E Rickshaw

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 100

2015-16

Acknowledgement

This study has been undertaken by a team led by Ms. Kanika Kalra (Urban Transport Expert, IUT)
with support from Ms. Anindita Ghosh (Urban Transport Planner, IUT), Mr. Ishan Chanda (Urban
Transport Planner, IUT), Mr. Ritesh Goenka (Urban Transport Planner, IUT) and Ms. Baveena K.V.
(Urban Transport Planner, IUT). The team is also thankful to Mr. C.L. Kaul (Executive Secretary and
Officiating Director General, IUT) and Mr. M.L.Chotani (Consultant, IUT) for their constant
guidance and support which is an important source of inspiration and mentor for the conduct of this
study. The team is grateful to Mr. M.K.Sinha (Officiating Director General, IUT) and Mr. Sumit
Chatterjee (Officiating Executive Secretary) for their constant support and encouragement.

The team would like to thank all the stakeholders (RTOs, Municipal Corporation, Traffic Police, e-
rickshaw drivers, manufacturers and users of concerned cities) for their constant assistance in
providing information as well as granting in-person interviews.
List of Abbreviations

AC: Alternate Current


ADB: Asian Development Bank
AIS: Automotive Industry Standards
ARAI: The Automotive Research Association of India
Ah: Ampere Hour
B.E.: Bachelor of Engineering
BRT: Bus Rapid Transit
BRTS: Bus Rapid Transit System
CA: Chartered Accountant
CCS: Central Control Station
CDIA: Cities Development Initiative for Asia
CEO: Chief Executive Officer
CITU: Centre of Indian Trade Unions
CMC: Common Mobility Card
CNG: Compressed Natural Gas
CPCB: Central Pollution Control Board
CSE: Centre for Science and Environment
DIMTS: Delhi Integrated Multi-modal Transport System
DC: Direct Current
DPL: Double the Poverty Line
DOL: Department of Labour
DOT: Department of Transport
DRI: differential rate of interest
DTI: Department of Trade and Industry
DTO: District Transport Office
DTSI: Digital Twin Spark ignition
EGR: Exhaust Gas Recirculation
EIG: Economic Interest Group
EMI: Equated Monthly Installment
EV: Electric Vehicle
ETM: Electronic Ticket Machine
EWS: Economically Weaker Sections
FAME: Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India
GHG: Greenhouse Gas
GPRS: General Packet Radio Service
GPS: Global Positioning System
GOI: Government of India
GTR: Global Technical Regulations
HC: Hydrocarbon
HDFC: Housing Development Finance Corporation
ICAT: international Centre for Automotive Technology
ICCT: International Council on Clean Transportation
IDA: International Development Association
ID: Identity
IPT: Intermediate Public Transport
IS: Indian Standards
IT: Information Technology
ITS: Intelligent Transport System
JnNURM: Jawaharlal Nehru National Urban Renewal Mission
LIB: Lithium-ion Battery
LIC: Life Insurance Corporation of India
LRTS: Light Rail Transit System
Max.: Maximum
MBA: Master of Business Administration
MC: Municipal Corporation/ Council
M.E.: Master of Engineering
Min.: Minimum
MoEF: Ministry of Environment and Forest
MORTH: Ministry or Road Transport and Highways
MoU: Memorandum of Understanding
MoUD: Ministry of Urban Development
MNRE: Ministry of New and Renewable Energy
MRTS: Mass Rapid Transit System
MUDRA: Micro Units Development and Refinance Agency
MV: Motor Vehicles
NARI: Nimbkar Agricultural Research Institute
NCR: National Capital Region
NCT: National Capital Territory
NEMMP: National Electric Mobility Mission Plan
NGO: Non-Governmental Organisation
NMHC: Non Methane Hydro Carbon
NMT: Non-Motorized Transport
NTTT: National Taxi Task Team
NPS: New Pension System
NUTP: National Urban Transport Policy
NTDPC: National Transport Development Policy Committee
ONGC: Oil and Natural Gas Corporation
PC: Personal Computer
PHEV: Plug-in Hybrid Electric Vehicles
PIS: Passenger Information System
PM: Particulate matter
PPP: Public-private partnership
PT: Public Transport
Pvt.: Private
RBI: Reserve Bank of India
Rs.: Rupees
R&D: Research & Development
RTA: Regional Transport Agency
RTO: Regional Transport Office
SC: Scheduled Caste
SIAM: Society of Indian Automobile Manufactures
SPV: Special Purpose Vehicle
ST: Scheduled Tribe
STU: State Transport Undertakings
SUDA: State Urban Development Agency
TMC: Traffic Management Centre
TMS: Traffic Management System
TWUISPL: Three-wheelers United India Services Private Limited
UNECE: United Nation Economic Commission of Europe
USA: United States of America
V: Volt
w.r.t.: with respect to
Table of Contents
Executive Summary ............................................................................................................................... i

Chapter 1: Introduction ....................................................................................................................... 1

1.1 Need for the Study ........................................................................................................................ 1

1.2 Scope of Work .............................................................................................................................. 2

1.3 Methodology ................................................................................................................................. 3

1.4 Limitations of the Study ................................................................................................................ 6

1.5 Structure of the Report .................................................................................................................. 6

Chapter 2: Electric Rickshaw- Literature Review ............................................................................... 7

2.1 Definition...................................................................................................................................... 7

2.2 Provisions under Motor Vehicle Act, 1988 .................................................................................... 7

2.3 Schemes & Initiatives by the Government ..................................................................................... 8

2.4 Advantages & Disadvantages of Electric Rickshaw ....................................................................... 9

Chapter 3: Case Studies...................................................................................................................... 11

3.1 Electric Rickshaw in Manila, Philippines ..................................................................................... 11

3.2 Electric Rickshaw Rajshahi, Bangladesh ..................................................................................... 13

3.3 Electric Rickshaw Sylhet, Bangladesh ......................................................................................... 14

3.4 Learnings from Case Studies ....................................................................................................... 15

Chapter 4: Existing Situation in Indian Cities ................................................................................... 16

4.1 Availability of Electric Rickshaw in the city ................................................................................ 16

4.2 Role of Electric Rickshaws in cities ............................................................................................. 16

4.3 Regulatory Bodies ....................................................................................................................... 17

4.4 Routes ......................................................................................................................................... 17

4.5 Fare Structure.............................................................................................................................. 17

4.6 Legislative Support ..................................................................................................................... 17

4.7 Vehicle Characteristics ................................................................................................................ 18

4.8 Infrastructure Facilities................................................................................................................ 18

4.9 Licensing Procedure .................................................................................................................... 19

4.10 Drivers Survey .......................................................................................................................... 19

4.11 Drivers Views and Suggestions ................................................................................................. 25


4.12 Users Survey ............................................................................................................................ 27

4.13 Comparative Analysis ............................................................................................................... 30

4.14 Conclusion ................................................................................................................................ 31

Chapter 5: Major Issues ..................................................................................................................... 32

5.1 Absence of Regulatory Framework for Electric rickshaw ............................................................. 32

5.2 No Economic Stability for Drivers .............................................................................................. 34

5.3 Lack of Infrastructure Facilities ................................................................................................... 34

5.4 Lack of Social Benefits for the Drivers ........................................................................................ 35

5.5 Lack of Usage of Modern Technology ........................................................................................ 36

5.6 Lack of Financial Support ........................................................................................................... 37

5.7 Lack of Ownership / Institution for the Electric Rickshaws.......................................................... 38

5.8 Conclusion.................................................................................................................................. 38

Chapter 6: E-Rickshaw Vehicle Technology ...................................................................................... 39

6.1 Growth of Electric Vehicles in India ............................................................................................ 39

6.2 Vehicle Design ............................................................................................................................ 40

6.3 Fitness/Compliance Test Certificates ........................................................................................... 44

6.4 Battery Technology used in Electric Rickshaw ............................................................................ 44

6.5 Usage of ITS on electric rickshaws .............................................................................................. 47

6.6 Future Areas of R&D .................................................................................................................. 48

6.7 Manufacturers ............................................................................................................................. 48

6.8 Challenges & Constraints ............................................................................................................ 49

Chapter 7: Alternative Development Scenario: Financial Model for E-Rickshaw ........................... 51

7.1 Alternative Scenarios Developed for Financing ........................................................................... 51

7.2 Comparative Analysis of the Different Options ........................................................................... 59

7.3 Recommendation ........................................................................................................................ 59

Chapter 8: Institutional Framework for E-Rickshaws ...................................................................... 60

8.1 Alternatives for Institutional Framework for E-Rickshaws ........................................................... 60

8.2 Comparative Analysis of the Different Options ........................................................................... 63

8.3 Suggested Organizational/Staffing Structure for SPV .................................................................. 64

8.4 Organizational/Staffing Structure of Special Cell ........................................................................ 65

8.5 Functions of SPV/ Special cell .................................................................................................... 65


Chapter 9: Recommendations ............................................................................................................ 67

9.1 Regulatory Framework for E-Rickshaw ....................................................................................... 67

9.2 Economic Stability of Drivers ..................................................................................................... 69

9.3 Infrastructure Facilities................................................................................................................ 70

9.4 Social Benefits for the Drivers ..................................................................................................... 72

9.5 Vehicle Technology .................................................................................................................... 73

9.6 Usage of Modern Technology like ITS ........................................................................................ 74

9.7 Financing of E-Rickshaw Vehicles .............................................................................................. 74

9.8 Institution for E-Rickshaw........................................................................................................... 76

9.9 Minimum Fare Structure ............................................................................................................. 76

Chapter 10: Way Forward ................................................................................................................. 79

References ........................................................................................................................................... 80

Annexure
List of Figures
Figure 1: Methodology of Study ............................................................................................................. 5

Figure 2: e-trike in Philippines .............................................................................................................. 11

Figure 3: Electric Rickshaw Rajshahi, Bangladesh ................................................................................ 13

Figure 4: Electric rickshaws in Sylhet, Bangladesh................................................................................ 14

Figure 5: E-Rickshaws near Metro Station, Delhi .................................................................................. 16

Figure 6: E-Rickshaws in Agartala ........................................................................................................ 18

Figure 7: e-rickshaw parked along road side .......................................................................................... 18

Figure 8: Qualifications of drivers ......................................................................................................... 19

Figure 9: Age Groups of Drivers ........................................................................................................... 20

Figure 10: Ownership of vehicles .......................................................................................................... 20

Figure 11: E-rickshaw ownership scenario in five cities ........................................................................ 21

Figure 12: Avg. no. of passengers per day ............................................................................................. 21

Figure 13: Average no. of passengers per day in five cities .................................................................... 21

Figure 14: Overloaded e-rickshaws ....................................................................................................... 22

Figure 15: Present source of funding for buying e-rickshaw .................................................................. 22

Figure 16: Income per day .................................................................................................................... 23

Figure 17: Preferences of driver for selecting e-rickshaws ..................................................................... 25

Figure 18: Suggestions for improvement ............................................................................................... 26

Figure 19: Age group users ................................................................................................................... 27

Figure 20: Trip Purpose ........................................................................................................................ 27

Figure 21: Average Distance Travelled by Passengers ........................................................................... 27

Figure 22: Expenditure/month incurred on e-rickshaw .......................................................................... 28

Figure 23: Driver's Behaviour ............................................................................................................... 28

Figure 24: Reasons for using e-rickshaws by users ................................................................................ 29

Figure 25: Users Suggestions ................................................................................................................ 29

Figure 26: e-rickshaws stopping on middle of roads to board passengers ............................................... 34

Figure 27: Passengers waiting for other passengers ............................................................................... 36

Figure 28: NARI Motor Assisted Pedal Rickshaw (MAPRA) ................................................................ 39

Figure 29: ELECSHA ........................................................................................................................... 39


Figure 30: Salamander e-rickshaw by H2O ........................................................................................... 48

Figure 31: Suggested Structure of SPV ................................................................................................. 64


List of Tables

Table 1: List of Cities Selected for the Study ........................................................................................... 3

Table 2: Advantages & Disadvantages of using e-rickshaws.................................................................. 15

Table 3: Income of Drivers per month ................................................................................................... 23

Table 4: Savings per month ................................................................................................................... 24

Table 5: Driver’s Suggestions ............................................................................................................... 30

Table 6: Users Suggestion ..................................................................................................................... 30

Table 7: Comparative Analysis of drivers and users perception ............................................................. 31

Table 8: Overall Design Specifications according to SUDA, UP ........................................................... 41

Table 9: Motor Specifications according to SUDA, UP ......................................................................... 42

Table 10: Battery Specifications according to SUDA, UP...................................................................... 43

Table 11: Efficiency Specifications according to SUDA, UP ................................................................. 43

Table 12: Fitness/ Compliance Certificates according to SUDA, UP ..................................................... 44

Table 13: Comparison of different types of Batteries used in Three Wheelers ........................................ 47

Table 14: Comparison of different e-rickshaw vehicle w.r.t Pricing & other Characteristics................... 48

Table 15: Merits and Demerits of Self-employment Scheme ................................................................. 51

Table 16: Merits and Demerits of Green Business Scheme .................................................................... 52

Table 17: Merits and Demerits of Government Pradhan Mantri Mudra Yojana (PMMY) ....................... 53

Table 18: Merits and Demerits of Nationalized Bank Scheme ............................................................... 54

Table 19: Merits and Demerits of Micro Financing Scheme .................................................................. 55

Table 20: Ecocabs model of Fazilka:- Merits & Demerits ...................................................................... 55

Table 21: Merits and Demerits of Separate Private Company ................................................................ 56

Table 22: Merits and Demerits of Corporate Financing ......................................................................... 57

Table 23: Merits and Demerits of SPV formation .................................................................................. 58

Table 24: Merits and Demerits of Complete Government Initiative ....................................................... 60

Table 25: Merits and Demerits of NGOS/ Private ownership ................................................................. 61

Table 26: Merits and Demerits of SPV/ Special cell formation .............................................................. 62

Table 27: Merits and Demerits of Aggregator Model ............................................................................. 63

Table 28: Staffing Requirement of SPV ................................................................................................ 64

Table 29: Recommended no. of e-rickshaws in cities ............................................................................ 69


Table 30: EMI for different rate of interests (5 years term loan)............................................................. 75

Table 31: EMI for different rate of interests (3 years term loan)............................................................. 75

Table 32: Summary for EMI for different loans scenario ....................................................................... 75

Table 33: Calculation of Driver's Income (Owned Vehicle Scenario)..................................................... 77

Table 34: Calculation of driver's income (Rented Vehicle Scenario) ...................................................... 78


Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Executive Summary

Introduction
E-rickshaws have emerged as an environment friendly, convenient and affordable mode of transport
providing first and last mile connectivity to the metro and bus users. It promotes inclusive growth in
urban areas by providing mass transport facility to urban poor. It has huge potential to provide
employment opportunities to the urban poor. Emerged as a new concept during the last few years its
popularity has extended to various parts of the country. The e-rickshaws are popular as a means of last
mile connectivity in large cities like Delhi and as a means of public transport in small cities like Roorkee
and Agartala. In July 2014 the e-rickshaws were banned in Delhi by the Delhi High Court over safety
concerns raised through public interest litigation later on with the change of policy, the High court issued
an order emphasizing the need for regularization of e-rickshaws in cities. Subsequently, in March, 2015
the Indian parliament passed an amendment to the Motor Vehicle Act 1988 in the form of The Motor
Vehicles (Amendment) Act, 2015 legalizing e-carts or e-rickshaws with a vehicle power not exceeding
4000 watts.

NUTP, 2006 and NTDPC report also emphasised on promoting the use of cleaner technologies and use of
electric vehicles to reduce vehicular pollution. There is a need to shift to sustainable mode of transport
wherever possible as electric rickshaws are considered to be a cost effective mode.

Need of Study
In order to understand the existing status of e-rickshaws in Indian cities in terms of their penetration,
operational pattern, design, structure, capacity, feasibility, legality, acceptance, environment and user
friendliness, safety, etc. it would be necessary to study the concept and operation of e-rickshaw to make it
a safe, affordable , reliable and efficient means of IPT mode for various purposes. It is emerging as a
mode of public transport in the small cities and a feeder service to mass transport system in large cities. It
would, therefore, be necessary to make it a sustainable mode of transport. E-rickshaw service has to be
organised and regulated through policy interventions for integration with public transport so as to play
complementary role in areas with good coverage of PT services and supplementary role in areas with
poor level of PT services.

There is a need to review the role of e-rickshaws in the urban transport system and regulatory framework
available for this mode with an objective to develop an action plan to improve and upgrade electric
rickshaw services in Indian cities. In the absence of any scientific study on the operational and user
perspective point of view of e-rickshaw service it would not be possible to formulate appropriate policies

i
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

and strategies with regard to optimise the service. Hence there is a need for study on e-rickshaws.

Methodology
The methodology of the study incorporates the step-wise procedure in the following 5 stages:

Stage 1: Literature Review


Need & role of electric rickshaw in Indian cities and review of existing e-rickshaw policies and related
issues.

Stage 2: Data Identification


The questionnaires for data collection developed identifying the data needs.

Stage 3: Field studies and Data Collection


In this stage a reconnaissance survey of the 5 cities selected for the study was undertaken. Data as per
questionnaires collected from primary and secondary sources. A sample survey of 250 drivers and 500
users to know their prospection about e-rickshaw service was conducted across 5 selected cities of
Roorkee, Agartala, Amritsar, Kanpur and Delhi.

Consultations were held with the officers from the Regional Transport Office, Municipal Corporations,
Traffic Police in the above 5 cities.

Stage 4: Data Compilation and Analysis


The data collection process is followed by an analysis of the data to assess the role of electric rickshaw in
various cities and the major issues and problems related with the operations and services of e-rickshaw.

Stage 5: Recommendations and Solutions


This stage highlights the suggestions and recommendations for improving and upgrading the operations
and services of electric rickshaw

Derivations from the Case Studies


The electric rickshaw systems of Manila (Philippines), Rajshahi and Sylhet (Bangladesh) have been
reviewed to learn the lessons beneficial in Indian cities. These case studies have shown interesting
features about the operation and services of e-rickshaws. It also highlighted on financing system,
technology type & social impacts of e-rickshaw system which are of immense value in Indian situation.
From the case studies it is derived that e-rickshaw have following advantages and disadvantages:

Advantages
 The economic benefits of e-rickshaws include development of industries & employment generation,
lower vehicular cost, lower maintenance cost, increase in income, affordable etc.

ii
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

 The social benefits of e-rickshaws are lower daily expenses, less physical effort etc.
 The environmental benefits of e-rickshaws relate to low life cycle cost, reduction in air pollution, less
energy consumption etc.
Disadvantages
 The e-rickshaws have a number of issues like less safety due to poor braking, lighting system & poor
driver training,
 Less comfortable in case of crowding.

