homebusiness Newscompanies NewsDelhi govt notifies EV draft policy for ride aggregators, delivery services

Delhi govt notifies EV draft policy for ride aggregators, delivery services

Indraprastha Gas (IGL) hit a 52-week low after the Delhi government issued a draft EV policy for aggregators. Currently, aggregators account for 30-40 percent of IGL’s sales and the current market price (CMP) implies a terminal volume growth of 6 percent. However, Motilal Oswal believes that the 6 percent volume growth is difficult to achieve considering the rising penetration of EVs.

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By CNBCTV18.com Jan 19, 2022 4:40:30 PM IST (Updated)

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The Delhi government on Saturday notified a draft "aggregator's policy" under which ride aggregators and delivery services will have to mandatorily adopt electric vehicles while procuring new fleet. "Ride aggregators and delivery services will have to mandatorily adopt electric vehicles in their new fleet. The Kejriwal government has become the first in India to draft an aggregator's policy to mandate EV fleet; draft policy has been placed for public opinion for 60 days," a government statement said.

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Environment Minister Gopal Rai said the policy will provide the necessary push to the aggregator industry to become environment friendly. "Aggregators and delivery services would need to ensure 10 percent of all new two-wheelers and 5 percent of all new four-wheelers are electric in the next three months while 50 percent of all new two-wheelers and 25 percent of all new four-wheelers are electric by March 2023, he said.
Reena Gupta, an advisor to the environment minister, said, “The essence of the proposed policy by the GNCTD is to ensure the entire spectrum of vehicles used by aggregators and delivery service providers are brought into the fold of a sustainable, clean and electric mobility, given the impact of large-scale adoption of clean vehicles and the serious concern over the air quality of Delhi.”
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Indraprastha Gas (IGL) hit a 52-week low after the Delhi government issued a draft EV policy for aggregators. Currently, aggregators account for 30-40 percent of IGL’s sales and the current market price (CMP) implies a terminal volume growth of 6 percent. However, Motilal Oswal believes that the 6 percent volume growth is difficult to achieve considering the rising penetration of EVs.
Maintaining a neutral rating on the stock, Motilal Oswal expects domestic APM gas prices, which may witness another steep hike of USD 2-4/mmBtu in April, to put further pressure on the company. It also sees OMCs demanding a doubling of commissions for sale of CNG from their premises as a dampener.
According to Jefferies, IGL could see EBITDA margin compression owing to inadequate APM gas allocation.

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