INTRODUCTION
The introduction of electrical vehicles in the industry of vehicles has been seen as a positive and encouraging step as electric vehicles are environment friendly as compared to the motor vehicles. Transport is a fundamental requirement of modern life, but the traditional motor vehicles are getting outdated. Increase in the number of electric bikes by manufacturers like Ola, Ether, Komaki, etc., on roads shows that the consumers are shifting from conventional vehicles to electric vehicles. Petrol and diesel vehicles are highly polluting, these are being replaced by electric vehicles. As the need for sustainable transportation solutions grows, electric vehicles have emerged as a promising alternative to conventional motor vehicles. But, the regulations, infrastructural needs and laws need to be properly framed for the electric vehicles as there remains a question under which act or law can electric vehicles be regulated or is there a need of a specific act to regulate electric vehicles. This article delves into the difference between electric vehicles and motor vehicles and the regulatory framework for the same.
ADVANTAGES OF ELECTRIC VEHICLES OVER MOTOR VEHICLES
Electric vehicles have numerous advantages over conventional vehicles. Fully electric vehicles (EV) have zero tailpipe emissions and are much better for the environment. The running cost of an electric vehicle is much lower than an equivalent petrol or diesel vehicle. Electric vehicles use electricity to charge their batteries instead of using fossil fuels like petrol or diesel. Electric vehicles are more efficient, and that combined with the electricity cost means that charging an electric vehicle is cheaper than filling petrol or diesel for your travel requirements. Using renewable energy sources can make the use of electric vehicles more eco-friendly. The electricity cost can be reduced further if charging is done with the help of renewable energy sources installed at home, such as solar panels. Driving an electric vehicle can help one reduce their carbon footprint because there will be zero tailpipe emissions. The cost of running an electric vehicle is significantly cheaper when compared to the traditional fuel-based cars. Considering only 3 components power an electric vehicle- on- board charger, inverter, and motor- there is less wear and tear and therefore a reduced need for maintenance.
STEPS TAKEN BY INDIAN GOVERNMENT TO PROMOTE ELECTRIC VEHICLES
The Government has granted exemption to Battery Operated Transport Vehicles and Transport Vehicles running on Ethanol and Methanol fuels from requirement of permit. In order to promote electric vehicles, the Government has notified for retro-fitment of hybrid electric system or electric kit to vehicles and has specified the type approval procedure of electric hybrid vehicles. Ministry of Power has issued a policy on charging infrastructure and has issued a notification clarifying that charging electric vehicles will be a service, not a sale of electricity. The Government notified Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) Scheme with a budgetary outlay of Rs. 10,000 crore for a period of five years commencing from 1st April, 2019 to promote hybrid/ electric technology in transportation so as to reduce dependency on fossil fuels and to address issues of vehicular emissions. As far as e-Buses, electric three wheelers (e-3W) and electric four wheelers (e-4W) are concerned, the scheme provides subsidy to those vehicles which are used in public transportation or for commercial use. For electric two wheelers (e-2W), privately owned vehicles are also provided with subsidy. FAME II intends to support 7,090 e-Buses, 5 lakh e-3 Wheelers, 55,000 e-4 Wheeler Passenger Cars (including Strong Hybrid) and 10 lakh e-2 Wheelers. GST on electric vehicles has been reduced from 12% to 5%; GST on chargers/ charging stations for electric vehicles has been reduced from 18% to 5%. Ministry of Road Transport and Highways (MoRTH) announced that battery-operated Vehicles will be given green license plates and be exempted from permit requirement for carrying passengers or goods. MoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.
REGULATIONS FOR ELECTRIC VEHICLES IN INDIA
Regulations and guidelines issued by the Ministry of power include guidelines for Charging Infrastructure for Electric Vehicles (EVs). Guidelines issued by Ministry of Housing and Urban Affairs, Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme" by Department of Heavy Industries. E-mobility: National Mission on Transformative Mobility and Battery Storage by NITI Aayog. National Programme on Advanced Chemistry Cell (ACC) Battery Storage by Department of Heavy Industries . Green License Plates for Electric Vehicles by Ministry of Road Transport and Highways . Advised States to minimise road tax on EVs and licence to drive electric scooters to those in the age group of 16-18 years by Ministry of Road Transport and Highways.
ELECTRIC VEHICLES AND THE MOTOR VEHICLES ACT, 1988
The inherent contrast between how motor vehicles and electric vehicles (EVs) operate creates a challenge in applying identical laws to both. In this section, we will explore a few distinctions between the two and gain a brief understanding of why EVs necessitate a separate regulatory framework.