City Analysis
From the survey of 5 Indian cities namely Agartala, Amritsar, Delhi , Kanpur and Roorkee it is found that
there is hardly any planning for e-rickshaws within the cities. Though there are existing regulatory
authorities related to the e-rickshaws in all the cities like Regional Transport Office (RTO)/ District
Transport Office (DTO), Municipal Corporation/ Council and the Traffic Police still they are not
emphasising on planning and regulation of e-rickshaw services in the cities. It is observed that routes of
these electric rickshaws are not fixed by the RTO or any other Competent Authority. Normally, the routes
are decided by the drivers themselves and so is the fare structure which is fixed by the drivers generally a
flat fare for shared passenegers.

E-rickshaw stands are not provided by the Municipal Corporation. The stands that are visible in the city
are decided by the drivers themselves based on the availability of road space on their routes, resulting in
queuing at critical junctions, roads etc. and thus contributing to congestion on roads.

The survey also reveal that the rented or owned e-rickshaws are almost equal in number and most of the
e-rickshaws travel an average distance between 50-80 kms per day in majority of the cities covered in
study. However in Amritsar where about 35 % of e-rickshaws travel less than 50 kms in a day mainly
because of shorter trip length of 1-2 km. About 90% of e-rickshaws carry more than 50 passenegrs per
day of which 46% of e-rickshaws carry more than 80 passengers per day. In all the cities it is observed
that e-rickshaws mostly carry 4-5 passengers per trip.

The overall number of rented and owned e-rickshaws are same proportion though the figures vary from
city to city. The drivers pay a rent of Rs.250-400 to owners. The maintenance cost of 61% of e-rickshaws
is around Rs.2000-3000 per month including major replacement of battery after about 6 months. In all the
cities 46% of driver earn daily income between Rs.400-600 per day i.e. an average of Rs.15,000 per
month while 39% of drivers earn between Rs.600-800 per day i.e. an average of 21,000 per month. E-
rickshaws generally operate for 8-12 hours a day.

The driver survey indicates that the e-rickshaw system being unorganised sector face a number of

iii
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

problems in terms of social security, benefits to drivers, infrastructure facilities, lack of proper policy
framework, lack of institutional framework etc. Other than Delhi and Agartala there are minimal
initiatives by the authorities and drivers to regularize e-rickshaws system. The e-rickshaw sector faces
issues like lack of clear-cut policy/ regulatory framework for e-rickshaws, no economic stability for
drivers, no usage of modern technology (ITS), lack of financial support and lack of ownership/
institutions for e-rickshaws vehicles. Despite these challenges this mode is widely acceptable by users as
it is cheap, comfortable and convenient.

More or less people in all age groups use e-rickshaw. 72% of users travel an average distance
between 0 and 5 kms daily and spend less than Rs.500 per month for travelling by e-rickshaws. It is also
observed that there are no safety measures for passengers on e-rickshaws like firefighting equipment’s,
GPS etc. Even though e-rickshaw system has certain disadvantage still, the study shows that the e-
rickshaws are very much accepted by the users compared to other modes of transport because it is
cheaper, comfortable, time saving etc.

The e-rickshaws technology needs to be approved by ARAI, ICAT or state agency. In terms of battery
technology the older e-rickshaw are mostly using starter lead acid batteries as they are cheap but less
efficient than deep cycle battery. But newer approved e-rickshaws mostly use deep cycle batteries. The
Lithium-ion battery may become popular in future due to high efficiency and more life cycle. The other
parameters that studied include type of motor, vehicle design, seating capacity, ITS, future R&D etc.

Recommendations
Keeping in view the findings of the study the following points are to be considered for improving the
operation and management of e-rickshaw services in the cities:
(i) Regulatory Framework for e-rickshaw: The study proposes optimum number of e-rickshaws in a
city based on population size and availability of public transport in the city and accordingly the
required infrastructure should be provided. It is also recommended that laws should be strongly
enforced to make the system efficient.
(ii) Increasing Economic Stability of drivers: Since a major proportions of e-rickshaws are rented it is
proposed that rent should be fixed by RTO to minimize exploitation of drivers. It is found that
owned e-rickshaws are more profitable hence different financing schemes are suggested to provide
loans for e-rickshaws. The drivers can also earn additional income by displaying advertisements,
dropping school children and through tourism activities etc.
(iii) Improving Infrastructure Facilities: The infrastructure like parking spaces near intersections,
terminals and charging points etc. should be provided to regularise the operations and make the
system more efficient. Emerging technologies like wireless, solar and turbo charging need to be

iv
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

used in future.
(iv) Social Benefits to the drivers: The special cell or SPV suggested as part of institutional framework
should create awareness about various schemes and help the drivers to avail benefits of different
social welfare schemes like life insurance, pensions, free education for children and medical check-
ups etc.
(v) Improving Vehicle Technology: Existing e-rickshaws need to be retrofitted to make them compliant
with the prescribed specifications given by the concerned state government. From the research it is
found that lithium-ion battery is most efficient but since the technology for developing lithium-ion
battery is costly deep cycle batteries are to be used till the former technology becomes cheaper. It
is suggested to make spare parts indigenously and create awareness among drivers for new
technologies.
(vi) Use of Modern Technology like ITS: It is suggested that GPS, panic button should be provided in
the vehicles and a control room should be setup to monitor the e-rickshaws plying in the city to
ensure safety of passengers and drivers in case of emergency.
(vii) Mechanism for Financing of e-rickshaw vehicles: In view of the EMI at various rate of interest
indicated in chapter 9 and it is suggested that lower rate of interest on loans should be charged.
(viii) Establishing Institution for e-rickshaw: The study suggests formation of a special cell or SPV
which may work on aggregator model. The special cell will help providing customers to e-
rickshaw operators, plan infrastructure for e-rickshaws, propose optimum fares, select and
implement modern technologies, maintain control room and ITS system (e-rickshaw mobile app,
telephone operations and portal) and also assist in providing social benefits etc.
(ix) Fare Fixation Formula: The minimum fare structure for e-rickshaw services is suggested which
can be used for fixing and revising the fare for e-rickshaws in consultation with drivers.

This reveal clearly that e-rickshaw could play a complementary role by providing first and last mile
connectivity to transit system such as metro and city bus system. It could play a supplementary role as a
low cost hired service alongwith public transport system. It could play a basic role in city centre and
congested areas, shopping centres as intra-sector mobility within residential neighbourhood and
commercial centres. It has huge potential to provide convenient, accessible and affordable public
transport services especially to urban poor in cities and enable an inclusive mobility environment.

v
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Chapter 1: Introduction

India is witnessing a rapid urbanization and motorization. During 1971 - 2011, urban population in India
increased at a rate of 3.81%1 per annum whereas motor vehicles increased at a rate of 11.5%2 per annum.
Ministry of Road Transport and Highways (MoRTH), Government of India statistics show that in 2013
the total number of registered vehicles in India were 18.2 crores of which, buses constitute about 1%.
Due to poor supply & service coverage by public transport and feeder services, several forms of IPT like
auto rickshaws, cycle rickshaws and electric rickshaws have entered the market and are providing last
mile connectivity.

Electric rickshaw as an IPT mode is a very recent phenomenon of Urban Mobility and started gaining
popularity since 2011. These are 3 wheeler vehicles, propelled by an electric motor with a capacity
ranging from 650-1400 Watts. The mode is emerging as an alternative to auto rickshaws and hand pulled/
cycle rickshaw because of their low cost as compared to auto rickshaw and less human efforts required
vis-a-vis hand pulled rickshaws. Though the e-rickshaw is new in the Indian transport system, it has been
in Bangladesh, Philippines and in some other Asian cities for quite some time, plying under different
name and style. Besides providing last mile connectivity it is also a source of livelihood to many lower
income group people in the above areas.

With the existing structure, design, power and mechanics the e-rickshaws being plied in some cities in
India could neither be categorized as motorized vehicle under the Motor Vehicle Act, 1988 nor be
considered fully as a non-motorized vehicle and hence could not be regulated. As such the e-rickshaws
were banned temporarily in Delhi in July 2014 by the Delhi High Court due to safety concerns raised
through public interest litigation. The High Court order emphasized the need for regularization of e-
rickshaws in cities and accordingly in March, 2015 the Indian Parliament passed the Motor Vehicles
(Amendment) Act, 2015 to further amend the Motor Vehicles Act, 1988 legalizing e-carts or e-rickshaws
with a vehicle power not exceeding 4,000 watts.

1.1 Need for the Study

In order to understand the existing status of e-rickshaws in Indian cities in terms of design, structure,
capacity, feasibility, legality, acceptance, environment and user friendliness, safety, etc. it would be
necessary to study the concept and operation of e-rickshaw to make it a safe, affordable , reliable and
efficient means of IPT mode for various purposes. It is emerging as a mode of public transport in the
small cities and a feeder service to mass transport system in large cities. It would, therefore, be necessary
to make it a sustainable mode of transport.

1
Census of India 2011 – Part 2 ‘Population Size and Growth Rate’
2
http://www.indiastat.com/table/transport/30/registeredvehicles/16443/6121/data.aspx

1
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

The Ministry of Heavy Industry and Public Enterprises, Government of India launched the National
Electric Mobility Mission Plan 2020 with a view to enhance national energy security, mitigate adverse
environmental impacts (including CO) from road transport vehicles and boost domestic manufacturing
capabilities for electric vehicles (GOI, 2012). The National Urban Transport Policy (NUTP)- 2006 also
emphasised on promoting the use of cleaner technologies and use of electric vehicles to reduce vehicular
pollution.

The recommendations of the Working Group on Urban Transport of the 12th Five Year Plan and the
National Transport Development Policy Committee (NTDPC) Report stressed on the need to improve the
IPT services. Twelfth Plan has specifically emphasized on the need to “improve and upgrade
Intermediate Public Transport vehicles and services” (para 15.5.1). NTDPC Report also states that
Intermediate Public Transport has a potential of providing clean mobility, low emissions, and improved
safety. Manufacturers should be encouraged to invest in improving the technology of these vehicles. The
NTDPC focus is on the use of clean efficient vehicle technology for public modes in order to reduce fuel
consumption and emissions. It recommends subsidies or cheaper parking for IPT to reduce the use of
private vehicles and promote shift to public transport, para transport and non-motorized modes.

In view of the above, the need is to review the role of e-rickshaws in the urban transport system and
regulatory framework available for this mode with an objective to develop an action plan to improve and
upgrade electric rickshaw services in Indian cities. Accordingly, the study has dealt with various issues
and aspects of e-rickshaw by taking up some sample case study towns and suggested areas of
improvement.

1.2 Scope of Work

The Scope of work of the study including assessment of the status of e-rickshaws in Indian cities and
possibilities for improvement is detailed out as under:

I. Methodology of the study


II. Literature Review
III. Existing Situation Analysis
IV. Problems & Issues
V. Suggestions for Improvement
VI. Way Forward

2
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

1.3 Methodology

Step-wise procedure followed in the study is discussed below:

Stage 1: Literature Review


Need & role of electric rickshaw in Indian cities is highlighted based on literature review which helped in
understanding the role, advantages, disadvantages, characteristics, policies, rules and regulations related
to electric rickshaw and the gaps in this regard in Indian cities.

Stage 2: Data Identification


In this stage the questionnaires were used to collect, compile and analyze the existing situation of
electric rickshaw in cities.
a) Data Collection through primary survey covered the following three categories:
i. Government officials like Regional Transport Office/ Authority, Traffic Police and
Commissioners/ Executive Officers of Urban Local Bodies.
ii. Operators/ drivers/ unions
iii. Users
These surveys helped in knowing the existing ground realities in terms of financing pattern of the
system, vehicle technology, operations and maintenance characteristics from the point of view of
operators, government and users. It also helped in incorporating the suggestions for upgradation of the
system.

b) Secondary sources of data included studies done by different authorities, policies and regulations
enforced by various agencies and other urban transport related documents and publications at state and
city levels.

Stage 3: Data Collection & Site Visit


After preparation of questionnaire and identifying the data needs, the five cities for the study were
chosen on the basis of population size (Table 1). Study team visited the sample cities for getting first
hand knowledge and for discussions with the stakeholders to have an understanding of the existing
system and identification of gaps and problems in the sector.

Table 1: List of Cities Selected for the Study

S.No. Name of City Population (2011) Census Classification


1 Roorkee 118,200 Class I Town
2 Agartala 400,004 Class I Town
3 Amritsar 1,132,383 Million Plus City
4 Kanpur 4,572,951 Million Plus City
5 Delhi 16,787,941 Mega City

3
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

For conducting the primary surveys random sampling method has been used with a sample size of 50
operators & 100 users in each city.

Stage 4: Data Compilation and Analysis


The data collection process is followed by an analysis of the data to assess the role of electric rickshaw in
various cities and the major issues and problems related with the operations and services of e-rickshaw. In
this stage SWOT analysis has also been done to identify the financing and institutional options for the
system

Stage 5: Suggestions for Improvement


This stage highlights the suggestions and recommendations for improving and upgrading the operations
and services of electric rickshaw broadly under the following heads:
 Government regulations/policy (norms, rules, subsidies)
 Operation and Maintenance
 Infrastructure requirements
 Improvement of vehicle technology and standards
 Financing options
 Socio-economic benefits to the drivers
 Institutional options

4
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Methodology of the Study:

Need of study
•Role of electric rickshaw in Indian cities
•Need for regulations and improvement of system

Literature Review
•Definitions & Concepts
•Advantages & disadvantages of e-rickshaw
•Characteristics, Policies and rules
•Case studies

Data Identification
•Preparation of questionnaires: User perception, Operators perception, Government perception
•Current financing pattern
•Current vehicle technology
•O & M characteristics

Data Collection from 5 sample cities


•Primary Data : Through Questionnaires Survey & Reconnaisance Survey
•Secondary Data: Government policies, Government rules, Other transport related documents etc.

Compilation & Analysis


•Analysis of presesnt conditions in cities
•Problems & Issues
•Identification of areas for improvement

Recommendations/ Suggestions
•Infrastructure Requirement
•Operation and management of system
•Technology Improvement
•Policies and Regulations (norms, rules, subsidies)
•Socio-econmic stability of operators
•Finacing options
•Institutional options

Figure 1: Methodology of Study

5
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

1.4 Limitations of the Study

Following are the limitations of the study


1. The study is based on observations and conclusions drawn from the discussions held with
government officials like RTOs, Commissioners of Municipal Corporation and Transport
Department, Traffic police, operators and users of e-rickshaws in a few cities.
2. Due to time constraints only a limited number of samples could be taken for the study.

1.5 Structure of the Report

 Chapter 1 Gives a brief about the background of the project, objectives and the scope of study.
 Chapter 2 Deals with concepts of e-rickshaw – its advantages and disadvantages.
 Chapter 3 Includes the case studies dealing with e-rickshaws in different cities of the world.
 Chapter 4 Presents detailed analysis of the 5 cities in India in which the surveys covered various
aspects of e-rickshaws in terms of role, fares, regulations, revenue, drivers and user's perception.
 Chapter 5 Highlights the issues and observations related to the e-rickshaw system.
 Chapter 6 Provides an insight into the existing e-rickshaw vehicle technology like battery type,
dimensions etc.
 Chapter 7 Discusses the different models for financing the e-rickshaws.
 Chapter 8 Elaborates on the different models of institutional framework for e-rickshaws.
 Chapter 9 Summarizes the recommendations for improving e-rickshaw system in the country.
 Chapter 10 Suggests the way forward.

6
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Chapter 2: Electric Rickshaw- Literature Review

2.1 Definition

The Motor Vehicles (Amendment) Act, 2015 amending the Motor Vehicles Act, 1988 defines “e-cart or
e-rickshaw as a special purpose battery powered vehicle of power not exceeding 4,000 watts having three
wheels for carrying goods or passengers, as the case may be, for hire or reward, manufactured,
constructed or adapted, equipped and maintained in accordance with such specifications, as may be
prescribed in this behalf.” (Annexure 1)

The Ministry of Road Transport & Highways vide notification of October 8, 2014 defines “E-rickshaw
means a special purpose battery operated vehicle having three wheels and constructed or adopted to carry
not more than 4 passengers, excluding the driver, and more than 40 Kilograms luggage in total; the net
power of its motor is not more than 2,000 Watt and the maximum speed of the vehicle is not more than
25 kilometer per hour.” (Annexure 2)

2.2 Provisions under Motor Vehicle Act, 1988

At the national level, Ministry of Road Transport and Highways (MoRTH) is responsible for setting
standards for motor vehicles in India under the provisions of the Central Motor Vehicles Act, 1988 and
Central Motor Vehicles Rules, 1989.

Under the provisions of above Act and rules, the transport departments of respective states directly
regulate motor vehicles in the cities. The RTOs in the transport department exercise regulatory powers in
respect of driving licenses, motor vehicle registration, permits and motor vehicle compliance with safety
and emission standards. The Traffic Police is also responsible for framing the rules and regulations
related to the operation of vehicles on roads.

As per the primary survey conducted in the selected cities and discussions held with the stakeholders it is
concluded that e-rickshaw operate on cheaper cost as compared to auto rickshaw. It is also a source of
income for many households in India. Therefore, government has taken up steps to improve its operation
and efficiency through policy interventions such as amendment to Central Motor Vehicles Rules, 1989
for registration and regulationisation of e-rickshaws under the Motor Vehicle Act, 1988 rather than
discarding it altogether.

Accordingly, e-rickshaw must be duly approved as per the provisions of the Motor Vehicles Act, 1988.
Manufacturer of e-rickshaw should comply with standards set and vetted by the competent agencies like

7
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

ARAI, SIAM & ICAT accredited by the Government of India.

2.3 Schemes & Initiatives by the Government

The government of India recognizes the urgency to promote sustainable mobility solutions for reducing
the dependence on imported energy resources and GHG emissions. Accordingly, the government has
decided to shift to the alternative technologies like hybrid and electric vehicles developing green
transport.

