For zero-emission urban freight delivery

NITI Aayog’s ‘Shoonya’ initiative, aimed at fully electrifying urban delivery vehicles in the next two years, makes sense. The shoonya, or zero-emission, electric vehicles (EVs) would reduce pollution levels, curtail petroleum imports and bring macroeconomic benefits. Urban freight vehicles account for over 10% of carbon emissions in the transportation sector, and the segment’s emissions are projected to grow as much as 114% over the decade. Hence the pressing need for a proactive policy to curb these emissions.

Besides, the estimated 175 million two-wheelers on the road today consume the bulk of petrol nationally; other freight vehicles also considerably boost demand for diesel or compressed natural gas (CNG). And reducing demand for oil- or CNG-fuelled vehicles by revving up volumes in EVs would mean environmental and economic gains. Almost 97% of vehicles here are still powered by the internal combustion engine (ICE). But in segments like two-wheelers, EVs already have a 17% share. The way ahead clearly is to better allocate resources for a well-developed ecosystem for EVs so as to fast-forward the change in the techno-economic paradigm in transport and logistics away from the ICE.

Already, consumption taxes on EVs are a fraction of those on conventional vehicles. A production-linked incentive scheme for the automobile sector designed to boost output of EVs has been announced. What’s needed are supportive infrastructure for EVs such as quick-charging stations, and proactive policy for production of batteries, to gainfully speed up the diffusion of EVs. We do need to device a technology policy for batteries that better leverages domestic endowments. Fuel cells running on green hydrogen is another option that holds tremendous potential.