As previously stated, motor vehicles rely on internal combustion engines, whereas the majority of EVs run on batteries. This fundamental difference in propulsion necessitates distinct standards for authorizing the operation of EVs compared to conventional vehicles.
While the Motor Vehicles Act of 1988 (MV Act) does not specifically address laws pertaining to electric cars and buses, it does provide regulations for e-rickshaws and e-carts. E-rickshaws and e-carts are recognized as a distinct category under the MV Act, but the process of regulating them has been tumultuous, if not more so.
E-rickshaws have had a longstanding presence in India, yet they were largely unregulated. In 2016, there were no requirements for registration, licensing, or even a driving test for e-rickshaw drivers. This lack of regulation resulted in a chaotic situation, with inadequate records for e-rickshaws and their drivers. Furthermore, in the event of accidents, it became challenging to hold the responsible individuals accountable.
Presently, e-rickshaws and e-carts are subject to more comprehensive regulation. The previous law that allowed e-rickshaws to operate without registration or licensing has been repealed and different states in the country have established their own guidelines. These guidelines prioritize customer safety. Currently, most e-rickshaws must adhere to the standards set by the Automotive Research Association of India and the Central Motor Vehicles Rules. However, e-rickshaws that have a maximum speed of 25km/h and operate at 250 watts are exempt from these compliance requirements.
According to Section 2A of the MV Act, e-rickshaws and e-carts are defined as follows: "For the purposes of this section, 'e-cart or e-rickshaw' means a specialized battery-powered vehicle with a power capacity not exceeding 4000 watts. It has three wheels and is used for transporting goods or passengers, whether for hire or reward. The vehicle must be manufactured, constructed, or adapted, and equipped and maintained according to the specified regulations."
Section 27 of the MV Act grants the Central Government the authority to establish rules regarding e-carts and e-rickshaws, while Sections 7 and 9 outline the requirements for obtaining a driving license for e-rickshaw and e-cart drivers, respectively but as the increase in number of electric cars and bikes only the inclusion of e- carts and e- rickshaws under the ambit of the Motor Vehicles Act of 1988. There is a dire need for these electric vehicles to be regulated by some law or the other. So the question arises here is that, should electric vehicles come under the MV Act or the Government needs to bring a whole new act for the regulation of Electric Vehicles?
In my opinion the Government should come up with a new act to regulate the Electric Vehicles on various aspects like the permit required, clarified provisions on charging infrastructure for Electric Vehicles, safety standards, Electric Vehicles in Public Transport, Battery Disposal Laws, separate safe parking places for Electric Vehicles, etc.
CONCLUSION
There is a lot of ground to cover, including the requirement to produce more affordable EV models, particularly in the four-wheeler segment, to ensure the safety of EVs, to set up adequate charging infrastructure in public spaces, to offer a steady stream of incentives to manufacturers and consumers, to train the workforce in advanced skills, to enhance forward and backward industrial linkages, to facilitate a switch to renewable energy sources for the production of electricity, and more.
It is clear that improving infrastructure through legislation, regulations, and financial investments is crucial. In addition to battery infrastructure, charging stations, maintenance facilities, and battery production facilities, EVs will require Li-ion storage facilities as well as hubs for recycling and disposal. The government must support equal infrastructure growth on all EV market fronts. Significant investment opportunities and extensive government regulations will undoubtedly make it possible for the Indian electric car market to grow in the years to come.
REFERENCES
Shubham Thakare, et al., “Decarbonizing transportation in India: Policy framework, charging infrastructure, and impact of electric vehicles on the grid by 2030,” TERI Discussion Paper, New Delhi: The Energy and Resources Institute, 2021.
Yash Sharma, “New EV battery safety norms stricter, yet unavoidable: EV manufacturers,” Financial Express, September 8, 2022.
Press Information Bureau, “NITI Aayog and RMI release technical analysis of FAME II scheme,” April 5, 2019.
Anandini Sood and Kopal Kesarwani 'Electric Vehicles in the Indian Legal Domain" (JPIEL, 11 May 2022)
Rumi Aijaz, “Electric Vehicles in India: Filling the Gaps in Awareness and Policy,” ORF Occasional Paper No. 373, October 2022, Observer Research Foundation.
Rumi Aijaz, “Global Approaches to Vehicle Electrification and Their Lessons for India,” ORF Issue Brief No. 624, March 2023, Observer Research Foundation.
Written by Adv. Paarth .N. Chanchlani, Founding Partner, CLAWW
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