2.3.1 National Electric Mobility Mission Plan 2020


As part of the Alternative Fuel for Surface Transportation programme, the Ministry of New and
Renewable Energy (MNRE) promotes research, development and demonstration projects on electric
vehicles. In this context Government of India launched the National Electric Mobility Mission Plan
(NEMMP) in 2013 which aimed at incentivizing electric vehicle production and sales. It is a composite
scheme using different policy levers such as:
(i) Demand side incentives to facilitate acquisition of hybrid/electric vehicles.
(ii) Promoting R&D in technology including battery technology, power electronics, motors, systems
integration, battery management system, testing infrastructure, and ensuring industry participation
in the same.
(iii) Promoting charging infrastructure
(iv) Supply side incentives
(v) Encouraging retro-fitment of on-road vehicles with hybrid kit.

2.3.2 Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) in India, 2015
FAME (Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India) initiative was also
taken up in 2015 which is a part of the National Electric Mobility Mission Plan. The scheme envisages
Rs.795 crore in the first two fiscals from 2015-17. In this scheme the customer can get the incentive in
the form of lower cost of hybrid or electric vehicles at the time of its purchase. Manufacturers can claim
the incentive from the government at the end of each month. Depending on technology, battery operated
scooters and motorcycles will be eligible to demand incentives ranging between Rs.1,800 to Rs.29,000.
Similarly in three-wheelers it is from Rs.3,300 and Rs.61,000. In four-wheelers, the incentives range
from Rs.13,000 to Rs.1.38 lakh, while in light commercial vehicles it is from Rs.17,000 to Rs.1.87 lakh,
and for buses it is from Rs.34 lakh to Rs.66 lakh.

EV market in India is still at a nascent stage. However, technology and battery advancements are making
EVs more attractive to consumers due to increasing convenience and affordability. The positive sign of
such technology is visible in urban transport, particularly in case of two wheelers and three wheelers in

8
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

the form of electric rickshaws in Delhi. The penetration of these vehicles in the market was due to its cost
competitiveness and convenience to the drivers. Three-wheeler manufacturers have already found
solutions to procuring locally produced batteries. These indicate a positive growth and opportunities for
the electric rickshaw sector.

2.4 Advantages & Disadvantages of Electric Rickshaw

E-rickshaw is considered as a good option for commuting though they cannot be tagged as the best. The
advantages and disadvantages of e-rickshaw are given below:

2.4.1 Advantages of Electric Rickshaw


a) Eco-friendly: E-rickshaws are efficient alternative to petrol or diesel run vehicles. As they are
battery operated, these vehicles do not lead to air pollution and are thus environment friendly. The
batteries which will be used for the functioning of these rickshaws can also be effectively recycled
for developing the new batteries.
b) Economical: E-rickshaws have a comparatively lower capital and operation cost than other
motorised IPT modes and thus turn out to be affordable. It is cost effective not only for the
consumers but also for the owners. The battery of the vehicle can be easily recharged from home or
from any place that provides a proper voltage.
c) Noise Pollution free: E-rickshaws are free from creating noise pollution as they emit very less
sound. Passengers can have a smooth and comfortable ride.
d) Livelihood: E-rickshaws provide a means of livelihood for the common as well as illiterate people.
Without investing much of money, the e-rickshaw drivers can earn a good livelihood better than
driving cycle rickshaw.
e) Safety: E-rickshaws involve less risk when compared to the other fuel operating vehicles. As the
vehicle has less speed and light weight, the severity of crash is reduced and hence less probability
of a fatal crash to occur.
f) Easy maintenance: E-rickshaws are free from an engine and a gear box reducing the burden of
maintenance. The motor which is used in these rickshaws is smaller and the battery is placed below
it. Hence, maintaining them is quite easier.

2.4.2 Disadvantages of E-Rickshaw


a) Less Speed: E-rickshaws have slow speed of around 20-25 kmph and are thus not a preferred mode
of transportation during an emergency period and for long distances.
b) Harmful Batteries: As e-rickshaws use batteries which are mostly lead acid batteries which can
cause serious toxic waste problems in case the batteries are not disposed off properly.

9
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

c) No Proper Guidelines: There are no prescribed notified rules and regulations for the operation of
e-rickshaws. Most of the drivers are not fully trained to drive the e-rickshaws, which may result in
unsafe driving practices.

10
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Chapter 3: Case Studies

E-rickshaw operation in some cities has been studied to learn from the best practices prevalent in those
cities.

3.1 Electric Rickshaw in Manila, Philippines

3.1.1 Introduction
Manila, the capital city of the Philippines, has a total population of 1.65 million (2010) making it the
second most populous & dense city in Philippines spread over in an area of 2,498 hectares (2010).

The main public transport systems in the city includes LRTS and MRTS which serve different parts of
Manila. In addition, numerous taxicabs, tricycles (motorcycles with sidecars, the Philippine version of the
auto rickshaw) and "trisikads" or "sikads" (bicycles with a sidecar, the Philippine version of pedicabs)
also operate in the city.

3.1.2 Issues
Most of the tri-cycles used in the city consumes high fuel and are leading to air pollution and health
problems in the city. Presently approximately 3.5 million (2011) conventional combustion engine
tricycles are in the country.

3.1.3 E-rickshaw Project


In 2011, the Department of Energy (DOE)
of the government of Philippines
implemented the “Market Transformation
through Introduction of Energy Efficient
Electric Vehicles Project” i.e. the E-Trike
Project to help ensure energy security
through the promotion of energy efficient
and clean technologies (Figure 2). The
project is expected to insulate stakeholders Figure 2: e-trike in Philippines
from the price volatility of imported petroleum products. It is a US$ 504 million project which consists of
$300 million funds provided by ADB, $105 million by World Bank Clean Technology Fund (CTF) and
$99 million by Government of Philippines. Specifically, the project aims at achieving the following
objectives:
 Deploy 100,000 e-trikes nationwide to replace the same number of traditional gasoline-fed tricycles
 Reduce the transport sector’s annual petroleum consumption by 2.8% (equivalent to 89.2 million

11
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

liters) per year.


 Achieve 79% carbon dioxide (CO2) footprint avoidance

The e-trikes, powered by lithium-ion batteries, are three-wheeled vehicles that look similar to the “tuk-
tuk”, Thailand’s popular auto rickshaw. The ADB kicked off the project in April 2011, with 20 e-trikes in
the city of Mandaluyong. The project duration is for 5 years, with an estimated completion in December
2017.It aims at bringing 1,00,000 electric tricycles on the streets of the Philippines in five years.

The new e-trikes are expected to cost at least $1000 more than conventional trikes (i.e, twice their cost)
which will be recovered through reduced operating costs over a nominal 10-year lifetime. The
government and ADB are expecting a decrease in the current price with the mass production of vehicles.
The e-rickshaws will help the drivers to have higher income due to low operating cost (7 kWh of
electricity or 80 pesos vs 5 liters of gasoline in 250 pesos). Loans are provided under the project with no
down payment which will be repaid from the daily savings. The e-rickshaws will have 5-year warranty
with after sales service, consisting of long-life lithium-ion battery with solar charging options.

3.1.4 Benefits of the project


a) Reduce Air Pollution
The present gasoline-fueled tricycles contribute more than two-thirds of the air pollution generated
by the country’s entire transport sector. The e-trikes are expected to help reduce local air pollution
along with saving energy and the cost associated with it. The e-trikes cost only $1.20 for a daily
charge compared to the $6-8 in fuel a normal tricycle burns every day and can give a saving of about
$4 a day (for 100 km).

b) Develop Industries & create employment


The Philippines government is planning to develop a national e-vehicle industry. The project will
support the establishment of an e-vehicle parts industry, battery supply chain, charging stations,
including five off-grid solar charging stations. The private sector has also come forward & shown
keen interest in building and operating solar charging stations for electric vehicles. However they
need commitment from the government for large-scale deployment of electric vehicles and private
investors will not finance development of a charging network. The project is expected to create local
jobs for drivers, operators and manufacturers.

c) Low Life Cycle Cost


The e-trikes cost approximately US$5,000/unit which is significantly more than traditional tricycles
(approx. US$3,000/unit) but their daily operational (electricity) costs are much less than the gas
costs as such e-trikes will have lower life cycle cost as compared to traditional tricycles.

12
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

d) Better Accessibility
The project will provide better accessibility to all parts of the city. This will improve safety of
passengers and is affordable and more environment friendly (reduce pollution as compared to other
IPT modes). The e-rickshaws can ply in the narrow streets which are not served by the buses.

3.2 Electric Rickshaw Rajshahi, Bangladesh

3.2.1 Introduction
Rajshahi is a major urban and industrial centre in northern
part of Bangladesh. Located on the north bank of the Padma
River near the India-Bangladesh border the city has a
population of 4,48,087 (2011) & has a large number of
rickshaws & auto-rickshaw, public buses & taxi's. (Figure 3)

3.2.2 Issues Figure 3: Electric Rickshaw Rajshahi,


Bangladesh
E-rickshaw were introduced in Bangladesh in 2008 which
gained popularity instantly due to lower travel cost, reasonable safety and comfort level to the users
during travel. This popularity in turn resulted in rapid growth of the mode in urban areas particularly in
small and compact towns in Bangladesh.

3.2.3 Solutions
From the study conducted by Rahim (2013) some of the advantages leading to its growth in cities are as
follows:
a) More Relaxation time
Majority of the drivers agree that with their e-rickshaws they could get more relaxation time. Most of
the drivers think that it is a comfortable job than their previous jobs as the e-rickshaws does not need
high physical efforts like cycle rickshaws and are easy to operate.
b) Increase in Income
The survey of the operators revealed that nearly 40% of the respondents had an increase in their daily
savings and improvement in their economic condition as the maintenance cost of e-rickshaws is
comparatively low (the average maintenance cost of electric rickshaw is Tk.1,000/Rs.860 in every 3 to
6 month) compared to auto rickshaw.

13
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

3.3 Electric Rickshaw Sylhet, Bangladesh

3.3.1 Introduction
Sylhet is a major city that lies on the banks of Surma River in
north-east Bangladesh. The city has a population of about
480,000 people (2011). The main transport systems used in the
city are cycle rickshaws, auto rickshaws (mainly known as
baby-taxis or CNGs), buses, mini-buses and cars.

3.3.2 Issues Figure 4: Electric rickshaws in Sylhet,


Bangladesh
There are about 80,000 (2011) auto rickshaws plying in the city. These auto rickshaws (2 stroke and 4
stroke) create pollution due to the use of conventional fuels like petrol and diesel. In order to reduce the air
pollution in the cities a few years ago some electric rickshaws were imported from China which run on
battery. (Figure 4) Since then, the numbers of battery powered rickshaws are increasing day by day.
Today, there are around 20,000 battery operated easy bikes in Sylhet city.

3.3.3 Benefits of the project


Battery operated Easy Rickshaw have following advantages over auto rickshaw:
a) Less Vehicular Cost: The Battery operated Easy Bike have lower capital cost as compared to an auto
rickshaw. Battery powered easy bike are imported from China. The cost of each vehicle is between1.2-
1.3lacs taka. (Rs.1,03,000-1,12,000).
b) Less Pollution: Easy Bike creates less pollution than CNG auto rickshaw.
c) Less Maintenance Cost: It is seen that the maintenance cost of CNG operated Auto Rickshaw
(Rs.2,500-3,500 per month) is more than Battery operated Easy Bike (Rs.1,500-2,000 per month)
because of higher cost of CNG auto rickshaw spare parts. The electric rickshaw expenses are
comparatively less than CNG auto rickshaw as they use electricity which is cheaper than CNG and
they also operate for less distance proportionately in lesser operation cost.

3.3.4 Limitations of Easy rickshaws


However, there are also disadvantages of the Battery operated Easy Rickshaw over Auto rickshaws. They
are as follows:
1) Poor braking and lighting: Braking system and lighting position are stronger in CNG operated Auto
Rickshaws than Battery operated Easy Bike.
2) Less Safety on Highways and at night: Safety aspect of the system for CNG Auto Rickshaw is more
reliable than Battery operated Easy Bike. It is observed that no indicator light is attached to the back
and front side of the body. This makes the vehicle unsafe for driving on the road without back

14
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

indicator (left/right). There are high chances of occurrence of accident while driving on the
highway or turning left or right.

3.4 Learnings from Case Studies

The above case studies indicate certain advantages and disadvantages of using e-rickshaw which could be
summarised as follows. These are important issues for considerations while planning for the e-rickshaws
in any city.

Table 2: Advantages & Disadvantages of using e-rickshaws

Advantages Disadvantages
Economic
1. Provide boost for development of e-rickshaw 1. Less safe due to poor braking & lighting system &
industry and resultant generation of employment. poor driver training.
2. Lower Vehicular Cost 2. Less comfort if over-crowded
3. Lower Maintenance Cost
4. Increase in Income of drivers/ operators.
5. Affordable
Social
1. Lower daily Expenses
1. More Relaxation time to drivers
Environmental
1. Low Life Cycle Cost
2. Reduce Air Pollution
3. Less energy consumption

From the table 2 it is observed that e-rickshaw are beneficial to the society as they have the potential to
create more employment if developed indigenously, creates less pollution and provides more relaxation
time to drivers. But there is a need for proper braking and lighting system if the system has to operate
safely. Further, regulations have to be framed so that the system does not lead to overcrowding of
passengers causing inconvenience to drivers.

Apart from knowing of the advantages and disadvantages of the system another important learning that
can be useful from the Manila case studies is the financial support from the Government to the drivers as
well as provision of infrastructure for these vehicles. This has been one of the key points for the success
of this project and to enhance environmental sustainability within the city of Manila.

15
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Chapter 4: Existing Situation in Indian Cities

In order to understand the existing situation of the electric rickshaw system in Indian cities, survey of
drivers, users, unions and authority was conducted across 5 cities namely Roorkee, Agartala, Amritsar,
Kanpur and Delhi. The questionnaires that were prepared for the study (Refer Annexure 3) were
discussed with Government officials from Regional Transport Offices, Municipal Commissioner Office
and Traffic Police. Approximately 250 drivers, and 500 users across the selected cities were also
interviewed.

For the purpose of analysis, cities have been grouped into three categories Class I cities, Million Plus
cities and Mega cities based on the city size (Refer Table No.1).

The subsequent section summarizes the feedback and findings from the survey. The detail study of each
city is given in the Annexure 4.

4.1 Availability of Electric Rickshaw in the city

Since 2011 electric rickshaw has become popular in Indian


cities with increasing numbers. In all the 5 cities surveyed as
part of study, the exact number of vehicle is not readily
available. However, the rough estimates as indicated by the
Government officials and Traffic Police in their interviews
are as follows:
 In Delhi more than 10,000 electric rickshaws are plying
of which only 600 are registered (As on 20th September
Figure 5: E-Rickshaws near Metro Station,
2015). Delhi
 In case of Agartala, Amritsar and Roorkee approximately 500-800 electric rickshaws are plying
within the city area.
 In Kanpur more than 1,000 electric rickshaws are plying.

4.2 Role of Electric Rickshaws in cities

In the city of Delhi, the electric rickshaws serve as a feeder to the metro service and to the city bus
service i.e. it serves the purpose of last mile connectivity. In other 4 cities of Kanpur, Agartala, Roorkee
and Amritsar it acts as a substitute to public transport as the cities don’t have adequate public transport
system. In case of Amritsar the electric rickshaws also serves the tourist population to reach important
places such as Golden Temple, Railway Station and Bus Stand. The e-rickshaws are also being used for

16
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

the purpose of movement of freight in some areas and carry excess weight than the prescribed load in the
MoRTH, notification.

4.3 Regulatory Bodies

The existing regulatory authorities in all the above 5 cities are the Regional Transport Office (RTO),
District Transport Office and the Traffic Police.

4.4 Routes

The survey across the cities has revealed that there are no fixed routes for operation of electric rickshaws
in cities. The routes are decided by the drivers themselves based on demand. In case of Delhi, the
operations of e-rickshaws are completely restricted on 236 sections on the arterial and other major roads
in various parts of city by the government. However, in other 4 cities, there are no restrictions and the
drivers are free to operate in all the areas within the city limits.

4.5 Fare Structure

The fares for e-rickshaws have not been notified by the government. Across all the five cities, the drivers
fix the fare on their own which ranges from Rs.5 to Rs.20 as flat rate depending upon the distance
covered. Discussions with the city officials in Kanpur and Agartala have revealed that these two cities
have initiated the process of fare fixation and notification for the same would be issued soon.

4.6 Legislative Support

For the defined category of vehicles the Central Motor Vehicles Act 1988 and the State Motor Vehicle
Rules 1989 are the main supporting laws and guidelines that are followed for regulation of these vehicles.
The e-rickshaws are required to be registered by the RTO. Initially there was a requirement of permits for
e-rickshaws, later on MoRTH on 30th August, 2016 (Annexure 5) notified that e-rickshaws need not to
have permit under Motor Vehicles Act for plying on roads.

17
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

4.7 Vehicle Characteristics

Most of the e-rickshaws that are running in the city have a motor
power of 650- 1,000 watt and battery type of 90-100 Ah. The
maximum running speed is around 15 - 20 km /hr with battery
charging time of 8 hours to 9 hours and replacement period of 6
months. The most common brand of e-rickshaw across cities are
Mayuri, Sarthi, Bharat, Maruti and Vahak. In addition, few locally
made and assembled e-rickshaws also ply within these cities. Figure 6: E-Rickshaws in Agartala
There are no standard specifications for e-rickshaws and it varies
from company to company. However, recently the Government of Delhi has specified some design
standards and identified few agencies for certification of vehicles. The Government has also recognized
33 models of the electric rickshaws and 20 dealers for the sale of vehicles in the market. In other cities no
such initiative has been taken.

