How to get healthy, wealthy and green

The year 2017 turned out to be a landmark one for the idea of clean mobility in India. While the Government announced a 2030 timeline to stop sale of fossil fuel-powered vehicles in favour of electric vehicles, the Supreme Court put on hold the sale of vehicles running on BS-III emission standards.

Transport continues to be a major contributor to greenhouse gas emissions, and health experts have long been underlining its impact on air quality. Transport activity will continue to grow, making it important to phase-in a mobility system that is clean, sustainable and health-friendly.

Policy measures must include major incentives, not just for clean energy transport providers but also for commuters. At the same time the Government must expand its vision to include a larger bunch of green transport options. Budget 2018 mustincentivise R&D in electric vehicles; announce schemes to improve public transport in polluted cities; and provide the necessary push towards building sustainable infrastructure for cycle users. What are some of the key areas to focus on?

Long-term support to electric vehicle manufacturers : Announcing a timeline is not enough, the Government must also look at incentivising private companies to invest more in R&D. It must also look at the possibility of offering tax breaks to manufacturing units that produce electric vehicles. Creating ‘special zones’ for such plants is another lucrative option. The UK is putting in place a £400 million Charging Investment Infrastructure Fund for this, comprising a £200 million investment by the government matched by an equal investment by the private sector. The Indian government must consider a similar exercise.

Augmenting infrastructure : The Government recently announced that ₹7 lakh crore worth of roads and highways will be constructed. Budget 2018 should fast-track these projects. Better roads will have a multiplier effect on several sectors. The infrastructural boost must also include a thrust on making the country EV-friendly. For instance, Europe has stipulated regulations, requiring 10 per cent of parking spaces in new buildings to have recharging facilities by 2023. Every new or refurbished house in will also need to be equipped with an EV recharging point. The Budget must set out plans to partner private players for the purpose of putting in place charging stations.

Reward clean commuters : Rather than just focus on the supply side of clean commuting, it would also be helpful to turn to the demand side and offer incentives directly to end-users. Countries like Belgium, Luxembourg and France are actually paying their citizens for cycling to work. The mode of rewards includes cycling reimbursements based on kilometres cycled, income tax breaks for buying bikes or mobility vouchers. In another interesting global example, Scotland offers interest-free loans to buyers of electric cars, in a bid to bring about a mass change in consumer behaviour. Fiscal incentives to this effect can also be considered for major Indian cities to encourage people to turn to clean mobility options.

Giving cycling its due in the urban infrastructure : A study of bus commuters in Delhi found that around 7 per cent of commuters had total trip lengths of less than 5 km. Similarly, another study found that as many as 80 per cent of bus commuters owned cycles but very few of them used them to reach bus stops; they walked or hired a short distance commute vehicle. These commuters are an important group of potential cyclists, and can actively take to cycling if provided safe riding lanes and parking spaces.

Countries like Netherlands and Denmark have championed the cause cycling by making it safe and comfortable. The urban infrastructure in these countries gives priority to cyclists through measures like dedicated cycling lanes, extensive parking for bicycles and integration with public transport. In India, bicycles can become an important mode of last-mile connectivity in cities where people have to cover significant distances to their homes or offices after stepping out of public transport. Imagine a scenario where you step out of a metro station in Delhi and can ride a bicycle home every evening using a bicycle sharing system, rather than looking for an autorickshaw, a tricycle or walking long distances. We can make it happen with the right policy push.

Incentivise investment in R&D for e-bikes : The market for electric bicycles (e-bikes) is in a nascent stage in India. However, e-bikes can play a significant role on Indian roads. Though there has been remarkable progress in product innovation and quality enhancement in making e-bikes user-friendly and durable in recent years, more needs to be done. There is further need to improve battery technology as well as technology for engines and body of vehicles to increase efficiency. The Government must also pay attention to this sector. Manufacturers investing in e-bikes and electric pedal assisted cycles (Epac) technology must be offered tax breaks and policy support to enable them make more efficient and affordable products.

The writer is the CMD of Hero Cycles

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