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Why e-rickshaws are no big draw for Delhi drivers despite Kejriwal govt’s purchase subsidy

While govt says subsidies have been availed on 9,558 e-rickshaws to date, data compiled by road ministry portal Vahan 4.0 has shown dip in registration of e-rickshaws since 2019.

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New Delhi: While electric rickshaws, or e-rickshaws, can be spotted on the streets of Delhi any given time of day, their more primitive predecessors, the three-wheeler cycle rickshaws continue to remain a prominent mode of transport, straining to keep up with the capital’s fast-moving traffic.

Despite the financial incentives being offered by the Arvind Kejriwal-led government to accelerate adoption of the quicker and environment-friendly e-rickshaw under its Electric Vehicles Policy, introduced in 2020, many rickshaw-pullers in Delhi are reluctant to make the switch. The reasons behind this are many, ranging from unaffordability due to extreme poverty, lack of awareness about government incentives, and a general fear of the unknown.

Salman, who rides a cycle rickshaw in the Pitampura and Shakurpur areas, tells ThePrint: “Even the rickshaw I use is not my own. I rent it for Rs 50 a day. Where will I get money to buy an e-rickshaw?”

Despite his advanced age, Salman believes prefers the cycle rickshaw because its rent is very low compared to that paid by e-rickshaw drivers. “The rent of an e-rickshaw is around Rs 400 per day. My earning is also around Rs 400-500. If I pay that much rent for an e-rickshaw, what will I be left with?” 

Scouting passengers at Pitampura’s Kohat Enclave Metro station is Man Singh Choudhary, an e-rickshaw driver. Choudhary says only a very few people own their e-rickshaws, which cost around Rs 1.5 lakh each, while all others in the area rent them from Pitampura gaon (village) for Rs 300/day. 

“I get Rs 500-600 for driving an e-rickshaw. My earning, after paying rent, is reduced to Rs 200-300. I rent the house in which I am living with my family. All my money goes into feeding them, and on school and tuition for my two children,” he said. “People are able to buy e-rickshaws only after taking huge loans or selling their lands. I don’t even own a house or land to sell.”

In contrast to the impoverished e-rickshaw drivers, many small businessmen who rent out these vehicles make a good profit. Pawan, owner of Mini Metro, an electric vehicles dealer in Rohini, told ThePrint that he makes a monthly profit of Rs 30,000-45,000 renting out 10 e-rickshaws for Rs 350 each a day.  

“I earn around Rs 100-150 from each (e-rickshaw) because I have to pay for battery charging and other expenses,” he added.

Some rickshaw-pullers acknowledge the convenience of e-rickshaws, saying that customers who want to reach their destinations quickly prefer them, also because they are affordable.

Salman confesses he would have opted for an e-rickshaw, but it was the cost of it all that put him off: “If I had the money, I would have bought an e-rickshaw. It is easier and I am old.”

In a bid to make the city the ‘EV capital of India’, the Delhi government, under its EV policy, has planned to increase the sale of Battery Electric Vehicles (BEVs) in a way that it contributes to 25 per cent of all new vehicle registrations by 2024.

The measures taken include a subsidy of Rs 30,000 and 5 per cent interest subvention on loans if they are availed from Delhi Finance Corporation (DFC) on purchase of BEVs, along with a waiver of road tax and registration fees on registered vehicles. 

Subsidies have been availed on 9,558 e-rickshaws to date (since the EV policy was introduced in 2020). However, according to information provided by the Delhi transport department, data compiled by Vahan 4.0 a centralised vehicle registration portal under the Ministry of Road Transport and Highways has shown a dip in registration of e-rickshaws since 2019.

While Salman said he was unaware of the government policy, Choudhary expressed doubts regarding the financial incentives.

“For availing the subsidies, one has to make a deposit of Rs 50,000 to get the e-rickshaw. We get subsidies only after six months, where will I get that kind of money to make a deposit?” he asked. 

Contacted by ThePrint, Vinod Kumar Yadav, deputy commissioner in the Delhi Transport Department, said subsidies provided by the government were the highest in the country and they couldn’t reduce the cost of e-rickshaws any further since the expense of manufacturing remains high. 

“Price is high but the sale of e-rickshaws is picking up. We have tried our best to manage the price in a way that can increase its sales. The issue of high prices is common to all e-vehicles cars, autos, etc,” he added. “But since the competition is increasing and different models are coming up, the prices are bound to go down. Many other states are also now copying our policy.” 

Yadav also said his department has taken measures to prevent people from making a business out of selling EVs under the policy.