4.8 Infrastructure Facilities

At present there is very limited or negligible planning for e-


rickshaws within the cities. E-Rickshaw stands have not
been demarcated by the Municipal Corporation and the
drivers have themselves identified ad-hoc stands which
result in queuing at critical junctions & roads, thus causing
congestion on roads. There are no parking locations
identified at interchange points resulting in inconvenience
to passengers (Figure 7). According to the feedback
Figure 7: e-rickshaw parked along road side
received, though workshops facilities have not been
identified by the government, they have been provided by the manufactures at their showroom itself. In
addition, small private repairing shops are also providing daily repair and maintenance facilities to these
vehicles. The key infrastructure facility like charging points are completely absent across the cities. The
drivers charge the vehicle at their residence or at places of private service providers. These service
providers collect Rs.50-100 per day for one full charge of e-rickshaws. As these connections are not
commercial the respective agencies have to suffer losses. In the absence of parking facilities, the vehicles
are parked in front of the house of the owner/driver at night and a few park at private parking areas. The
daily rent for private parking varies greatly across the cities. In case of Amritsar it is between Rs.20-50
per day and in Delhi it is Rs.100-150 per day.

18
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

4.9 Licensing Procedure

(i) Issue of License


The documents required for issue of permit for e rickshaw as listed by Government of NCT of Delhi
are as follows:
 Application for Contract Carriage permit
 Effective registration certificate
 Effective driving license to drive e-rickshaw
 Effective badge to drive e-rickshaw
 Residence Proof
 Pan / voter ID
 Details of bank account
 Appropriate fee as specified in Delhi Motor Vehicles Rules.
 An undertaking from applicant to the effect that he/ she is not in possession of any Public
Service Vehicle with a permit.
Other cities are yet to specify such requirements. They are at various stages of framing the rules and
guidelines. The city of Amritsar has streamlined the registration process of these vehicles and the
authorities are charging a fee similar to that of an auto rickshaw.

(ii) New Permit and Renewal Fees


In Delhi, the fees for obtaining a new permit from the RTO is Rs.1,510 (as on September, 2015) &
the renewal fee for permit after every 5 years is Rs.1,000. Penalties are charged on the basis of per
day delay in the renewal process (Rs.3 per day). In other cities the process for issuance of permits
was yet to start (as on September, 2015). However, the process of issuance of permits is being
reviewed.

(iii) Time for Processing


In Delhi the average processing time for issuing the permits is less than 15 days.

4.10 Drivers Survey

1. Qualification of Drivers
The drivers survey revealed that 47% of the drivers of e- PRIMARY
27%
rickshaws are illiterate and are not aware of the various SECONDARY
47%

social welfare schemes and facilities provided by the HIGHER


19% SECONDARY
government. They are also facing various problems for GRADUATION
& ABOVE
2% 5%

Figure 8: Qualifications of drivers

19
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

registration of e-rickshaws, especially in Delhi where computerized registration is being done. The
illiteracy rate is very high (86%) in the city of Agartala while in Amritsar it is 25%. Of the literate drivers
of (53%) about half are primary educated and the remaining are secondary educated (Figure 8). Since
most of the drivers are illiterate proper awareness of programmes, schemes and rules meant for them
should be created for effective implementation.

2. Age of Driver

Most of the drivers (51%) are in the age group of 31-


3% 1% 2%
50 years followed by the age group of 19-30 years
accounting for 43% (Figure 9). It can thus be <15
16-18
concluded that majority of the drivers belong to the
43% 19-30
working age group. Only 1% of drivers are below the
51% 31-50
age of 16 years which needs to be discouraged by
>50
prescribing the minimum age limit for driving the e-
rickshaw. Majority of the drivers are from
economically weaker sections of the society, for them Figure 9: Age Groups of Drivers
e-rickshaw is a source of livelihood for their family.

3. Ownership of Vehicles
From the survey it is seen that rented or owned e-
100
rickshaws are almost equal in number (Figure 10), 90
80
but their earning differ due to the rent paid by the
Percentage

70
drivers. Kanpur & Amritsar have the highest rented 60 51 49
50
e-rickshaws at 79% and 67% respectively followed
40
by Roorkee with 59% rented vehicles. On the other 30
20
hand in Agartala, maximum e-rickshaws (90%) are
10
self-owned. Since there are high number of drivers 0
OWNED RENTED
who have rented vehicles provision of loans should
be made to raise their income and also creating to an
ownership feeling by the drivers (Figure 11). Figure 10: Ownership of vehicles

20
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

100 90
79
80 70
67
59
Percentage

60
41 OWNED
40 33 30 RENTED
21
20 10

0
ROORKEE AMRITSAR KANPUR DELHI AGARTALA

Figure 11: E-rickshaw ownership scenario in five cities

4. Average kms operated by e-rickshaws and duration of operations


Most of the e-rickshaws operate for 50-80 kms per day in all the cities except in Amritsar where many e-
rickshaws (35%) operate for less than 50 kms in a day as the maximum trip length is 1-2 km. E-rickshaws
generally operate for 8-12 hours a day.

5. Average passengers per day


On an average 90% of e-rickshaws carry more than 50 44 46
50 passengers per day. About 46% of e-rickshaws 40
carry as many as 80 passengers per day while 44%
Percentage

30
carry between 50-80 passengers per day. Only 10%
20
of e-rickshaws carry between 20-50 passengers per 10
10
day. Among the 5 sample cities it is observed that in
0
Kanpur e-rickshaws carry more than 50 passengers 20-50 50-80 >80
per day and in Agartala more than 80 passengers per No. of Passengers

day reflecting huge demand for e-rickshaws in these Figure 12: Avg. no. of passengers per day
cities (Figure 12 & 13).

100 86
77 74
80

60 52 20-50
Percentage

38 37 50-80
40 3231
23 26
>80
20 9 10
5 0 0
0
ROORKEE AMRITSAR KANPUR DELHI AGARTALA
Figure 13: Average no. of passengers per day in five cities

21
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

6. Passengers per trip


It is observed from the survey that in all cities, e-rickshaws
carry on average 4-5 passengers per trip. In few cases
overloading (Figure 14) of e-rickshaw was observed
especially in areas near the railway station and tourist spots.
It was also observed that though the seating capacity of e-
rickshaws is of 4 passengers but 5 or 6 passengers are often
carried by accommodating passenger along the driver. It can
be dangerous as the e-rickshaw may become unstable due to Figure 14: Overloaded e-rickshaws
light weight and the passenger may fall.

7. Speed of e-rickshaws
From the survey it is reported that 90% of the e-rickshaws have a maximum speed of 20 kms per hour.
Only few e-rickshaws are able to achieve higher speed.

8. Rent Paid by drivers of e-rickshaw


It is observed across the selected sample cities that the rent paid by the drivers to the owners vary
between Rs.250-400 per day depending upon the operator terms, age of vehicle and type of vehicle. For
instance in case of Amritsar the rent for new vehicles is Rs.400 per day as compared to Rs.300 per day
for an old e-rickshaw.

9. Maintenance & Operation cost of e-rickshaws


It is observed that the maintenance cost of more than 60% of e-rickshaws is around Rs.2000-3000 per
month. The high cost is on account of replacement cost of the battery of e-rickshaw after every 6 months
which is in the range of Rs.20,000-25,000. The drivers of the rented vehicle incur maintenance cost of
Rs.1000 per month as they address only the minor repairs. All the major repairing and battery
replacements are done by the owner of the e-rickshaws.

10. Source of Funding in case of owned e-rickshaws 60 56


It is observed that 56% of drivers who owned e- 50
40 36
Percentage

rickshaws have bought the e-rickshaws by borrowing


30
money from private lenders at an interest rate varying
20
from 15-55% per annum. Thus, there is heavy demand 8
10
for loan services among the drivers. 36% of the drivers 0
Private Family Nationalised
have bought e-rickshaws using their family savings and
Lenders Savings Banks
only in Agartala drivers have bought e-rickshaws from
loans provided by the nationalised banks, which Figure 15: Present source of funding for buying
e-rickshaw

22
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

constitute 8% of the total number of owned e-rickshaws (Figure 15).

11. Income per day


It is observed that in all the cities 46% of drivers earned an income between Rs.400-600 per day i.e. an
average of Rs.15,000 per month. 39% of drivers earn between Rs.600-800 per day i.e. an average of
21,000 per month and only 9% of drivers have income less than Rs.400 per day as they operate for less
than 8 hours per day. 6% of drivers earn above Rs.800 per day as they overload the e-rickshaws and work
near important nodes such as railway station, bus stand, important tourist spots, etc. (Figure 16)

50 46
45
39
40
35
30
Percentage

25
20
15
9
10
6
5
0
200-400 400-600 600-800 >800
Rupees

Figure 16: Income per day

From the Table 3 it is observed that due to high payment of rent by drivers they are not able to generate
enough net income when compared with the self-owned vehicle operator.

Table 3: Income of Drivers per month


Descriptions Earning per Rent paid Total earning
day (Rs.) per day /month (Rs.)
Income in case of owned e- rickshaws on less-profitable routes 200-400 - 6000-12,000
Income in case of owned e- rickshaws on average profitable routes 400-600 - 12,000-18,000
Income in case of rented e- rickshaws on average profitable routes 400-600 300 3,000-9,000
Income in case of owned e- rickshaws on profitable routes like bus 600-800 - 18,000-24,000
stands, railway stations, market areas
Income in case of rented e- rickshaws on profitable routes like bus 600-800 300 9000-15,000
stands, railway stations, market areas

Table 4 shows that the net income of the driver varies from Rs.5,200 to Rs.17,700. This huge variation is
due to the high amount of rent paid by the drivers to the owners of e-rickshaws. The income level of

23
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

drivers goes down significantly if the routes have low profit due to high maintenance cost of vehicle. If
the drivers are able to get more than 50 passengers per day they can earn minimum wage of Rs.11,700
per month as specified by the government. As observed from the table, on high profitable routes like bus
stands, railway stations etc. drivers are able to earn more than Rs.17,000 per month resulting in more
number of operators on the same routes. However in case of rented e-rickshaws drivers earn even less
than the minimum wage specified by government even on profitable routes.

Table 4: Savings per month


Descriptions Average Average Average other Net
earnings maintenance expenses per Savings
per month cost per month month* per month
Income in case of owned e- rickshaws on less- 9,000 3,000 300 5,700
profitable routes
Income in case of owned e- rickshaws on 15,000 3,000 300 11,700
average profitable routes
Income in case of rented e- rickshaws on 6,000 500 300 5,200
average profitable routes
Income in case of owned e- rickshaws on 21,000 3,000 300 17,700
profitable routes like bus stands, railway
stations, market areas
Income in case of rented e- rickshaws on 12,000 500 300 11,200
profitable routes like bus stands, railway
stations, market areas
*except Agartala where no penalties and other charges exist

12. Other Penalties


About 92% of drivers in Amritsar and Kanpur reported that in the absence of clear regulations they have
to pay unofficial service charges to the officials. In Kanpur such charges paid by the operators is Rs.10 at
junctions while in Amritsar it is as much as Rs.50 per day per rickshaw for parking near important tourist
spots like Jallianwala Bagh and Golden temple.

It is observed that in most cities there are no specified legal penalties for violations by the vehicles yet the
traffic police challans the e-rickshaws illegally. For instance in Kanpur vehicles are challaned Rs.200-300
in no parking zones etc. In Roorkee e-rickshaw are banned for some time in the city and if found plying
on road, a one-time penalty of Rs.12,000 is charged. In Delhi e-rickshaws are banned on many major
roads, if found plying on these roads, a fine of Rs.2,000 is imposed. Only in case of Agartala no cases of
illegal gratification and penalties reported.

13. Unions of e-rickshaw


It is observed that bigger cities like Amritsar and Kanpur don’t have e-rickshaw unions but smaller cities
like Agartala have registered an e-rickshaw union (CITU). This union is found to be beneficial to the

24
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

drivers as it helps in solving disputes among drivers or any other problems relating to operation of service
or drivers. Roorkee has an informal union which is beneficial to the drivers to some extent like arranging
parking areas and solving disputes among drivers. Delhi also has a registered union at Shahdara however,
drivers are not aware of its existence.

14. Facilities for e-rickshaws


None of the cities surveyed had designated infrastructure for e-rickshaws nor the drivers were provided
with social benefits.

15. Safety & Security


E-rickshaw drivers & owners face security issues. It is observed that vehicles are often stolen at night due
to lack of proper night parking facilities.

16. E-rickshaw Selection Criteria


Survey revealed that the drivers consider motor type as the most important factor for selecting a
particular e-rickshaw. Seating capacity and cost of vehicle having 13% preference each is given next
priority. Other considerations include size of e-rickshaw (9%), speed of vehicle (11%), battery charging
time (10%) etc. Many drivers are unaware of such criteria. (Figure 17)

25%
21%
20% 17%

15% 13% 13%


11%
9% 10%
10%
6%
5%

0%
SIZE SPEED ENGINE TYPE SEATING BATTERY COST BRAND OTHERS/ NO
CAPACITY CHARGING SPECIFIC
TIME

Figure 17: Preferences of driver for selecting e-rickshaws

4.11 Drivers Views and Suggestions

1) Vehicle Registration: All the cities should register the e-rickshaws to safeguard the interest of
drivers and users. Registration of vehicles will help the drivers to identify their vehicles, increasing
the safety of vehicle incase of theft as well as helping them to claim insurances if any crash or theft
occurs.
2) Insurance of drivers and vehicles: Insurance provision should be provided for all the vehicle as
this will safeguard the poor drivers from the heavy cost of repairing of e-rickshaw in case of

25
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

accidents.
3) Quality of e-rickshaws: The companies manufacturing the e-rickshaws should be regulated by the
government. Only the agencies providing good quality engines, frame should be allowed.
4) Battery Life: Only batteries providing battery life of more than 6 months should be used inside the
vehicles.
5) Registration of Old Rickshaws: The battery rickshaws earlier than the amendment of Motor
Vehicle Act and not registered so far should be given timeframe of 2 years for replacement of old e-
rickshaw with the new one so that they can be registered. The old rickshaws which can’t be
registered should be replaced by the new rickshaws by providing subsidies in place of old rickshaws
whose spare parts can be sold out.
6) Training of drivers: Most of the drivers are of the view that they know driving and traffic rules. But
they want awareness on laws about e-rickshaws.
7) Use of modern technology: About 32% of drivers wanted to incorporate modern technologies like
fire-fighting equipment’s, GPS inside the vehicle for ensuring safety of vehicles, drivers and
passengers.
8) Infrastructure provisions: Provision of e rickshaw stand, parking zones would improve their
operations. Provision of e-rickshaw stands at appropriate locations help both drivers and passengers
equally. Halt and stop facilities can help waiting passengers at critical locations.
9) Loans for e-rickshaws: As mentioned earlier e- rickshaw drivers take loans for buying the e-
rickshaw, especially those from a poor background or the drivers have to shelve out money for
paying rent to owners which affect their earnings. Hence 67% of drivers suggested that the legal
financing procedure of e-rickshaws should be made easier. It would be better if government initiates
a beneficiary scheme in this regard or gives subsidies that would make the rickshaw purchasing
affordable at lower rates of interest by banks. (Figure 18)

100 94 94
90
80
66 66 64
70 60
Percentage

60
50 38
40 32
30 20 16
20
10
0
Infrastructure Loans/ Insurance/ Training for License Registration Registration Allow Use of Others
(Parking, Subsidies Pensions drivers of Vehicles for old rickshaws in modern
charging vehicles all part of equipments
point) cities
Suggestions

Figure 18: Suggestions for improvement

26
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

4.12 Users Survey

4.12.1 Age Group of Users 3%


It is seen that people of all age groups use e- 7% <15
16-25
rickshaw. However, commuters in the age group of 26- 30%
29% 26-39
39 years are the predominant users (31%) followed by 40-60
age group of 16-25 years (30%). There is a very little >60

percentage of old people above 60 years of age (7%) 31%

who use the e-rickshaw. (Figure 19)


Figure 19: Age group users

4.12.2 Trip Purpose


6% WORK
The system is mostly used in cities for work, social and
EDUCATION
educational purpose. More than 44% of the trips are for 29% 44%
SOCIAL/
work, followed by 29% social trips, 21% educational trips RECREATIONAL
OTHERS
and the rest 6% other trips. However, in case of Amritsar
21%
which being a religious area has higher social/recreational
trips (60%) as compared to work trips. (Figure 20) Figure 20: Trip Purpose

80 72.8
4.12.3 Average Trip Length of Passengers
Percentage

60
It is observed that the 72% of users have trip length
40 25.95
between 0 and 5 kms and 26% have a trip length of 5-10
20
1.25 0
kms. Only 1% of users in the city of Roorkee travel for 0
11-15 kms by e-rickshaw as some live in nearby villages 0-5 5-10.0 11-15.0 >15
Distance
and change their mode more than twice. (Figure 21)
Figure 21: Average Distance Travelled by
Passengers
4.12.4 Monthly Expenditure on E-Rickshaw
The average monthly expenditure by users on e-rickshaws is below Rs.500. About 44% of the users
spend less than Rs.200 per month and another 42% spend between Rs.200-500 per month. In Agartala
95% of E-rickshaw users spend between Rs.200-500 per month whereas in Amritsar 90% users spend
less than Rs.200 per month as most of the users are tourists. (Figure 22)

27
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

100

80
Percentage

60 <200
200-500
40
>500
20

0
Kanpur agartala Delhi Roorkee Amritsar

Figure 22: Expenditure/month incurred on e-rickshaw

4.12.5 Safety of the Passengers


It is observed that there are no safety measures for passengers on e-rickshaws like fire-fighting
equipment, first aid kit or GPS although in case of Delhi the government has made it compulsory for e-
rickshaws to have first aid kit and firefighting equipment, which will help in case of any accident.

