ELECTRIC VEHICLES IN INDIA: THE LEGAL ASPECT.

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getting outdated.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 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. For
electric two wheelers (e-2W), privately owned vehicles are also provided with subsidy.
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 be exempted from permit requirement for carrying passengers
or goods. MoRTH issued a notification advising states to waive road tax on EVs.

REGULATIONS FOR ELECTRIC VEHICLES IN INDIA

The basic RTO guidelines which are followed by the Conventional Vehicles whether are applied
to Electric Vehicles has been uncertain. But, the Government has come up with few clarifications
on the same like the need of driver’s license as is required for any conventional vehicle remains
the same, electric vehicles to have green number plates and exemption for EVs from paying fees
for the registration certificate. 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. In order to
guarantee adherence to the relevant legislation, the Bureau of Energy Efficiency may
additionally specify a carbon credit system and energy consumption standards for automobiles.
Charging stations may be eligible to receive carbon credits in the future as a result of providing
EVs with renewable energy. The proprietors of EV charging stations might then profit more
from this additional revenue stream.

A government mandate for zero-emission cars (ZEV) may also be used to create percentage
targets for annual EV production/sales. There is a percentage credit requirement for ZEV sales in
the State of California in the US, where these credits can be swapped, for example. Similar to
what Europe has done, India may potentially update its fuel economy regulations to stimulate
technological innovation. The new Bio Waste Medical Rules, which also apply to EV batteries,
impose a "extended producer responsibility" (EPR) framework on batteries that are released onto
the market by defined producers. The regulations are made to enable manufacturers and recyclers
to trade EPR certifications in order to meet their EPR obligations. The new rules usually seek to
encourage new business opportunities, new technological advancements, and investments in the
recycling industry.

Revisions to the regulations on EV charging infrastructure have been made by the Ministry of
Power. The Ministry of Housing and Urban Affairs has also introduced guidelines for adding EV
charging infrastructure to buildings to the model building by-laws of 2016. Additionally, the
viability gap support provided by the Budget for battery energy storage systems may lead to the
development of new infrastructure. The battery switching policy that was released for comments
in April 2022 may soon be finalised by the NITI Aayog. In contrast, the Ministry of Road
Transport and Highways modified the EV battery testing regulations late last year in response to
incidents involving electric two-wheelers catching fire. A few months prior, the Bureau of Indian
guidelines developed EV battery performance guidelines.

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.
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