The Delhi government has announced the Motor Vehicle Aggregator Scheme 2023. The scheme aims at regulating cab-aggregators and delivery service providers in the state.

A draft of the scheme was approved by Chief Minister Arvind Kejriwal on Wednesday. The draft scheme has now been sent to the Delhi lieutenant governor (LG). After the approval of the LG, The draft will be put up for public feedback and comments by the Transport Department, after which it will be given a final shape.

While approving the scheme, Kejriwal said the Motor Vehicle Aggregator Scheme 2023 lays the foundation for regulating aggregators and delivery service providers in Delhi. “This scheme prioritises the safety of passengers and ensures timely grievance redressal, while also promoting the use of electric vehicles and reducing pollution levels in the city,” he said.

The chief minister further explained that by transitioning to electric vehicles and promoting electric bike taxis, the government will be able to reduce pollution levels in Delhi and create new opportunities for employment and economic growth.

The Motor Vehicle Aggregator Scheme 2023 will be applicable to any person or entity that operates, on-boards, or manages a fleet of motor vehicles through digital or electronic means or any other means to ferry passengers or connect a driver offering to deliver or pick up a product, courier, package, or parcel to connect with a seller, e-commerce entity, or consignor.

The scheme aims to ensure passenger safety during trips and service quality of cab aggregators while also promoting the transition to electric vehicles. It will make it mandatory for aggregators to install a panic button and integration with 112 (Delhi Police) for emergencies. The scheme also includes a mechanism to ensure timely consumer grievance redressal by service providers, enforcement of vehicle fitness, pollution control, and validity of permits. It also provides for driver remedial training in instances where the driver’s performance is poor.

The scheme will also mark a historic first for the nation where a state government will be introducing a mandatory transition of commercial vehicles from conventional vehicles to electric vehicles. The scheme provides for phased mandates for fleet operators to transition their fleet from conventional vehicles to electric. These mandates only apply to an incremental percentage of new on-boarded vehicles over a period of four years to avoid any knee-jerk reactions to existing livelihoods. For example, 5 per cent of new onboarded cars need to be electric in the first 6 months of the scheme.

The policy further mandates that after 4 years from its notification, all new commercial 2 wheelers and 3 wheelers will need to be EVs. Similarly, after 5 years from its notification, all new commercial 4 wheelers need to be EVs. The Aggregator and Delivery service provider will also be mandated switch to all electric fleet by April 1, 2030.

The scheme also lays the foundation for a regulatory provision for bike taxis and rent-a-bike services. Since Delhi has never permitted bike-taxis to operate in the city, the scheme provides for such services to be regulated in the city.  As a new business opportunity, the scheme ensures that all bike-taxis and two-wheeler renting services in the city will only be via electric two-wheelers. These provisions are in-line with the Delhi EV Policy 2020.

The scheme follows a ‘polluter pays’ principle. This will make the per vehicle licence fee for a conventional vehicle significantly higher than an electric vehicle. For instance, the licence fee for an electric taxi may be zero but the licence fee of a CNG taxi may be Rs 650. Secondly, all licence fees and penalties under the scheme will also be credited to the State EV Fund, which in turn supports all EV promotional activity.

Talking about the draft scheme, Delhi Transport Minister Kailash Gahlot said Delhi has achieved another milestone today with its Motor Vehicle Aggregator Scheme. “This is happening for the first time in India when a state has given targets to the aggregator to electrify their fleets and regulating such service providers in the city, with the goal of ensuring passenger safety and reducing pollution with sustainable public transportation in the city. We have introduced a polluter pays principle, where onboarding of any electric vehicle will have zero licence-fee.”

He said the scheme also lays the foundation for a regulatory provision for bike taxis (two-wheeler ride-hailing services) and rent-a-bike services.

Under the leadership of Chief Minister Arvind Kejriwal, the Delhi government is committed to create a sustainable and environment friendly transport system for its citizens, he added.