4.12.6 Driver’s Behaviour


8%
From the users perception survey it is observed that 72% of 20%
GOOD
passengers found the drivers behavior to be fair while 20%
FAIR
feel it good. 8% of people felt the driver’s behavior to be
BAD
inappropriate specially during night times when drivers 72%
overcharge or unfair charging when the number of
passengers carried are few. (Figure 23) Figure 23: Driver's Behaviour

4.12.7 Reasons for Using E-Rickshaws


It is found from the survey that 76% of users preferred to travel by e-rickshaw mainly because of its
availability during most of the time of the day, easy to find on certain locations and easy availability in
the city. 61% of users find e-rickshaws to be more comfortable than cycle rickshaw and auto rickshaw
thus preferring them. Low, fixed fare structure and higher speed than cycle rickshaws is also a factor for
high acceptance level of e-rickshaws. In tourist place like Amritsar, e-rickshaws are preferred due to
more number of seating capacity than cycle rickshaw, thus enabling them to travel with their family and
in groups. (Figure 24)

28
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

80 76

70
61
60
Percentage

50
42
40
32
30

20

10 6

0
ACCESSIBILITY COMFORTABLE LOW FARE TIME SAVING (HIGH TRAVEL IN GROUP
SPEED)

Figure 24: Reasons for using e-rickshaws by users

4.12.8 Suggestions by Users for the Improvement of E-Rickshaws


Users suggested many areas of improvements for the betterment of e-rickshaw service. 34% of the users
wanted e-rickshaw service to be operational throughout the city as they are clean, comfortable and
provides employment to people. Improvement in safety features for children and enhanced stability of e-
rickshaws while moving are given preference. Other major factors include no overloading of e-rickshaws
and providing training to drivers with age limit to improve safety of users. Increase in size of e-rickshaw
for more comfort, more capacity, better design of vehicles, services available during late hours of day and
provision for luggage facility are some of the other suggestions. (Figure 25)

40

35 34
30
Percentage (responses)

30 27 26
25
19
20 17
16
15 13 12
9 8
10
4
5

Figure 25: Users Suggestions

29
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

4.13 Comparative Analysis

Citywise comparative analysis shows the perception and suggestions of drivers and users on the
improvement of various components of operation of e-rickshaws. Figures indicate the opinion of the
percentage of people surveyed for the purpose.

Table 5: Driver’s Suggestions


Roorkee Amritsar Kanpur Delhi Agartala
(%) (%) (%) (%) (%)
Infrastructure (Parking, charging point) 36 63 74 58 100
Loans/ Subsidies 50 67 64 60 90
Insurance/ Pensions 50 50 67 53 78
Training for drivers 27 13 15 28 78
License 100 71 100 100 100
Registration of Vehicles 100 71 100 100 100
Registration for old vehicles 82 21 97 21 98
Allow rickshaws in all part of cities 0 0 0 15 100
Use of modern equipment’s 32 5 2 3 38
Fare fixation 0 4 0 2 0
Route fixation 0 4 0 2 0
Illegal Penalties 0 92 100 0 0

From the above table it would be seen that almost all the drivers in all the 5 cities wanted that their
vehicles should be registered and driving license should be issued to them. In Agartala all the drivers
were of the view that they should be allowed to operate in all parts of the city. Similar concern was raised
by some of the drivers in Delhi. Drivers in all the cities wanted dedicated infrastructure such as parking,
charging points and social benefits like insurance, pensions etc. Most of the rented rickshaw drivers
wanted loan facilities to be provided by government. It is also observed that charging of illegal penalties
is a major problem in Amritsar and Kanpur.
Table 6: Users Suggestion
Roorkee Amritsar Kanpur Delhi Agartala
(%) (%) (%) (%) (%)
Safety 0 30 80 13 26
Improved Size 6 27 6 5 19
Stability of e-rickshaw 25 45 2 3 19
Capacity 6 34 2 2 16
Better Frame 13 32 8 6 19
Better Design 6 30 2 2 7
Stop Overloading 13 40 66 10 6
Training for Driver 0 20 42 13 57
Age Limit 32 10 0 0 0
Service after 9 p.m. 25 0 40 2 21
Permission for e-rickshaw to ply on all roads 25 0 58 14 71
Luggage Facility 19 0 0 0 0

30
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

From the table 6 it is observed that safety, training of driver for better ride experience and no overloading
of e-rickshaws are of major concerns to passengers. Passengers in almost all the cities wanted the
operation of e-rickshaw should not be restricted on certain roads.

Table 7: Comparative Analysis of drivers and users perception


Aspect Driver Users
Use of modern equipment’s for safety of
Safety Safety
passengers
Vehicle Financing Loans/ Subsidies N/A
Social Benefits to drivers Insurance/ Pensions N/A
Size of Vehicle - Improved Size
Overloading - Stop overloading
Vehicle Design Better frame Better frame
- Better design
- Stability
- Luggage facility
Driver Training Training for drivers Training for driver
License Age limit
Vehicle regulations Permission to ply on all roads Permission to ply on all roads
Fare fixation -
Route fixation -
Infrastructure Infrastructure (Parking, charging point) Service after 9 pm be available

It is observed from the table that both the stakeholders (drivers and users) gave priority to safety features
inside the vehicle such as firefighting equipment, GPS etc., training for drivers for better riding
experience and fixing age limit for driving license. Both the stakeholders wanted proper regulatory
framework so that the e-rickshaws can ply on the specified roads with government permission.

4.14 Conclusion

The conclusions of the survey clearly show that the e-rickshaws are very much accepted by the users. The
user’s survey has revealed that this mode is opted over other modes because it is cheaper, comfortable
and provides considerable time saving etc. Except Delhi and Agartala in other cities there is not much
initiatives by the authorities to regularize this user friendly mode of transport.

31
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Chapter 5: Major Issues

The growth of e-rickshaws is not only limited to small and medium cities but also in many mega cities of
India. They play an important role in providing mobility at low cost to a large section of the society. In
small and medium cities they are acting as the public transport system whereas in mega cities they act as
a feeder service to the public transport. However, as revealed by the survey analysis discussed in the
preceding section of the report, there are numerous issues related to the operation of e-rickshaws in cities.
The major issues identified could be clubbed under the following broad categories:
1) Absence of Regulatory Framework for electric rickshaws
2) No Economic Stability for drivers
3) Lack of Infrastructure Facilities
4) Lack of Social Benefits for the drivers
5) Lack of usage of modern technology
6) Lack of Financial Support
7) Lack of Ownership/Institution of the e-rickshaws

5.1 Absence of Regulatory Framework for Electric rickshaw

(i) Acts and Rules


The existing Acts and rules pertaining to motor vehicles at the central and state level (i.e. Motor Vehicles
Act 1988, Motor Vehicles Rules 1989, and various state rules) have recently been amended to incorporate
e-rickshaw as a mode. This has led to change in the various State Rules. Though all cities have
recognised the recent modification in the Motor Vehicles Act 1988, they are yet to include electric
rickshaw as a mode of transport in cities in the respective Act or rules. Only Delhi has adopted the
amendment and incorporated the changes in its Motor Vehicle Rules. However, the Acts and rules in the
states, as in case of Delhi, do not address the following issues:
 The method for fixing the routes and fares (except the use of fare meters) for stage and contract
carriages,
 Use of modern technologies to improve performance of e-rickshaw vehicles,
 Methods of innovative financing of vehicles,
 The improvement of socio-economic conditions of commercial drivers except the specification of
working hours if fixed by the state government (as per the MV Act 1988 and States Act/ Rules)
 The institutions and its role for enforcement of various rules and regulations related to motor
vehicles other than identifying the RTO/DTO as the registering authority.

In Agartala, prior to the Amendment of the MV Act in 2015, registration was taking place under the

32
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Municipal Corporation Act. Recently with the change in MV Rules it has started the amendment process
of “Tripura Vehicles Rule, 1991” and included “E-rickshaw/E-cart” as one of the mode in line with MV
Act 1988, with responsibility now shifting to the RTO. Amritsar is considering including e-rickshaw in
IPT category to start the registration process. No other cities have adopted any such methods of licensing,
registration or issuance of permits so far.

Government initiatives like FAME India 2015 and National Electric Mobility Mission Plan 2020 only
emphasizes on three wheelers auto rickshaws and nothing specific about electric rickshaws is mentioned
in these government schemes.

(ii) Permits
The permit system in India is regulated by the RTO for which details are being worked out. In Delhi
documents required for issuance of permits have been specified by RTO, but the process is yet to pick up.
The government has still not decided whether it would be an open permit system i.e. there is no cap on
the number of permits issued or a closed permit system.

(iii) Fare Fixation


Currently the fares for e-rickshaw are fixed by the drivers. To streamline the process, Kanpur and
Agartala are in the process of fare fixation and regulation. However, a standardized analytical framework
for fare determination, implementation and revision needs to be developed to ensure that the drivers
adopt the proposed fare structure and avoid overcharging and conflicts between drivers, union’s,
commuters and authorities.

(iv) Routes
In every city, routes are fixed by the unions. However, there is a lack of proper route rationalization
leading to greater competition between drivers leading to rash driving practices and inappropriate
distribution of services in the city. In case of Delhi, the operation of e-rickshaws are banned on the
arterial roads by the government but there are no such restrictions in other cities.

(v) Lack of Enforcement


In the absence of adequate parking infrastructure across cities the vehicles are parked wherever they find
space on road commonly near the junctions, causing traffic jam and congestion on roads. In case of
Delhi, e-rickshaws are normally parked around metro station causing chaos on the stretch near metro
station. In Kanpur, Rs.10 per e-rickshaw is taken by traffic police to let it stand near the junction.

33
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

5.2 No Economic Stability for Drivers

The e-rickshaw sector is un-organized and the services are provided by individual drivers (who may be
owner or rented rickshaw drivers). The survey of 5 cities has indicated that most of the drivers are
financially weak and rely on e-rickshaw for daily bread and butter. Analysis of ownership status shows
that there is a mix of owned and rented vehicles in cities. In Delhi and Agartala self-owned vehicles are
higher in number as compared to other 3 cities. In cities where the vehicles are rented, the cost of rents is
high, resulting in overcharging by drivers and poor quality of services to commuters. The net income
earned by the operators in case of rented vehicles is very low and in some cases it is even lower than the
minimum wages specified by various State Labour Departments, except in Roorkee and Agartala (Class 1
cities), where these electric rickshaws serve as a major public transport mode. Other than fare box
revenue, advertisements, ferrying school children, carriage of goods, participating in rallies etc. are some
of the other methods through which drivers earn extra income. The key areas of expenditure other than
monthly rental are:
(i) The monthly maintenance cost of Rs.2,500 - Rs.3,500 or above for owners of vehicles and Rs.500 for
rental drivers.
(ii) Charging cost in case of owned rickshaw drivers,
(iii) Parking fees in few cases,
(iv) Charges of regulatory agencies that are borne by the drivers.

5.3 Lack of Infrastructure Facilities


This sector is not formally recognized by the government and therefore often lacks in basic
infrastructures facilities and work environment for the drivers.

5.3.1 Lack of Adequate Rickshaw Stand


Across cities no e-rickshaw stands have been provided. Therefore these vehicles queue and stop at any
locations on the road leading to more congestion, and confusion especially near the junctions. In Delhi,
they are parked generally at the metro station, causing maneuvering problems for other vehicles.

5.3.2 No Interchange Points


The e-rickshaw facilities are to be integrated with other modes in
the city. And since, no earmarked stands have been provided in
cities, drivers stops at any point, junction and locations on the
roads in search of passengers which cause congestion. (Figure 26)

Figure 26: e-rickshaws stopping on


middle of roads to board passengers

34
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

5.3.3 No Parking Areas


Specific parking areas have not been identified in the cities for e-rickshaws. Therefore the drivers often
take their vehicles home and park them on the roadsides without any security.

5.3.4 No Access to Restrooms, Drinking Water Facilities


E-rickshaws drivers also face the problems of the lack of restrooms, shelters, toilet facilities, or even
access to drinking water. This often causes health problems, deep fatigue and poor driving habits among
drivers.

5.3.5 No Access to Repair Workshop


Since this sector is yet to be recognized by the government, till now organised workshops have not been
developed for the vehicles. Even for a small technical problem the drivers are forced to take the vehicles
to private repair/workshop shops, thereby incurring higher maintenance cost. Also the local shops do not
have required technical expertise to maintain these vehicles which leads to greater breakdown of vehicles.

5.3.6 Lack of Charging Station


No provision for charging of vehicles is provided by the city government. As a result often drivers charge
their vehicle at their residence or owner’s place. This lead to revenue loss for electricity department. As
these are commercial vehicle, the tariff for charging should be fixed at commercial rates.

5.4 Lack of Social Benefits for the Drivers

The social status and living conditions of the electric rickshaw drivers are precarious and this has an
adverse impact on drivers’ behavior and driving practices.

5.4.1 No Social Benefits


As has been discussed in the earlier section, this sector is unorganized in most of the cities and the drivers
work independently. It is very rare that they get any social benefits from the unions, or from NGOs. They
are also not provided help from the government in the form of training, insurance, medical facilities,
pension, education, etc. The only case where the government is providing subsidies is to help people
belonging to scheduled castes to purchase vehicles under the Green Business Scheme launched in
2015.Also in case of Delhi Rs.15,000 is provided as subsidy to buy the vehicles. Due to poor education
levels, the drivers are unaware of various government schemes such as Green Business Scheme, Atal
Pension Yojana, Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Suraksha Bima Yojana etc. to avail of
benefits from there schemes.

5.4.2 Long Working Hours


To earn their daily wages and to cover the operation expenses the drivers have to work for more than

35
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

twelve hours a day resulting in continuous exposure to pollution on roads and poor health conditions.
This also leads to weakness, tiredness and unsafe trips.

5.4.3 Penalties by the Traffic Police


The Traffic Police often charges penalty for non-registration of vehicles, violation of traffic rules,
overloading etc. without specific provision under the prescribed rules. This leads to violation of laws and
loss of valuable revenue earning by the government.

5.4.4 Role of the Unions/NGOs


There are no Unions in existence in cities except in Delhi and Agartala. Though these unions are
registered they do not look into the welfare of the drivers like providing training, financing or medical
checkups etc. This union just looks into the smooth functioning of operations. In Delhi the drivers are
even unaware of the existence of these unions. Other cities do not have any union which looks after the
interests of the drivers.

5.5 Lack of Usage of Modern Technology

Electric rickshaws unlike cabs and private vehicles generally don't use modern technologies, as a result
they face several problems like:

5.5.1 Outdated Technology to Meet the Latest Standards


Majority of e-rickshaws currently operating in the cities do not comply with the specifications stipulated
by the concerned agencies of the government. Therefore, most of the old vehicles need to be retrofitted to
meet the current specifications and standards. The government needs to issue notification to all the
manufacturers and dealers to deliver new vehicles as per the standards.

5.5.2 Unequal Distribution of the Vehicles


Electric rickshaws are usually concentrated in one place where the
probability of getting passengers is the highest, whereas some areas
are not covered at all. Lack of proper fleet management leads to
high waiting time for the passengers in non-covered areas and more
competition among the drivers in high demand areas. (Figure 27)
Figure 27: Passengers waiting for
5.5.3 Lack of Security for Passengers other passengers

Electric rickshaws are not considered safe as the structure of the vehicle is unstable due to its light
weight. There is difficulty in tracking the vehicle in the absence of number plate and non-installation of
GPS. There is thus a sense of lack of safety at high speeds and security for passengers, especially the

36
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

females and elderly persons particularly using at night time.

5.5.4 Overcharging by Drivers


Few users have also complained about the overcharging of fares by drivers. Commuters therefore end up
paying more than the actually fixed fares. This was generally found in the tourist city of Amritsar.

5.6 Lack of Financial Support

One of the main issues highlighted in the drivers survey in all 5 cities is the lack of financial support to
the drivers to purchase the vehicles. The following are the main reasons:
1) Stringent conditions to get loans from nationalized banks.
2) Recourse to private money lender
3) Recourse to family members

5.6.1 Stringent Conditions to get loans from Nationalized Banks


Most of the drivers prefer to take the vehicles on rent from their owners (except Delhi and Agartala) as
they are financially weak and the process of getting loans is not favourable. From the survey, it is
observed that the nationalized banks are sanctioning loans only in Agartala at 12% - 13% interest per
annum for two years period. In case of Delhi, the Delhi Finance Corporation though has agreed to
provide loans for retro fitment of vehicles at 13% per annum interest for a period of two years provided
they arrange for the following documents to meet the conditions.
(i) Persons have to have a minimum income of Rs.17,000 per month
(ii) Identity proof
(iii) 3 guarantors

Considering the poor financial conditions of the drivers, they are unable to provide all the documents and
hence the drivers do not prefer to take loan from the nationalised banks. In case of other cities like
Roorkee, Amritsar and Kanpur since the sector is yet to be regularised by the local government, no such
loans are given by the nationalised banks.

5.6.2 Recourse to Private Money Lenders


In the absence of easy access to loans from nationalized banks, many vehicle owners resort to private
money lenders for loans. These money lenders charge an interest rate of 2-6% per month and their
requirements in terms of documents is much less and offer faster loans.

5.6.3 Recourse to Family Members


Another unique feature revealed from the survey is that mostly the vehicle owners borrow more from
their family members to buy the vehicle.

37
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

5.7 Lack of Ownership / Institution for the Electric Rickshaws

The Central Motor Vehicles Act does not recognize the institution responsible for regulating the
operation and functioning of these vehicles. Other than the RTO issuing registration for the vehicles and
traffic police looking after the regulations of traffic on the roads, this sector is considered to be
unorganized and completely privately owned. Therefore, no action has been taken by the government in
organizing the system like improving the fleet, financing the vehicles, improving the drivers working and
social conditions.

5.8 Conclusion

In conclusion, it can be said that the electric rickshaws play an important role as IPT mode in many cities
across India, but it is unorganized mode facing many challenges. In order to upgrade the service there is a
need for improvement in the sector, before it becomes too late and its importance is lost.

38
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Chapter 6: E-Rickshaw Vehicle Technology

6.1 Growth of Electric Vehicles in India

City commuters are increasingly using electric rickshaws since 2011 as an important mode for daily trips.
These vehicles are playing an important role in filling the gap of public transport or acting as feeders to
the public transport system.

The current market for Electric Vehicles (EV) is very small in India. Though there are different types of
Electric 2 Wheeler (scooters and bikes), Electric 4-Wheelers (electric cars), and electric buses, the overall
share of EVs in the total vehicle population is negligible. In the 1990s, a couple of Indian firms
introduced electric two- and three-wheelers in the market, but these were unsuccessful and discontinued
later. The very first attempt of designing electric rickshaws was done by Nimbkar Agricultural Research
Institute (NARI), Maharashtra in the late 1990s. They modified the cycle rickshaw and converted it into
an electric one. The following models of e-rickshaws are plying in various cities:

Model 1 - Motor Assisted Pedal Rickshaw (MAPRA)


This was the first motor cycle rickshaw developed in India,
driven by small battery and motor (0.375 kW PMDC motor
with 24 V and 40 A-hr lead acid batteries) attached to a
body of 3 speed gear cycle rickshaw. It could carry a load
of two passengers and attain a speed of 10-15 km/hr speed.
The cost of this rickshaw was approximately Rs.21,000/- in
mass production. The price includes rickshaw, PMDC Figure 28: NARI Motor Assisted Pedal
motor, battery and battery charger. Figure 28 shows the Rickshaw (MAPRA)

model of this e-rickshaw.