“The policy allows only one person to avail of subsidy and other incentives on one e-rickshaw by showing their Aadhaar card. If people want to buy more, they can do it from the market without using our policy,” he added. 

He further said the department is trying to create awareness through the media, adding that it was after the EV policy was covered by TV channels and newspapers that registration of e-vehicles in Delhi jumped “from 1 per cent to 10 per cent within a year”. 


Also Read: Battery swaps coming by mid-2023 to make driving an electric vehicle easier & cheaper


Despite subsidies, a drop in e-rickshaw registration

According to a 2021 report by the International Energy Agency a Paris-based autonomous intergovernmental organisation that works with countries to shape energy policies the number of electrified two‐ and three‐wheelers in India has grown by more than 60 per cent each year on average since 2015. 

In Delhi, 21,554 electric vehicles (EVs) were registered in 2021-22, which is 10 per cent of the total number of vehicles, Deputy Chief Minister Manish Sisodia had said last month. 

According to Yadav, Rs 28.67 crore has been disbursed for subsidies availed on 9,558 e-rickshaws to date, and a lot of requests for subsidies are in process. 

However, a look at year-wise Vahan 4.0 data on e-rickshaw registration showed a decline after 2019, when 19,745 e-rickshaws were registered within a year. In 2020, this figure stood at 8,097, and it was 11,745 in 2021.

The fall in demand can be attributed to everything from the pandemic to other harsh realities on ground. 

Most of the e-rickshaw drivers ThePrint spoke to said they do not own their vehicles, and rent from businesses with a large stock of e-rickshaws that provide battery-charging facilities. These e-rickshaw drivers also lack licences, which are required to avail of government incentives.  

Bhagawan Das, 35, who drives an e-rickshaw in Delhi University’s North Campus, said he is left with just Rs 200-300 after paying Rs 400 as vehicle rent. 

Like Salman, he said he didn’t know about the government loan scheme on e-rickshaws. Even after being informed about it, he said he wanted to steer clear of taking a loan since he would have to pay interest on the purchase of an item that costs around Rs 1 lakh-1.5 lakh, which would be a very expensive deal for him. 

“To get subsidies also, I will have to first deposit Rs 40,000-50,000 and then get my money back,” Das added. 

Some of the e-rickshaw drivers who have availed of the government scheme also weren’t much in favour of it.

Pankaj from Kailash Colony said he used Kejriwal’s scheme and bought an e-rickshaw for Rs 1.50 lakh, for which he gave Rs 60,000 cash and took a loan of Rs 90,000, and got a subsidy of Rs 30,000. 

“I got a subsidy only after buying a very expensive item that cost me Rs 1.50 lakh. And I still have to pay Rs 3,000 every month for getting it charged,” he told ThePrint.

Easier alternatives, fear of theft 

E-rickshaws in Delhi are generally operated as shared modes of transport. For example, strangers headed for the same Metro station take one e-rickshaw, which stops along the way to pick up more fares who want to go in the same direction.

Each vehicle accommodates four passengers, and among its advantages over the cycle rickshaw is that the portion above the driver’s head is covered for protection against the elements.

Muhammad Kamal, 38, who moved to Delhi from Bihar just 3-4 months ago, says it is not just profitable to ride cycle rickshaws as opposed to the electric alternative, they are “preferred by commuters in areas like Greater Kailash, Lajpat Nagar and Kailash Colony”.

“E-rickshaws are not allowed on many roads because they cause traffic jams and big cars get disturbed. They have only one route. I can drive my rickshaw anywhere, no one can stop me,” he added. 

Another rickshaw puller from the same area, which may be considered more upscale compared to other parts of Delhi, agreed with Kamal. He said school children and office-goers prefer cycle rickshaws, especially when they are in a hurry, adding that they also don’t prefer sharing because of Covid-19.

There is also a general fear of owning vehicles because of theft. Tuntun Rai from Moolchand said that if his rickshaw got stolen, he would not have the money to buy a new one.  

“It’s easier to rent because then I get a designated place for my rickshaw. If I buy one, where will I keep it? It will get stolen and I know that battery rickshaws get stolen more easily,” said the 71-year-old, who was also concerned about where he would be able to get an e-vehicle charged. 

Kamal said “driving a cycle rickshaw is hard work, painful”. “But one has to work hard to earn money. Where will we get the money if we don’t pull rickshaws?” he added. He said he has now gotten used to riding rickshaws in Delhi’s sweltering heat and “takes pride” in doing so.

(Edited by Gitanjali Das)


Also Read: To encourage e-mobility, Modi govt proposes exempting registration fee for battery vehicles


 

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