CEA mulling special tariff for EVs

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Kolkata | Published: February 24, 2018 5:56:31 AM

The Central Electricity Authority (CEA) is considering a special category tariff for electric vehicles (EVs) to facilitate mass transit through such vehicles.

Central Electricity Authority, electric vehicles, Sandesh Sharma, EESL, Power Finance Corporation, NTPC, Power Grid Corporation, LED bulb industryActions are already happening on the ground towards making EVs more popular and Energy Efficiency Services (EESL) will float a global tender for 10,000 electric vehicles to be used by government organisations. (Reuters)

The Central Electricity Authority (CEA) is considering a special category tariff for electric vehicles (EVs) to facilitate mass transit through such vehicles. CEA principal chief engineer Sandesh Sharma said, “We will shortly formulate a policy for electric vehicles and the policy should ideally be aimed towards off-peak charging during daytime.” With renewable tariffs gradually getting rationalised, a special category tariff can be worked out for electric vehicles, Sharma said. CEA’s chief engineer Vijay Meghani said in Delhi there was already a special category tariff for electric vehicles – Rs 5.50 – but that didn’t have any element of cross subsidy in it. However, in Andhra Pradesh, tariffs for electric vehicles were as high as Rs 11, but there needs to be “regularity tariff pushes for mass transit system” through electric vehicles, Meghani said.

Actions are already happening on the ground towards making EVs more popular and Energy Efficiency Services (EESL) will float a global tender for 10,000 electric vehicles to be used by government organisations. The tender is likely to be floated in April. While Andhra Pradesh alone wants to procure 10,000 electric vehicles, Gujarat wants to procure around 5,000. EESL, the joint venture of four power PSUs — NTPC, Power Finance Corporation, Rural Electrification Corporation and Power Grid Corporation — had disrupted the LED bulb industry by floating bulk tenders that led to an eight-fold decline in price of a 9-watt LED bulb in three years.

The bidder for the first tender, namely Tata Motors, quoted Rs 11. 2 lakh per car. The industry expects wider participation under the second tender and prices might come down to a range of `10 lakh per car, Meghani said, adding that in the next five years, India should have a considerable large market for electric cars and all policy regulations should be ready before that.

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