Model 2 – ELECSHA
This model was further developed by NARI as an
improvement of MAPRA. Further, advancement was done in
terms of better speed (i.e. 25-30 km/hr) and higher kilometer
run (i.e. 60-80 km/charge) with broad objective to substituting
auto-rickshaws and providing non-polluting vehicle option in
major cities in India. This has been patented and registered as
ELECSHA (Figure 29). It runs on 36 V, 100 A-hr lead acid
batteries with power of a 1.3 kW PMDC motor. It is estimated
Figure 29: ELECSHA

39
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

to cost about Rs.1,00,000/- in mass production.

More recently, electric rickshaws are gaining popularity as a good substitute for conventional three-
wheelers (rickshaws) and paddle-rickshaws. Its number has crossed more than 1.5 lakh pan India level.
In Delhi alone there are more than 10,000 e-rickshaws. However these vehicles have serious flaws in
terms of design and safety aspects.

The foregoing section discusses the existing Government Policy, electric rickshaw vehicles technology,
safety standards and the related issues.

EV market in India is still at a nascent stage. However, technology and battery advancements are making
EVs more attractive to commuters mainly because of convenience and affordability. The positive sign of
such technology is visible in urban transport, particularly in case of two wheelers and three wheelers in
the form of electric rickshaws in Delhi. The penetration of these vehicles in the market was due to its cost
competitiveness and convenience to the drivers. Three-wheeler manufacturers have already found
solutions to procuring locally produced batteries. These indicate a positive growth and opportunities for
the electric rickshaw sector.

6.2 Vehicle Design

According to the Motor Vehicles Act, 1988; the vehicle design and standards should conform to the
following:
 Approved by competent agencies like ARAI, SIAM & ICAT recognized by the Government of India.
 The overall electric rickshaw design shall meet all the requirements of safety of the vehicle, safety of
passengers and luggage and the driver.
 The e- rickshaw should not be noisy, not have any electric shock for the passengers as well as the
driver.
 It should have proper control and instrument panel to indicate the speed, charging status of the battery
(or the remaining charge or kilometres it can run), etc.
 It should have sufficient braking system, suspension system, start and stop buttons, key, front and
back lights with parking lights too, power supply system for these auxiliaries, and proper covered
battery compartment not to cause any problem to the passengers etc.
 The e-rickshaw has to be fabricated with good quality steel properly plated/painted to avoid rusting for
more than five years.
 The body shall be of good quality metal, and the roof shall be of fiber glass or a combination of fiber
glass and metal of good quality.

40
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

 The seats have to be of very good quality with proper cushioning provided.
 There should be sufficient number of handles/grab bars to ease passenger entry and ride.
 It shall have sufficient height and should be giving proper protection to the passengers from the direct
sun light and rain.

For the study purpose, technology involved in e-rickshaw is divided into four heads i.e. Body, Motor,
Battery, and Efficiency. Design specifications for four-seater e-rickshaw conforming to the Ministry of
Road Transport and Highway (MoRTH) standards is mentioned below:

1) Body: The elaborated design specifications for e-rickshaw according to State Urban Development
Agency (SUDA), Uttar Pradesh bidding document is given below in Table 8:

Table 8: Overall Design Specifications according to SUDA, UP

S.no. Description Specifications Remarks/Reference


Standards/Test Standards
1 Type of Electric Rickshaw fully electric, battery Four-Seater E-Rickshaw
operated motor driven
2 Pedal Assistance Not required
3 Reverse Gear Required
4 Curb Weight(Weight of the electric rickshaw 250 kg Tentative
including battery)
5 Loading Capacity(Weight of four passengers, 380 kg
the driver and the luggage of 40 kg)
6 Laden Weight (curb weight + weight of four 630 kg For a tentative curb weight of
passengers , the driver and luggage of 40 kg) 250kg
7 Ground clearance 180 mm or more IS: 9435
8 Overall size of the E- Rickshaw Length <2.8m
Width <1m
Height<1.8m
9 Windshield Glass windshield with Components Compliance to be
wiper motor submitted to testing agency
(ARAI, ICAT, SIAM etc.)
10 Instrument Panel Speedometer and battery Components Compliance to be
charge indicator submitted to testing agency
(ARAI, ICAT, SIAM etc.)
11 Roof Fiber Glass or a
combination of fiber glass
and good quality metal
12 Controls Start/Stop switch and
indicators
13 Tyres 3 -12” minimum

Delhi Government also by notification (Annexure 6) prescribed that length of e-rickshaw should not
exceed 2.8m, width should be less than 1m and height should be less than 1.8m.

41
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

2) Motor: The motor shall be of “Brushless Type” specifically designed for electric vehicles. These
brushless type motors can be of DC or AC type having high efficiencies at the rated output power
delivered. These motors shall meet the relevant applicable available test standards of the Government
of India approved test centers for automobiles (like ARAI, ICAT, etc.).
a) Motor Controller: The motor controller shall be capable of controlling the motor from start to
maximum speed with no load to full load and also for slight overloads of 20% over and above the
rated full load for shorter durations. They shall be able to continuously drive the motor once
started with the full load with maximum speed for the full declared range of the vehicle. The
controllers shall be stable, robust and shall be capable of operating at all the conditions normally
encompassed by the automobiles. The motor controllers used shall meet the relevant applicable
available test standards of the Government of India approved test centers for automobiles (like
ARAI, ICAT, etc.).
b) Power Supply System: The power supply system to the motor from the storage battery which
includes the AC/DC converter and the motor driving circuit which may be a DC converter or an
inverter as the case may be for the type of motor, along with the controller shall also meet the
relevant applicable available test standards of the Government of India approved test centers for
automobiles (like ARAI, ICAT, etc.).The efficiency of the power supply system which includes
the AC/DC converter and the motor driving circuit which may be a DC converter or an inverter
as the case may be for the type of motor used (calculate as the input power at the motor terminals
divided by the output power at the battery terminals) shall not be less than 95% when the motor
is delivering the rated output power to its shaft. Table 9 specifies the motor specifications given
by SUDA, UP.

Table 9: Motor Specifications according to SUDA, UP

S.No. Description Specifications Remarks/ Reference


Standards/ Test
Standards
1 Motor Output Power 48V, 850W or above but not more than 2000W At full load
2 Motor Type Brushless Motor AC or DC
3 Motor Controller Suitable controller for starting, accelerating, decelerating,
driving and stopping the e-rickshaw smoothly.

MoRTH has specified that battery power of e-rickshaws should not exceed 2000W while MV
Amendment Act (2015) has specified e-rickshaws have motor power less than 4000W.

3) Battery: As the electric rickshaw is supposed to have frequent start-stop operations, and also varying
speed and varying load operations, the battery used shall be able to survive these frequent variations.
It shall be capable of supplying electric power as per the requirement and specifications of the vehicle

42
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

for meeting its travel for the full range with full load. Therefore, the battery used shall be of lead-acid
or better type, and shall be EV grade tubular deep discharge type with high cycle life. The batteries
used in the electric rickshaws shall meet the relevant applicable available test standards of the
Government of India approved test centers for automobiles (like ARAI, ICAT, etc.). Table 10
specifies the battery specifications given by SUDA, UP.

Table 10: Battery Specifications according to SUDA, UP

S.No. Description Specifications Remarks/Reference


Standards/Test
Standards
1 Battery Voltage 48 V Nominal At full load
2 Battery Capacity 100 Ah or more AC or DC
3 Battery Type Lead-Acid or better, EV grade, tubular deep discharge and high
cycle life
4 Battery Charger 220/230 V Nominal Input Voltage, High Efficiency

4) Efficiency: The mechanical power transmission from the motor shaft to the wheels shall be highly
efficient. The direct mounting, or chain and sprocket or any other mechanical arrangement shall be
highly reliable needing least maintenance and shall be tested for all its maneuvers to be able to meet
the electric rickshaw requirements of frequent start, stop and gradient climbing, etc. apart from its
normal running with full load and full speed. The mechanical power transmission system used in the
electric rickshaw shall meet the relevant applicable test standards of the Government of India
approved test centers for automobiles (like ARAI, ICAT, etc.). Table 11 gives the efficiency
specifications according to SUDA, UP.

Table 11: Efficiency Specifications according to SUDA, UP

S.No. Description Specifications Remarks/Reference Standards/Test


Standards
1 Range 80 km or more For a full charge of the battery, to be tested
with full load at ,maximum speed AIS-040
2 Maximum Speed 20 to 25 kmph To be tested with full load
3 Overall Efficiency of 75% or more To be tested at full load with maximum
the electric rickshaw speed for the full range AIS-039
4 Grade-ability 3o gradient-start & move with a speed of To be tested at full load procedure as per
5 kmph or above 7o gradient- ability to AIS -003
start & move.
5 Brakes Parking& service brakes safe & efficient

43
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

6.3 Fitness/Compliance Test Certificates

Fitness/compliance test as directed by the Ministry of Road Transport and Highways (MoRTH) is
required to be carried out for the approval of e-rickshaw. The Compliance Certificate for the following
test to be carried out as per the safety standards for e-rickshaws of the MoRTH given in the Table 12
below:

Table 12: Fitness/ Compliance Certificates according to SUDA, UP

S.no. Parts/Components/Assemblies/Performance Test Standards


1 Automotive lamps used in motor vehicles for the following applications: AIS – 034/2004
 Head Lights Main and Dip
 Parking Light
 Direction Indicator Lamp
 Tail Lamp
 Reversing Lamp
 Stop Lamp
 Rear Registration Mark Illuminating Lamp
2 Wheel rims AIS – 073/2007
3 (a)Installation requirement for lighting , light signalling devices AIS – 0009/2001
(b) Performance for requirement of lighting , light signalling devices AIS – 012/2004
AIS – 010/2004
4 The requirements for construction and functional safety of battery operated vehicles AIS – 038/2003
5 The measurement of net power and the maximum thirty minute power and speed for AIS – 041/2003
battery operated vehicles
6 Traction batteries used in battery operated vehicles AIS – 048/2009
7 Requirement of handholds AIS – 046/2009
8 Range AIS-040
9 Overall Efficiency AIS-039
10 Grade-ability Procedure as per
AIS-003
11 Ground Clearance IS – 9435

Delhi Government has also listed documents required for the grant/ renewal of registration, certificate
and permit as given in Annexure 6.

6.4 Battery Technology used in Electric Rickshaw

Looking into the rechargeable battery technology, Lead Acid Batteries in particular is a popular option
especially in the country like India, because of its cheap cost and easy availability. Newer technologies
possibilities like lithium-ion batteries may come up in the future because of its better efficiency and long
term cost effectiveness. These new batteries are used by foreign country manufacturers like Terra Motors
and Clean Motion (ZeeBee), which lead to overall increase in the cost of the vehicle, therefore, an

44
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

ineffective solution for an Indian scenario. The battery option and its technology are mentioned below:

6.4.1 Starter Lead Acid Battery3


Despite having a very low energy-to-weight ratio and a low energy-to-volume ratio, its ability to supply
high surge currents means that the cells have a relatively large power-to-weight ratio. This feature, along
with their low cost, makes it attractive for use in motor vehicles to provide the high current required by
automobile starter motors. Since, electric vehicles requires high surge current i.e. maximum,
instantaneous input current drawn by an electrical device when first turned on, it is predominantly used in
it.

Life of the lead acid battery is reduced based upon the number of charge cycle it completes (Charge cycle
is the number of the time the battery gets discharges completely and recharged to its full capacity again).
The concept behind this is the charge plates, which corrodes after every charge. There are two main types
of lead-acid batteries: automobile engine starter batteries, and deep cycle batteries.

6.4.2 Deep Cycle Batteries used in E rickshaw


For the purpose of e-rickshaw or any other electric vehicle high traction Deep Cycle Batteries are used. A
deep-cycle battery is a lead-acid battery designed to be regularly deeply discharged using most of its
capacity. A deep-cycle battery is designed to discharge between 45% and 75% of its capacity, depending
on the manufacturer and the construction of the battery. Although these batteries can be cycled down to
20% charge, the best lifespan vs cost method is to keep the average cycle at about 45% discharge.

Deep cycle battery plates have thicker active plates, with higher-density active paste material and thicker
separators. Alloys used for the plates in a deep cycle battery may contain more antimony (a chemical
element) than that of starting batteries. The thicker battery plates resist corrosion through extended charge
and discharge cycles. The structural difference between deep cycle batteries and cranking batteries is in
the lead battery plates.

In contrast, starter batteries (e.g. most automotive batteries) are designed to deliver short, high-current
bursts for cranking the engine, thus frequently discharging only a small part of their capacity. Other
factors important in Battery technology used in e-rickshaws are as under:

Safety: Overcharging causes electrolysis, emitting hydrogen and oxygen. This process is known as
"gassing". Accumulated hydrogen and oxygen sometimes ignite in an internal explosion. The force of the
explosion can cause the battery's casing to burst, or cause its top to fly off, spraying acid and casing
fragments. An explosion in one cell may ignite any combustible gas mixture in the remaining cells.
Similarly, in a poorly ventilated area, connecting or disconnecting a closed circuit (such as a load or a
charger) to the battery terminals can also cause sparks and an explosion, if any gas was vented from the

3
https://en.wikipedia.org/wiki/Automotive_battery

45
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

cells. The cells of batteries typically swell when the internal pressure rises. The deformation varies from
cell to cell, and is greater at the ends where the walls are unsupported by other cells. Such over-
pressurized batteries should be carefully isolated and discarded.

Environment: The auto industry uses over 1,000,000 metric tons batteries every year, with 90% going to
conventional lead–acid vehicle batteries. While lead recycling is a well-established industry, more than
40,000 metric tons (39,000 long tons; 44,000 short tons) ends up in landfills every year (“Getting the
Lead Out", by Environmental Defence and the Ecology Centre of Ann Arbor, Mich, 2003).Some lead
compounds are extremely toxic. Long-term exposure to even tiny amounts of these compounds can cause
brain and kidney damage, hearing impairment, and learning problems in children.

Recycling: Lead–acid battery recycling is one of the most successful recycling programs in the world. In
developing countries like United States 99% of all battery lead was recycled between 2009 and 2013.
Lead acid batteries are recycled 98% by volume, 99.5% by weight. The plastic cases, lead plates, sulfuric
acid, solder, and other metals are 100% recovered for reuse. The only part of a battery that is not
recyclable is the paper separators that wrap the plates. Due to the acid bath the paper sits in, the fiber
length is reduced so far that it cannot be rewoven. The vast majority of deep cycle batteries on the market
today are lead acid batteries.

6.4.3 Lithium-ion Battery (LIB)4


Lithium-ion batteries are common in consumer electronics. They are one of the most popular types of
rechargeable batteries for portable electronics, with a high energy density, small memory effect and only
a slow loss of charge when not in use. The LIBs are used in e-rickshaws which are developed by
companies like Terra Motors in Philippines, Clean Motion in Sweden, e-tuk in Netherlands etc. LIBs are
also growing in popularity and are becoming a common replacement for the lead acid batteries that have
been used historically for golf carts and utility vehicles. Instead of heavy lead plates and acid electrolyte,
the trend is to use lightweight lithium-ion battery packs that can provide the same voltage as lead-acid
batteries, so no modification to the vehicle's drive system is required. Another important issues with
LIB’s is the gradual self-discharge tendency, even if not connected and delivering current at the rate
typically stated by manufacturers to be 1.5-2% per month. The rate increases with temperature and state
of charge. Self-discharge rates may increase as batteries age.

Safety: If overheated or overcharged, Li-ion batteries may suffer thermal runaway and cell rupture. In
extreme cases this can lead to combustion. To reduce these risks, lithium-ion battery packs contain fail-
safe circuitry that disconnects the battery when its voltage is outside the safe range of 3–4.2 V per cell.
Exceeding this voltage range results in premature aging of the cells and, furthermore, results in safety
risks due to the reactive components in the cells. Short-circuiting a battery will cause the cell to overheat

4
https://tuktukfactory.com/#downloads

46
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

and possibly to catch fire. Adjacent cells may then overheat and fail, possibly causing the entire battery to
ignite or rupture. In the event of a fire, the device may emit dense irritating smoke.

Environmental: Since Li-ion batteries contain less toxic metals than other types of batteries which may
contain lead or cadmium they are generally categorized as non-hazardous waste. Li-ion battery elements
including iron, copper, nickel and cobalt are considered safe for incinerators and landfills. The
manufacturing processes of nickel and cobalt for the positive electrode and also the solvent, present
potential environmental and health hazards.

Recycling: At present, not much is invested into recycling Li-ion batteries due to costs, complexities and
low yield. The most expensive metal involved in the construction of the cell is cobalt.

In comparison between different LIB’s, the self-discharge rate is over 30% per month for common nickel
metal hydride (NiMH) batteries, dropping to about 1.25% per month for low self-discharge NiMH
batteries and 10% per month in nickel-cadmium batteries. The performance of lithium-ion batteries can
vary because of wide variety of positive and negative electrode materials, the energy density and voltage
vary accordingly. On average, it has a high capacity of 1200 mAh, a battery voltage of 7.2 V and 8.6 Wh
per cycle of use. Lithium ion batteries are 3 time costlier than lead acid batteries though have 2-3 times
higher life cycles.

Table 13 gives a comparison of different types of batteries used for three wheelers:

Table 13: Comparison of different types of Batteries used in Three Wheelers

Type of Battery Range Efficiency Charging Time Lifetime Price (Rs.)


Flooded Lead Acid/ 60-80 km 40-60% 8-12 hour 6-8 months 18,000-22,000
Starter Batteries5
Deep Cycle Lead Acid 70-90 km 45-60% 7-10 hour 40,000-60,000 km 22,000-25,000
Batteries6 (8-12 months)
Lithium-ion Batteries 80-100 km 60-70% 4-6 hour >1,00,000 km 70,000-80,000
(12-20 months)

6.5 Usage of ITS on electric rickshaws

Electric Rickshaws unlike cabs and private vehicles do not use modern technologies like GPS, panic
button, etc. As a result, these vehicles are usually concentrated in a place where the probability of getting
passengers is the highest. Secondly, electric rickshaw is not considered as a safe means of transport
especially for the females and elderly people as the vehicles cannot be tracked.

