India needs to pay more heed to the growing electric rickshaw industry

India currently has over 15 lakh e-rickshaws running in city lanes and providing the solution for first-and last-mile connectivity, especially to the middle-income group. To support the budding electric vehicle industry, several policies have been introduced by the government; none that address the presence of potentially unsafe e-rickshaws and their operation by unregistered drivers.

India is not a country raised on gold. Car ownership is a privilege most do not have. A survey conducted at the end of 2018 concluded that car ownership stood at 30 vehicles for every thousand Indians in a country where 1.3 billion people live. Hence, it is safe to say that most Indians do not have the luxury to own personal conveyance. This is where public transportation comes into the picture. In Delhi alone, over 6.8 million people use public transport on a regular basis. However, only a few have their daily routes aligned with those of metros and buses. Enter e-rickshaws. Not only can they be used conveniently, they are also inexpensive and beneficial for drivers.

Growth of electric vehicles in India

India is on the development path with an exponential rise in the number of cities, from 5161 in 2001 to 7935 in 2011. During India’s years of development, a considerable rise in the number of registered vehicles has also been observed, indicating a strong need for viable options for mass transit. Simultaneously, there has been a rise in issues related to vehicular emissions in cities. Conventional fuel powered vehicles have largely contributed to rising pollution levels that are leading to poor air quality and its related health issues. The government has, therefore, been exploring alternative mobility options for the city folk. The most feasible and logical option seems to be electric vehicles (EVs).
Electric rickshaws were introduced in India in 2012. Since e-rickshaws started looming their webs in the fabrics of India’s urban landscape, they have experienced exponential growth. Currently, e-rickshaws make up 83 per cent of the Indian electric vehicle market with over 15 lakh registered e-rickshaws. The Indian e-rickshaw market is expected to reach a market value of US $13,942.2 million by 2025. According to a report published by Prescient & Strategic Intelligence, the rickshaw market is expected to have at least a 33.3 per cent compound annual growth rate between the years 2020-2025. Moreover, e-rickshaws are designed in such a manner that their speed is restricted, making them comfortable for all age groups.

Government policies pushing the industry

Over the years, the government has come up with a number of policies to support the industry’s growth. Faster Adoption and Manufacturing of Hybrid and Electric Vehicles Phase II (FAME-II) scheme (2019), National Electric Mobility Mission Plan (2013), National Urban Livelihood Mission (2013), Pradhan Mantri Mudra Yojna (2015) and Smart Cities Mission (2015), have been some of the policies introduced by the government that helped boost the electric vehicle industry.

The on-ground situation

The recent campaigns have been widely successful, the effect of which is evident in the rapidly growing numbers of e-rickshaws in cities. “An average e-rickshaw driver earns about 500-600 per day,” said Vijay Shukla, an e-rickshaw driver from Delhi. He owns an e-rickshaw that he bought for1.5 lakh. He estimates that a rental e-rickshaw can cost about
400/per day. The initial cost of purchasing an e-rickshaw is0.6 -1.1 lakh, which is cheaper than an internal combustion engine (ICE) based three-wheeler costing `1.5-3 lakh.
He said that the perks of the Switch Delhi campaign and the subsidies offered by the Government of Delhi have given a huge push to drivers to switch to this industry. Shukla, a former cycle-rickshaw owner, believes that EVs are replacing cycle rickshaws in cities. The government has put a restriction of not more than four riders, excluding the driver, to travel together in an EV. When asked about this rule, Shukla waved his hand and said that the rule is only followed in areas where there is traffic police present. Vijay, a registered driver, said that most of his peers are still not registered as they are afraid to come under the government’s spotlight.

Issues with the industry

Since e-rickshaws work on city roads, flouting the rules is much easier for them. The government tries to regulate the industry by standardising EV design, restricting the number of riders and its route. However, the loopholes and bureaucracy in the system allow the drivers to pave their way past them. Ajay Singh, a registered Delhi-based driver, while driving on the main road said that he pays `1500 to the traffic police each month. Calling it a ‘tariff’, he said that it allows him to drive wherever he wants.
The number of unregistered e-rickshaw drivers in the country is far greater than the registered ones. There is no official data that can verify the numbers of e-rickshaws operating in the country. In other words, unregistered drivers are operating in the city without any valid licensing. This compromises the safety of on-board passengers, as well as people on the street.
Estimates by experts suggest that several people who own hundreds of e-rickshaws have rented them out on a per-day basis. Since their motives are influenced by commercial gains, the driving quality is not a concern
for them.
There is also no fixed rate for renting out an e-rickshaw, which lets the owners exploit the drivers. This cartelization of e-rickshaws ensues an unhealthy dynamic wherein the driver is flouting the rules to make more money for themselves and to pay
the rental.
An e-rickshaw, before it starts operating, has to go through a testing process where safety standards (specified by the International Centre for Automotive Technology, and Automotive Research Association of India) are ensured. Despite the prevailing rules, many manufacturers still assemble imported parts from neighboring countries or utilize parts manufactured locally. Even if an e-rickshaw does not pass the eligibility standards, making it unsafe for those on board, it still is purchased by operators due to their low cost.
In July 2014, the Delhi High Court directed the government to ban e-rickshaws after the death of a three-year-old toddler who slipped from his mother’s arm while they were on board. “Their unregulated plying is prima facie a hazard to other traffic on the road as well as to the citizens”, the court had said while hearing a writ petition seeking regulatory reform for e-rickshaws. Recently, Nitin Gadkari, Minister of Road Transport and Highways, Government of India, had offered to provide funding for the remodelling of e-rickshaws if the manufacturers were ready to work alongside any Indian Institute of Technology.

So, what is the solution?

In the e-rickshaw industry, there is a vacuum created by its unorganized side. Dr Sewa Ram, Professor of Transport Planning, School of Planning and Architecture – Delhi, suggests that drivers go through a different licensing system. Drivers involved in paratransit cannot go through the same certification process as a normal driver as they are associated with the safety of other users. If such a requirement is put in place, it would automatically curb the issue of registration. A policy could be put in place where the drivers are required to carry two licenses on them.
E-rickshaws are designed in such a way that drivers cannot exceed the pre-set speed limit. However, local manufactures are using more powerful batteries that allow the e-rickshaws to run at a faster speed. Dr Ram suggests that the government could put in place more stringent policies that specify the mechanics of the e-rickshaw. The government could work in association with the manufacturers to make the e-rickshaw safer for the occupants in case of an accident. E-rickshaws are an intrinsic part of the lives of middle-income groups and thus there is an urgent need for their regulation.