The Delhi government’s draft aggregator scheme, ‘Delhi Motor Vehicle Aggregator Scheme 2022’, states that all cab companies, food delivery services and online retailers must switch to all-electric fleets by April 1, 2030.
The government is seeking feedback on the draft scheme within the next three weeks.
The scheme states: “In exercise of the powers conferred to the State Government under sub-section (3) of section 67 of the Motor Vehicle Act, the Transport Dept, GNCTD here by prepares the following the Delhi Motor Vehicle Aggregator Scheme for licensing and regulation of aggregators providing passenger transport services and for regulation of other delivery aggregators providing delivery service of goods and commodities, including last-mile delivery service providers in the National Capital Territory of Delhi.”
In this case ‘aggregator’ means any person or entity that owns, operates, or manages a fleet of vehicles, either through a digital or electronic facility, or through any other means to connect a passenger with a driver for the purpose of transportation, or for a driver offering to deliver/pick up a product, package, or parcel to connect with a seller, e-commerce entity, or consignor.
The department stated that this scheme is applicable to aggregators with at least 25 motor vehicles in their aggregated fleet, as well as vehicles that the aggregator may integrate and they would be required to take a licence for operating in the NCT of Delhi, henceforth.
“This scheme shall be applicable to aggregators which have on-boarded 2-W, 3-W, and 4-W motor vehicles only, and shall not apply for buses,” the draft noted.
Adoption of EV in New Fleet
The policy also highlights the timeline during which aggregators need to ensure the percentage of EV adoption in the new fleet.
For three-wheelers (passenger):
• Within the first six months from the day of notification of the scheme: 10%
• Within one year from the day of notification of the scheme: 25%
• Within two years from the day of notification of the scheme: 50%
• Within three years from the day of notification of the scheme: 75%
• Within four years from the day of notification of the scheme: 100%
For four-wheelers (passenger):
• Within the first six months from the day of notification of the scheme: 5%
• Within the first nine months from the day of notification of the scheme: 15%
• Within one year from the day of notification of the scheme: 25%
• Within two years from the day of notification of the scheme: 50%
• Within three years from the day of notification of the scheme: 75%
• Within four years from the day of notification of the scheme: 100%
For two-wheelers and three-wheelers (commercial):
• Within the first six months from the day of notification of the scheme: 10%
• Within the first nine months from the day of notification of the scheme: 25%
• Within one year from the day of notification of the scheme: 50%
• Within two years from the day of notification of the scheme: 75%
• Within three years from the day of notification of the scheme: 100%
For four-wheelers (commercial):
• Within the first six months from the day of notification of the scheme: 5%
• Within the first nine months from the day of notification of the scheme: 15%
• Within one year from the day of notification of the scheme: 25%
• Within two years from the day of notification of the scheme: 50%
• Within three years from the day of notification of the scheme: 75%
• Within four years from the day of notification of the scheme: 100%
E-Commerce and Cab Aggregators
The policy stated that the e-commerce companies need to ensure that fleet operators and transportation service providers follow the scheme and all such entities need to comply with the provisions of the scheme “in cases they own/operate vehicles for either passenger mobility or delivery services”.
Additionally, the proposed policy also specified how cab aggregators should deal with drivers. It says that in the case of ‘Last-Mile Delivery Aggregators’, drivers shall have valid documents such as a driving licence and registration certificate at the time of onboarding.
However, the draft policy also stated: “The Passenger Transport Aggregator shall be required to take appropriate action against the driver-partners having 15% or more grievances for the rides undertaken by him/her in a period of one (1) month. The data so referred shall be stored/collected by the Aggregator for at least 3 months from the date of service provided.”
Furthermore, it added that the aggregator should implement corrective training and actions to address the problems for drivers with ratings below 3.5 over the course of a year.
The draft also noted that the aggregator needs to provide the Transport Department with quarterly reports on driver ratings and grievances received against drivers, and all records pertaining to driver ratings and grievances registered should be available for inspection by the Transport Department/authorized authorities of the Government of National Capital Territory of Delhi.
In cases where the aggregator has failed to apply for the licence and declare the vehicles and drivers currently operating in the NCT of Delhi within three months of the date of notification of the guidelines, the aggregator shall be liable to pay a monetary fine of Rs 25,000 per vehicle.
If the information on the vehicle operated by the aggregator is not submitted to the Department of Transport, Delhi Government, the aggregator would be fined Rs 15,000 per vehicle.
Additionally, the policy stated that if the aggregator operates/manages a fleet of conventional vehicles in the NCT of Delhi after April 1, 2030, the aggregator will be subject to a monetary fine of Rs 50,000 per vehicle.
It also noted that if it is discovered that any aggregator is violating the terms and conditions prescribed in the scheme or any other orders of the Transport Department, or engaging in any unlawful activities, the Competent Authority may, at its discretion, suspend or cancel the said Aggregator’s Licence after hearing the Aggregator or conducting such inquiry as it deems just and proper.
“Where a License is suspended or cancelled, the Aggregator shall immediately stop all operations under the License till the time such suspension is revoked,” the draft added.
However, any aggregator who is dissatisfied with a suspension or cancellation order issued by the Competent Authority, within 30 days of receiving the order, can file an appeal with the Appellate Authority, as designated by the Transport Department.
Electrifying Delhi Roads
It is noteworthy that transportation has been the leading cause of pollution in the capital and the recent scheme is expected to help combat this particular issue.
However, the Delhi administration has also passed the Delhi EV policy, intended primarily to electrify last-mile delivery vehicles because it understood that EV adoption represented a significant chance to reduce air pollution.
Here it should be noted that to complement the Delhi EV policy with on-the-ground implementation, the Deliver Electric Delhi project was started by the Dialogue and Development Commission of Delhi (DDC), RMI, and RMI India with the help of 35 top business leaders and the pilot was established to determine the best course for completely electrifying last-mile delivery vehicles.
According to the website of RMI India: “By 2030, if electric final-mile delivery vehicles reach 100% sales penetration, there could be as many as 7.5 lakhs of these vehicles on the road, avoiding 14.2 million tonnes of CO2, 46,900 tonnes of nitrogen oxide or NOx, and 530 tonnes of particulate matter (PM) emissions over the vehicles’ lifetime.”
However, regarding the draft scheme an industry insider Banwari Lal Sharma, Consumer Business of CarTradeTech CEO, told News18 that this policy “is a welcome move” and would provide the right impetus for the EV stakeholders in the long run.
According to Sharma: “The guidelines for cab aggregators to take action against errant drivers should also help bring about discipline in the sector.”
“The government is asking for feedback from everyone, but this should be accepted well by the industry,” he added.
Sharma also stated that the transition toward EVs is gradually happening but such incentives will accelerate the transition process.
Additionally, he said: “I think this deadline is going to help and particularly in a segment that has so much opportunity, lead cab companies, and food delivery firms will generate opportunities. Also, the total cost of operations of the cab aggregators will come down and additionally benefit customers along with the environment.”
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