5
https://en.wikipedia.org/wiki/Lead%E2%80%93acid_battery
6
http://www.tuktukfactory.nl/#downloads

47
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

6.6 Future Areas of R&D

Due to non-clear policies and support from the Government,


the manufacturers are reluctant to produce or do any R&D on
the up gradation of the vehicle technologies of these electric
rickshaws. However, still companies are supporting their own
R&D in this field. Few of the areas of R&D as derived from the
discussion with the manufactures are relating to differential
axle so that speed can be modified as per necessity. Another Figure 30: Salamander e-rickshaw by H2O
area of research is controller device for increasing safety for
drivers and users. Other technologies include features like vehicle tracking technologies like GPS,
improvement of lithium batteries technology to reduce cost etc. Further technologies that are being
developed around the world are in Philippines, as the country suffers from frequent floods and typhoons,
e-rickshaws which can float on water and operate on land are being developed by H2O Technologies
Salamander rickshaw (Figure 30). It also consists of features like Solar Mobile USB Charging. To reduce
the charging time required to charge the vehicle, ZeeBee of CleanMotion can fully charge in less than an
hour and even developing super charges which can charge the whole vehicle in few minutes. These kind
of improvement in charging technologies can reduce the charging time drastically which can help the
drivers to make more number of trips.

6.7 Manufacturers

Table 14 shows some of e-rickshaws models in India and abroad specifying the difference in the
standards certified by the agencies like ARAI, ICAT etc.
Table 14: Comparison of different e-rickshaw vehicle w.r.t Pricing & other Characteristics
Brand of e- Manufacturer Country of Body Passenger Max. Range Battery Price
rickshaw Manufacture (mm) Seating Speed Type (in Rs.
Capacity (kmph) lakhs)
e-TukClassico7 Tuktuk Factory Netherlands, L: 2980 3 50 70 km Both options 9-9.5
Europe W: 1410 (Deep Cycle
H: 1850 or Li-ion)
7
e-Tuk Limo Tuktuk Factory Netherlands, L: 3980 6 50 60 km Both options 11.5-12
Europe W: 1410 (Deep Cycle
H: 1850 or Li-ion)
8
ZBee Clean Motion Sweden, L: 2400 3 45 50 km Lithium-ion 4.5-5
Europe W: 1250 Batteries
H: 1500

7
http://www.tuktukfactory.nl/#downloads
8
http://cleanmotion.se/

48
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Brand of e- Manufacturer Country of Body Passenger Max. Range Battery Price


rickshaw Manufacture (mm) Seating Speed Type (in Rs.
Capacity (kmph) lakhs)
GEM Prince9 Goenka Electric India L: 2700 4 25 90 km Deep Cycle 1-1.5
Motor Vehicles W: 1000 Batteries
Pvt. Ltd. H: 1730
Speedways Speedways India L: 2700 4 25 80 km Deep Cycle 1-1.5
10
Musafir Electric W: 1000 Batteries
H: 1750
Soni e- Soni E Vehicle India 4 25 80 Deep Cycle
11
rickshaw Pvt. Ltd. Batteries
Terra Motors' Terra Motors Japan L:2800 6 25 90 km Deep Cycle 1-1.3
Y4 Alfa e- India W: 940 Batteries
rickshaw12 H: 1795
e-trik Standard Philippines - 5 60 Lithium-ion -

6.8 Challenges & Constraints

The following are some of the challenges and constraints to growth of electric vehicles in India
(i) Technical barriers involve issues related to efficiency of batteries and charging time. One of the
major barriers is the low specific energy density of most batteries used in EVs, especially lead acid
batteries, leading to increase in charging time and less driving ranges thus reducing the overall life
of the battery.
(ii) Lack of clear policy regulations for supporting the growth of supply and manufacturing of electric
vehicles, setting up infrastructure; incentivize manufacturers to produce electric rickshaws etc.
(iii) Non availability of original spare parts in the Indian market for e rickshaws such as motors, speed
controllers, safety device etc., thus leading to usage of cheap and less efficient spare parts imported
from China.
(iv) Lack of proper enforcement by the concerned authority on the vehicles leading to growth of large
number of unorganized manufacturers in the market.
(v) Infrastructural barriers such as lack of charging infrastructure and absence of business models like
swapping of batteries etc. are not present for electric vehicles.
(vi) Lack of awareness among drivers with respect to overcharging of battery which reduces its life
span. Another issue is non-refueling of the axle oil in the vehicle, which causes wear and tear of
the motor resulting in its lower lifespan and more power consumption of the battery.
(vii) No government support in Research& Development for e rickshaws.

9
http://www.gemev.com/
10
http://www.speedwaysev.com/portfolio/electric-rickshaws-india-manufacturer-supplier/
11
Primary Survey
12
http://www.terra-motors.com/in/

49
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

(viii) An effective pollution control system is a necessity to prevent lead emission. Continuous
improvement in battery recycling plants and furnace designs is required to keep pace with emission
standards for lead smelters.
(ix) Lack of modern technologies like ITS on electric rickshaws lead to concentration of vehicles in
certain areas, lack of safety for female and elderly etc.

50
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Chapter 7: Alternative Development Scenario: Financial Model for E-


Rickshaw

As discussed in the previous chapters, the drivers of e-rickshaw vehicles face financial constraints, as
they generally hire the vehicle. These drivers are financially weak and do not have the required resources
to purchase the vehicle. Further, since the registration of the vehicles is yet to be initiated by the
authorities in the states the process of getting loan is tough. The nationalized banks do not provide loans
for purchase of e-rickshaw, however they do lend money as personal loans at an interest rate of 12-13%
per annum. In the current situation drivers find it easier to resort to private financers even though they
charge higher interest rate of 20-30% per annum. This section assesses various options for financing the
e-rickshaw with merits and demerits of each alternative model.

7.1 Alternative Scenarios Developed for Financing

For financing of e-rickshaw vehicles, following 7 options are suggested:

(i) Option 1- Government Scheme


a) Self-employment scheme
In Bangalore city, the nationalized bank under various Government schemes like “Government Self-
Employment Scheme” provides loans for auto drivers where the Government acts as a guarantor for the
IPT operator. Of the total amount, the applicant makes a down payment of 5% to the bank and the
government contributes upto 20% (which is to be repaid to the government at a predetermined interest
rate - known as “margin money”). The remaining 75% is provided as loan by the bank. The scheme helps
the drivers to become owners, however this kind of loan is again affordable only by few drivers, as 20%
government contribution also has to be repaid later. Such a scheme can be made applicable for e-
rickshaw also. Table 15 below highlights the merits and demerits of the scheme.

Table 15: Merits and Demerits of Self-employment Scheme

Merits Demerits
 Easy availability of loans from the nationalized banks  Burden on government for financing the vehicles.
as the government acts as a guarantor to the bank.
 The government also earns money as the drivers have  Burden of loans still remains on the drivers as later
to repay them back the loan amount with interest at a on the driver has to pay back the loan to the
later period. government and bank.
 It ensures economic stability to the drivers and family,  Large number of documents required to be
as their earnings increase after the loan repayment. submitted to the nationalized banks.
 Delay in processing of loan

51
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

b) Green Business Scheme


Existing Green Business Scheme: In order to promote entrepreneurship among Schedule castes(SCs)
whose annual family income is below Double the Poverty Line (DPL) limit (Presently Rs.81,000/- in
Rural areas &Rs.1,03,000/- in Urban areas). In 2015 Ministry of Social Justice and Empowerment,
Government of India launched a Green Business Scheme to provide financial assistance for environment
friendly ventures like running e-rickshaws etc. Financial assistance is provided to those economic
activities under the scheme that could address the challenges of climate change. Under this scheme an
entrepreneur can avail a loan of upto Rs.1 lakh at an interest rate of 3% per annum with a loan repayment
period of 6 years. This scheme is available at channelizing agencies nominated by the State/UT, Indian
Overseas Bank and selected Regional Rural Banks.

Proposed Green Business Scheme: Same scheme can be extended to general category also, which can be
used to finance e-rickshaw for promoting economic development of the EWS (Economically Weaker
Sections) of the society which is below Double the Poverty Line (DPL) limit (Presently Rs.81,000/- in
Rural areas & Rs.1,03,000/- in Urban areas) with certain modification such as under this scheme an
entrepreneur can avail a loan of upto Rs.1 lakh at an interest rate of 3% per annum and a loan repayment
period of 5 years. Since the life of the e-rickshaw is around 5 years.

The green business scheme is proposed to be applicable to all the citizens of the country but he/ she has
to fulfil the following terms & conditions for availing loan under this scheme:
1) Only one time loan can be availed under the scheme.
2) The person should have a valid driving license.
3) He/ she should pass the e-rickshaw driving test. After passing the test he/ she will get an e-rickshaw
driving commercial license.
4) The driver should have a guarantor either SPV or any other form of guaranty.

Table 16: Merits and Demerits of Green Business Scheme

Merits Demerits
 Easy availability of loans for lower strata of the  Burden on government for financing the vehicles.
society.
 The government is providing loan at lower interest  Burden of loans still remains on the drivers as later
rate to drivers (3%) with longer repayment period. on the driver has to pay back the loan to the
government and bank.
 It ensures economic stability to the drivers and family,
their earnings increase after the loan repayment.

c) Pradhan Mantri Mudra Yojana


Pradhan Mantri Mudra Yojana is a scheme launched by Government of India on 8 th April, 2015. The
scheme will operate under the Micro Units Development and Refinance Agency (MUDRA) Bank, a

52
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

new institution being set up by the Government of India for development and refinancing activities
relating to micro units. The purpose of MUDRA is to provide funding to the non-corporate small
business sector.

Under the scheme any individual / proprietary concern / partnership firm / company / association of
persons (AOP) / limited liability partnership (LLP) / etc. not a defaulter to any Bank / Financial
Institution, is eligible to avail Mudra loan. The same scheme can be used to avail loan for e-rickshaw
also.

Under the scheme, Pradhan Mantri Mudra Yojana includes three categories of interventions.
a) Shishu :- Loan up to ₹50,000
b) Kishore :- Loan ranging from ₹50,000 to ₹5 lakh
c) Tarun :- Loan above ₹5 lakh and below ₹10 lakh

These three categories will signify the growth, development and funding needs of the beneficiaries and
will assure the loan amount to be allotted by Micro Units Development and Refinance Agency Bank.
The rate of interest applicable will be as per the normal rates charged by the banks. These loans are
collateral free. But the assets created out of Bank finance is to be in the name of the Bank.

Table 17: Merits and Demerits of Government Pradhan Mantri Mudra Yojana (PMMY)

Merits Demerits
 Easy availability of loans lead to greater ownership of  Burden on banks for financing the vehicles.
e-rickshaw.
 The loans are collateral free  Burden of loans still remains on the drivers as
later on the driver has to pay back the loan to the
government and bank.
 It ensures economic stability to the drivers and family,
as they do not have to pay rent.

d) Air Ambience Fund, Delhi


The Air Ambience Fund was set up by the Delhi Pollution Control Committee (DPCC) in February
2008 and is collected through the Department of Trade and Taxes. For every litre of diesel sold in
Delhi, the Fund receives 25 paise. As per the Delhi Planning Department’s Report, 2014, the
government had accumulated over Rs.200 crore and spent about Rs.60 crore. Under the fund Rs.60
crore had been used for giving subsidies for battery-operated vehicles including e-rickshaws. Under the
fund subsidy of Rs.5,500 is given to each person who bought the e-rickshaw directly to bank account.
The Air Ambience Fund is to be utilised for the development and use of clean air technologies, waste
management and other related activities that promote environmentally-conscious policies so as to
reduce air pollution, especially vehicular pollution in the city.

53
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

(ii) Option 2- Nationalized Bank Financing


In Agartala, nationalized banks like State Bank of India, Punjab National Bank & United Bank of India
are providing loans at an interest rate of 12-13% per annum. The rate of interest is very high for the
lower income group people. To support the low income drivers, the nationalized banks can be asked to
reduce their interest rates under a special scheme. They may also be requested to reduce the number of
documents required. The mandatory documents to be submitted could be as follows:
 Address proof of current residence
 A quotation (Performa invoice) from the e-rickshaw dealer of the total costs.
 Driver’s License Badge/Display card
 Photo identification with signature: passport size photo, voter card etc.
 Guarantor certified by the government officials.

The survey has revealed that in many cases the average daily income is ₹390. Accordingly to improve the
payback capability of the driver, the loan repayment period should be up to 5 years and an interest rate of
not more than 10% per annum. In case of Philippines the government provides loans to driver without
zero down payment to drivers which is repaid through drivers daily savings. The merits and demerits of
the scheme are given in the Table 18 below.

Table 18: Merits and Demerits of Nationalized Bank Scheme

Merits Demerits
 It ensures economic stability to drivers and their  Delay in processing of loan in case of nationalized
families, as their earnings increase after loan banks.
repayment.
 Since the bank is not provided with a guarantee for
the loan repayment, it does not exhibit a keen
interest to introduce new and better schemes.
 No social benefits like education, uniforms, medical
checkups etc. provided to drivers.

(iii) Option 3- Micro Financing Scheme through Nationalized Banks


A similar scheme was implemented for the cycle rickshaws through the Dip Bahan Rickshaw Bank
Project, Guwahati. Under this scheme the rickshaws are provided to the pullers through micro-credit
loans, and the puller repays the loan at a rate of Rs.25 per day. The rickshaw bank is funded by private
companies (ONGC, Indian Oil Company, Hindustan Lever Ltd.) who also pay rent to the rickshaw owner
for the advertising space on the back of each rickshaw. This scheme was also implemented in other parts
of Assam and cities of Lucknow, Banaras, Allahabad and Chennai. Under the scheme the drivers were
provided with uniforms, insurance, licenses, photo ID, training, health care and repair facilities. However,
this scheme can only be applied with some modification, as financing of e-rickshaw is a costly affair. The

54
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

loan repayment of Rs.25/day in case of cycle rickshaw has to be increased to Rs.85 per day if the interest
rate is 10% per annum. But it can be reduced to Rs.72 per day if an interest rate of 3% is charged. Table
19 below indicates the merits and demerits of the scheme.

Table 19: Merits and Demerits of Micro Financing Scheme


Merits Demerits
 Easy availability of loan from banks.  Investors can take long time to respond in case of
further expansion. The process should be quick so
that no loss is borne by the drivers.
 It ensures economic stability to drivers and their  Cost of cycle rickshaws is lower than e-rickshaw
families, as their earnings increase after loan vehicles, therefore easy repayment is possible on a
repayment. daily basis, but in case of e-rickshaw repayment
require at-least a period of 7 years.
 The bank project also provides social benefits to
drivers and their family with clothing, schooling,
health care etc.
 Donors to fund to the bank gets 100% tax
exemption (Care-India, AIF, MF).
 Create a positive work environment for drivers.
 Additional revenue through advertisements and
services such as mobile recharging, local courier
services etc.

(iv) Option 4- The Ecocabs Model of Fazilka


The Fazilka model used a financial scheme where the nationalized bank along with the participation of
NGO made easy loans available at 4% interest rate under the differential rate of interest (DRI) from RBI
at daily repayment amount of ₹20-₹25. This rate is given to priority sectors such as agriculture,
education, housing, self-employment ventures. The conditions for sanction of loans are that the family
income should not exceed an amount fixed by the bank and the repayment should be made in a maximum
period of 5 years. Revenue from advertisement on the cabs are used for the partial repayment of loan. As
part of this scheme, the drivers are provided uniforms, insurance, licenses, photo ID, training, health care
facilities &repair facilities.

Table 20: Ecocabs model of Fazilka:- Merits & Demerits


Merits Demerits
 Easy availability of loan from banks as the  Limited funds available with NGO as in case of Fazilka.
NGO act as a guarantor.
 It ensures economic stability to drivers and  Fazilka model is successful in a small city (approx. 67, 000
their families, as their earnings increase inhabitants) with only 450 rickshaw operators and the
after loan repayment. model would need to be modified in bigger cities like
Delhi, where the population and registered and
unregistered e-rickshaw vehicles are so many. Here the
role of NGO would need to be a played by a corporate/SPV
set up for the purpose & which has access to funds.

55
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Merits Demerits
 The NGO in charge of the scheme is also  Cost of cycle rickshaws is lower than e-rickshaw vehicles,
able to provide social benefits to drivers therefore easy repayment is possible on a daily basis, but in
and their families with clothing, schooling, case of e-rickshaw repayment requires atleast a period of 5
health care etc. years.
 Additional revenue through advertisements.  The differential rate of RBI is again fixed for priority
sectors with fixed cap on income earning and not all
sections of society can reap benefits.

(v) Option 5- Separate Private Company Formation


The fifth option could be the creation of private companies such as the “Three-wheelers United India
Services Private Limited” (TWUISPL) in Bangalore, which can help the drivers to purchase their vehicle
by offering them a guarantee. The bank contributes 90% which includes TWUISPL contribution of 15%
(as they act as guarantor) towards the vehicle’s cost and the driver is expected to contribute 10%. The
drivers are then expected to repay the amount in daily instalments for 26 days a month for 5 years. In case
of TWUISPL, the financial assistance is provided by local banking partners such as Corporation Bank,
Pragati Gramin Bank, Canara Bank (recent MoU under the project “Namma auto”) and business partners
include ING insurance and Airtel India. Apart from financing, TWUISPL also helps the drivers in
opening the savings bank account, provide them with life and health insurance. This method can be
replicated in case of e-rickshaws but a separate private company need to be formulated which can fund or
act as guarantor for e-rickshaw drivers. This structure also provides additional means of revenues for the
e-rickshaw drivers (advertisements on the e-rickshaw and other services such as mobile recharging, local
courier services etc.). With the help of NGO’s, the drivers can form Self-Help groups, which ensures
payment of loans on time. Table 21 gives the merits and demerits of the scheme.

Table 21: Merits and Demerits of Separate Private Company

Merits Demerits
 Private companies act as a guarantor and ease  If the driver is not able to reimburse the loan within 5
the loan process for the drivers. years, the vehicle is seized. For the e–rickshaw the
repayment should be for 5 years.
 It ensures economic stability to drivers and their  Burden of loans still remains on the drivers as later on
families, as their earnings increase after loan driver has to pay back the loan to the guarantor and
repayment. bank.
 Provide additional means of revenues for the e-  Limited funds of the organization.
rickshawdrivers, and social benefits.
 Risk of sudden shut down of firms if it goes bankrupt.

