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Nitin Gadkari said that it's an inhuman practice for one person to carry another
So he decided to replace cycle rickshaws with e-rickshaws
The CRAZY part? The e-rickshaw mkt is expected to generate $456 million by 2030
Here's why e-rickshaw is going to be the next big thing:
Before we get into anything, did you know, the phenomenon of our modern-day urbanized space- the RICKSHAW was originally invented in Japan in 1869?
— and it essentially meant human-powered vehicle. It made its way to India in the 1880s and for the first time appeared in Shimla.
Initially, it was only used for the transportation of goods, but with time it created class differentiation
— as the rich & affluent started using it as their private vehicle.
Rickshaws weaved its way into the intricate fabric of the transportation system in India to its core.
It has become innate to our country's transportation system
— and one of the major sources of earning for the deprived section of our society.
Rickshaw pullers with visible veins and perspiring skin have no resources to do anything other than bearing and pulling the weight
— sometimes double or triple their own.
A country like ours, couldn't become a superpower and reach the goal of a $5 trillion economy without providing a more humane and dignified means of employment to this underprivileged section of our society.
But with the invention of e-rickshaw, maybe we've got a real solution to a more equitable future.
See, e-rickshaws significantly reduce the physical labour and strain on the driver because their electric motor provides the primary propulsion force.
Moreover, they're designed to carry more passengers, which in turn increases the daily income of e-rickshaw drivers.
And what would be your reaction if we tell you that these wonder vehicles are making our society more inclusive
— by giving a real chance to women and some marginalized communities to earn their livelihoods?
Government with the help of some public & private authorities and a few visionary startups, is tending towards building an ecosystem to boost the adoption of e-rickshaws.
Let's understand how.
Many people face a significant challenge in improving their lives. Due to limited earnings, they are incapable of affording the upfront payment necessary to own the vehicle that runs their livelihood.
So they resort to renting cycle-rickshaws and auto-rickshaws from large contractors who own these vehicles.
But for these helpless people, the government is now extending a helping hand in two ways:
1. Ease in availing loans- securing loan from any institution used to be a very tough process for the lower income people, and that too without collateral.
👉 MSME e-rickshaw loan scheme- Govt. asked public banks like BOI & PNB to launch schemes for easy financing of e-rickshaws
Under this loan scheme, borrowers can receive a loan amount of up to 80% of the on-road cost of the vehicle.
👉 Deendayal e-rickshaw Yojana- under this scheme, people can take a collateral-free loan at a 3% interest rate.
👉 PM Mudra Yojana- This scheme offers low-interest loans to small enterprises in the following categories, which must be repaid within five years:
Shishu – Up to Rs. 50,000 in loans
Kishore – Loans between Rs 50,001 and Rs 5,00,000.
This program also applies to the purchasing of electric rickshaws.
2. Subsidies- Govt is offering subsidies to people on the purchase of their e-rickshaws, which reduces its overall cost.
👉 PM rickshaw Yojana- This scheme offers an opportunity to apply for a loan
— with a minimal initial deposit of only 10-15% of the total amount.
Beneficiaries have a 4-year repayment period for the loan, and in addition, the govt is extending a subsidy of Rs. 50,000 to support the initiative.
E-rickshaws weren’t always this pocket-friendly. They were actually costlier than the auto-rickshaws.
So to make these EVs more affordable for the deprived classes, the government subsidized their manufacturing- directly & indirectly.
For ex. Govt. started providing subsidies on the production of batteries that power these e-rickshaws
- Li-ion & SLA batteries have witnessed a sharp decline in their prices.
Moreover, the GST council keeps on reducing the GST rates for these batteries.
The GST rates on lithium-ion battery packs have been reduced by the government from 18% to 5%t which is the lowest tax category.
A prominent issue with the lower adoption of EVs is the lack of charging stations.
However, the govt has already formulated plans to address this concern as well. Under the FAME India scheme, the Ministry of Heavy Industries has sanctioned the construction of 2,877 EV charging stations across multiple states, as well as 1,576 stations across numerous highways.
To bring about a change, the government made adjustments to the laws. They streamlined the process of registering and licensing e-rickshaws, making the paperwork involved much more straightforward and efficient.
Govt is not the only entity which is contributing towards building a supportive and conducive environment for e-rickshaws adoption.
There are many startups and NGOs, operating in Tier 2&3 cities which are playing a very crucial part in this EV revolution and adoption.
But maybe we'll cover it in some other read.
