV charging stations to be operational by August-end, dated 21 March 2019, available at https://www.thehindu.com/news/cities/bangalore/112-ev-charging-stations-to-be-operational-by-august-end/article26600263.ece.
[47] C. V. Ramani and K. C. Deepika, 112 EV charging stations to be operational by August-end, dated 21 March 2019, available at https://www.thehindu.com/news/cities/bangalore/112-ev-charging-stations-to-be-operational-by-august-end/article26600263.ece.