(vi) Option 6–Aggregator Model


It is an electronic commerce business model where a firm provides a singular platform for e rickshaws
through mobile application. In this model the firm acts as a link between the e-rickshaw driver and the
passengers. The firm’s strength lies in creating an environment which draws visitors to the mobile app/

56
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

website and in designing a system which allows easy detecting and sending requests to the e-rickshaw
drivers about their availability in the nearby areas. Currently, e-taxi providers like Meru, Ola, Taxi for
Sure and Uber are following the same model. Under this model, the fleet is owned by the drivers and not
the company. The drivers are connected with consumers by the company through its mobile application
or website. As part of the agreement, a certain amount of income is fixed for the drivers and in-case if it
is not achieved by the drivers, then the company pays the remaining amount to the drivers. All the
operations are monitored by the company and if the driver income exceeds minimum agreed amount, 15-
20% of the additional earning goes to the company. Besides bringing in passengers, companies like Meru
facilitates bank loans for the drivers to buy the vehicles by acting as guarantor. They then pay EMIs to
Meru which forwards it to the banks to repay the loans. Social benefits like health check-up for the
drivers and their family is also provided by the company like Ola and Taxi for Sure.

Earlier for Meru cabs financing was done by the corporate, where the fleet was owned by the company.
They were then rented to the drivers. Meru drivers had to pay Rs.1,200-1,300 per day to the management
and were promised at least 25 assignments a day. Later, the business model was however changed&
today 50 per cent of its cars are owned by the drivers themselves.

Soon Delhi-NCR commuters can book e-rickshaws through Ola Cabs' app. The initiative, part of Stand
up India campaign, was inaugurated by Prime Minister Narendra Modi on April, 2016.

On the same day OLA Cabs launched e-rickshaw booking service in Delhi-NCR. Commuters can book e-
rickshaws through Ola Cabs app. Under this model Ola would be launching close to 5,100 e-rickshaws, in
partnership with Bhartiya Micro Credit (BMC). These rickshaws will be deployed across Delhi, Gurgaon,
Ghaziabad, Noida and Faridabad. The fare will differ from city to city but in Delhi users will have to pay
Rs.25 for two km and Rs.8 per km for the extra distance travelled. The users can pay by cash or using Ola
Money (the company’s wallet service). For creating employment opportunities for women, BMC has also
arranged e-rickshaw distribution to 151 women from the NCR region.

The following are the merits and demerits option given in table 22.

Table 22: Merits and Demerits of Corporate Financing

Merits Demerits
 Less capital investments into the system i.e.  Service reliability depends on different drivers.
financially strong.
 Less financial burden on drivers for purchase of  Service can be interrupted if drivers call for strike.
vehicles as loan facilities are easily available.
 Drivers can own their vehicles with the help of  Profit Motive can lead to exploitation of drivers.
company which act as a guarantor to the bank.

57
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

 Helps in converting an unorganized market into an  Financial Losses can occur if company shutdown
organized one. services.
 Social benefits for the driver
 Flexible contracts of companies as daily payment
of lower percentage i.e. 10% of the fare.
 Flexible working hours for drivers

(vii) Option 7- SPV Formation


In many cities across the country, currently buses are being operated by an SPV on a PPP basis, wherein
the buses are run by the private operators. The concessionaire could be a group of drivers who form a
consortium to get registration for operations. The SPV often acts as a guarantor for the consortium to
access loans from the bank.

The same model could be applied for the e-rickshaw vehicles operation and financing. For this purpose,
either a special cell (in case of non-existence of SPV), can be set up or the existing one operating the
buses can be given an additional charge of operating the e-rickshaw in the city (Refer Section- 8.3).

SPV can be modified through setting up a call centre and mobile application to provide lead to the e-
rickshaw drivers and the vehicles can be GPS enabled for operational enhancement. The driver can driver
can get himself register with SPV. It can also help individual driver to avail loan easily. The SPV can also
help the drivers to get additional income through advertisements. Therefore, the SPV can earn revenue
from the mobile application download, tele service provider and advertisement on a percentage basis
decided between the entities involved. The merits and demerits of the model are given in Table 23 below.

Table 23: Merits and Demerits of SPV formation

Merits Demerits
 Easy loans available to the driver as SPV acts as a  Complex contracting process and high
guarantor. potential for disputes in case of poorly drafted
agreement
 Very low impact on SPV budget. Both the operational  The SPV will have to make their own
and demand risks borne by the private operators. arrangements for funds for call centre
operation and central control centre activity.
 Less time consuming for loan processing as
concessionaires already known by the government/ SPV.
 Greater revenue, earnings as income is not only earned
from fare box, but also other means like advertisements,
application, etc.
 Greater branding and change of perception for the
customers.
 Large capital investments into system.

58
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

7.2 Comparative Analysis of the Different Options


A comparative analysis of various options reveals the following;
 In Option 1 and 2 the process is lengthy and tedious which require the drivers to be financially sound
in order to repay the loans.
 In options 3, 4, 5 and 6 the fund provision is limited and there are chances of profit motives setting
in or sudden shutting down of the NGOs/ private bodies due to lack of fund. Benefits, therefore,
cannot be provided on a regular basis.
 In the case of option 7 the formation of a special cell / existing SPV in the city, the drivers can form
a consortium and the finance will be easily available, as they will be known to the SPV/ government.
Besides, there would not be any risk of a sudden shortage of funds or close down of companies,
therefore the system would continue to work.

7.3 Recommendation

The above analysis has revealed that aggregator model has its benefit where the aggregator acts as a
bridge between the commuter and the operator. If this role is taken up by an SPV rather than a private
commercial operator it would provide maximum benefit to the e-rickshaw drivers and luring more
activity into the system. For example, the working hours with good pay back, social benefits like medical
check-ups for drivers and family, infrastructure provision i.e. parking, charging points etc. From the SPV
point of view the benefits of heavy investment pooling in, out of fare box revenue, greater market capture
through branding etc. could be possible.

59
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Chapter 8: Institutional Framework for E-Rickshaws

E-rickshaws are playing important role in providing mobility to a large section of the society; still this
sector is not formally owned or recognized by the government. Some of the key issues that emerged from
the feedback received across the cities are of economic and social stability of drivers, provision of
infrastructure, financing and maintenance of vehicles and quality check on standards for vehicles etc. The
main cause of these problems is the lack of a strong institutional framework to govern the sector.

This section deals with the institutional framework that is needed for improving and upgrading the e-
rickshaw services and vehicles.

8.1 Alternatives for Institutional Framework for E-Rickshaws

As a part of the study, four options have been explored to create an institutional framework for the
system. The advantage and disadvantage of each option are specified below:

(i) Option 1: Complete Government Ownership


The first option would be to have the e-rickshaws owned and operated by the government as in the case
of STUs which have been set up by various states. This could eliminate a number of problems as the STU
can then fix the norms for registration, follow vehicle specifications standards, rent, salaries, social
benefits, fix fares, provide infrastructure like stands, terminals and parking facilities etc. The merits and
demerits of the system are given in Table 24 below:

Table 24: Merits and Demerits of Complete Government Initiative

Merits Demerits
 E-rickshaw would have the status similar to that of  Autocratic set up leading to monopoly in the
public transport and recognition from the government. market.
 More organized system, leading to increased reliability  Extra burden for the government as the
and punctuality. government has to own and operate another
mode of transport.
 Reduction of competition between drivers.  Lack of finance to purchase the vehicles.
 Provide economic/social stability to the drivers as they  Burden towards upgradation and maintenance
would get a fixed salary. of the fleet.
 Accountability and efficiency of driver increases,
leading to better driving practices and behavior.
 User Perception changes as it is government owned.

(ii) Option 2: NGOs/Separate Private Entity Ownership


This model is similar to the structure of the Nirmal foundation (G-Auto) and three wheelers United India
Services Private Limited, Bangalore. In this model the e-rickshaw can be brought under a same brand

60
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

which will provide benefits to drivers in financing vehicles, training etc. and the users in availing safe
mobility with 24x7 service. The following are the merits and demerits of the system given in Table 25.

Table 25: Merits and Demerits of NGOS/ Private ownership

Merits Demerits
 Provide economic benefits to drivers by  Lack of finances with NGO might lead to unsustainability of
acting as guarantors for the banks for company.
getting loans.
 Provides social benefits like medical  Provision of infrastructure or introduction of new ideas is
claim, training etc. to drivers. limited due to lack of finance.
 Profit motives can also lead to exploitation of drivers.
 Lack of awareness among people may lead to failure of model.
 Greater risk to drivers as reduction in force the NGO to close
down.

(iii) Option 3: SPV model


In many cities like in Bhopal (Bhopal City Link Ltd.) and Indore (Atal Indore City Transport Services
Ltd.) currently buses and IPT (mostly auto-rickshaws) are being operated by an SPV on a PPP basis. In
this system the buses are run by private operators on a Gross cost model or a net cost model. The
concessionaire could be group of drivers who form a consortium to get their e-rickshaw registered. The
SPV could act as a guarantor for the consortium to access loans from the bank. The same can be
applicable for the e-rickshaw vehicles operation and financing.

For this purpose, either a special cell (in case of non-existence of SPV) can be set up or the existing one
operating the buses can be given an additional charge of operating the e-rickshaw in the city. If SPV is
not present, then special cell should be formed with a consortium of RTO, Traffic Police and Municipal
Corporation to regulate the e-rickshaw services for proper planning and management of operations and
services.

SPV can also be modified through setting up a call to provide lead to the e-rickshaw drivers and the
vehicles can be GPS enabled for operational efficiency. The SPV will help drivers to get registered
easily, acts as a guarantor for facilitating finance and provide other social benefits. The infrastructure for
e-rickshaws will be provided by the Municipality. The driver of e-rickshaws is allowed to retain the
revenue generated from the operation of the e-rickshaws. The SPV can also help the drivers to get
additional income through advertisements. Therefore, the SPV can earn revenue from the mobile
application download, tele service provider and advertisement on a percentage basis decided between the
entities involved. The merits and demerits of the model are given in Table 26 below:

61
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Table 26: Merits and Demerits of SPV/ Special cell formation

Merits Demerits
 Provides economic benefits to drivers as SPV acts as  Poor terms and conditions of contract may create
guarantors to the banks for getting loans. This will disputes or inefficiency to control the service.
help in more ownership of e-rickshaws by drivers
leading to more income and thus social upliftment.
 Easy to plan and provide infrastructure to drivers.  The SPV will have to make their own
 Low impact on SPV budget as both operation and arrangements for call centre operation and
demand risk is borne by the driver itself. control centre activity.
 Easy to monitor, maintain and operate the system
 Social development of drivers, as SPV will also
provide social benefits like medical claim, training etc.
to drivers and make them aware about the schemes.
 More investment for upgradation of vehicles, increase
fleet, infrastructure etc.
 Greater branding and change of perception for the
customers. Thus increased use of services.

(iv) Option 4: Aggregator Model


It is an electronic commerce business model where a firm provides a singular platform for radio taxis
through mobile application. In this model the firm acts as a link between the radio taxis driver and the
passengers. The firm’s strength lies in creating an environment which draws visitors to the mobile app /
website and in designing a system which allows users to easily avail nearby radio taxis. Currently, service
providers like Meru, Ola, Taxi for Sure and Uber are following the same model. Under this model, the
fleet is owned by the drivers not the company and the drivers are provided with customers from the
company side which act as the service provider. A certain amount of income is fixed for the drivers and
in case if it is not achieved by the drivers then the company pay the remaining amount to the drivers as
part of the arrangement. All the operations are monitored by the company and if the driver earns profit,
i.e. beyond their fixed income then an amount of 15% of the extra earning per trip goes to the company.
This model is known as Aggregator Model and can be opted for e-rickshaw operation.

Also, the e-rickshaw drivers can be free to have their activity of carrying passengers with the help of such
a kind of business model. In this model the firm acts as a link between the electric rickshaw driver and
the passengers. The firm's creates an environment/ system which draw visitors to its website/ app on
mobile/ PC and in designing a system that easily allows the users to detect and send requests to e-
rickshaw drivers in the nearby areas e.g. OLA auto rickshaw service provided in Delhi. The firm
generates a profit only when the driver earns above a specified amount of income provided by the firm.
This is a beneficial model if there are more number of passengers wanted to travel alone or in groups and
requires service at their nearby location.

62
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Table 27: Merits and Demerits of Aggregator Model

Merits Demerits
 Financially Strong – investors pooling in more  Profit Motives may arise which may lead to
money. exploitation of driver.
 Use of modern technology and innovative ideas.  Additional investment for GPS and other ITS
facilities for drivers.
 Socio-economic benefits for drivers.  Company may run out of fund as huge investments
 Private company acts as a guarantor for loan and on infrastructure is required which have risk of
promotes it. heavy losses if the company shuts down. If
 Personalized service can be provided to passengers. sufficient customers not provided the company may
incur huge losses.
 More revenue generation to e-rickshaw drivers
leading to economic stability.
 No need to pay for services if enough revenues not
generated.
 E-rickshaw driver can also provide this service
along with their stand-alone service.

8.2 Comparative Analysis of the Different Options

A comparative analysis of various options reveal the following;


(i) In case of option 1, there is a chance of autocratic rule and also might lead to greater financial
burden on the Government.
(ii) In option 2, the fund provision is limited and there are chances of profit motives setting in or
sudden shutting down of the NGOs/ private bodies due to lack of fund. Benefits therefore, cannot
be provided on a regular basis.
(iii) Option 3, the formation of a special cell / existing SPV in the city, The SPV will help drivers to get
registered easily, acts as a guarantor for funds and provide other social benefits. Besides, there
would not be any risk of a sudden shortage of funds or close down of companies, therefore the
system would continue to work.
(iv) Option 4 same situation may arise as in Option 2 with limited funds chances are that profit motives
may force setting in or sudden shutting down the firm due to lack of fund. Benefits may not be
available on a regular basis.
The above analysis has revealed that aggregator model has its benefit, where in the aggregator acts as a
bridge between the commuter and the operator. If this role is taken up by an existing SPV/ special cell in
case of new SPV, rather than a private commercial operator it would provide maximum benefit to the e
rickshaw drivers and luring more activity into the system in terms of the working hours with good pay
back, social benefits like medical check-ups for drivers and family, infrastructure provision i.e. parking,
charging points etc. From the SPV point of view, out of fare box revenue, greater market capture through

63
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

branding and others can be achieved. The existing SPV of city or a special cell can work without much
heavy financial burden on the government and at the same time work as an umbrella organisation for
organising the electric rickshaws.

8.3 Suggested Organizational/Staffing Structure for SPV

The organization structure for the SPV is suggested on the lines of AiCTSL (Atal Indore City Transport
Services Limited), Indore which operates Indore city bus service and IPT and DMRC (Delhi Metro Rail
Corporation). The proposed organisational structure of SPV to manage e-rickshaw services in the city is
given below (Figure 29).

Chairman

Managing Director

IT Manager Transport Planner Manager Finance Operations Manager

Figure 31: Suggested Structure of SPV

The staffing requirement of SPV would be as under (Table 28):


Table 28: Staffing Requirement of SPV

Designation No. Qualification Experience Job description


Chairman 1 IAS or State Civil 15-18 years of experience in Head of the SPV.
Servant civil services
Managing Director 1 To be taken on 15-18 yrs of experience in civil Responsible for overall
deputation from services management.
State Civil Service
Manager Finance 1 MBA (Finance) /CA More than 5 years in finance Financial planning and
and accounting functions in any management of SPV.
organization.
Transport planner 1 Masters degree in More than 3 years in any Propose infrastructure for e-
Transport Planning consulting or operational entity. rickshaw
Operations 1 MBA More than 3 years of experience Monitoring operations of e-
Manager in operation of any fleet. rickshaws.
IT manager 2 B.E/M.E(Computer More than 3 years of experience Responsible for all the ITS
Engineer) in managing IT systems and systems, control systems and
GPS enabled apps. ITS equipment and app based
services of e-rickshaw.
Support staff like 2 Graduate 2 years of experience in Secretary to the Chairman,
secretary, clerical secretariat office work. record keeping, administration,
staff etc. accounting etc.
Grade IV staffs 1 High school pass - Office peon

Above responsibilities may be performed by the officers and staff of the existing SPV of city bus with

64
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

additional charges for e-rickshaw. For the posts of Transport planner, Operation Manager, IT Manager &
other staffs, recruitment can be on a contract basis depending upon the availability. The IT/ Transport
Planning work can also be outsourced if the authority is not able to manage the same. Since no significant
recruitment is done for the system, the SPV will not have financial burden for providing the service.
Other members who can be part of SPV are the RTO, Municipal Corporation and Traffic Police
representatives. The RTO would help in issue of registration, the traffic police will be responsible for
implementation of rules and regulations on road while Municipal body would be responsible for
providing the infrastructural facilities for the electric rickshaws.

8.4 Organizational/Staffing Structure of Special Cell


The organization structure and staffing requirement for the Special Cell, to be created (in case of non-
existence city bus SPV) will be same as in case of SPV. Special cell can be formed with representation
from RTO, Traffic Police, Municipal Corporation (MC) and e-rickshaw operators. In case of special cell
formation the staff from existing departments of MC, Traffic Police and RTO may work for the cell. The
staff of the special cell will continue to work in their respective departments and also share additional
responsibility related to e-rickshaw. The function of the head of the cell can be entrusted to the District
Magistrate. The IT work can also be outsourced if the authority is not able to manage the same. The IT
manager and transport planner services if possible can be provided by the municipality, manager finance
by the RTO and manager operations by the traffic police so as to have joint control over the cell. If there
is no person available with the above profile, new recruitment can be done on contract basis. Other staff
could also be recruited on contractual basis. Since no significant recruitment is done for the system, the
special cell will not have financial burden for providing the service.

8.5 Functions of SPV/ Special cell

To strengthen the institutional framework and for better operation and management of e-rickshaws
service, the SPV or special cell should perform the following functions. The main objective of the SPV or
special cell is that of policy and planning functions, whereas operations will be outsourced to the private
operator. This shall enable senior management to devote time to policy and planning and monitoring
instead of being caught in the day to day operational issues and at the same time reduce the financial
burden on the SPV or the special cell.

Functions of the SPV/ special cell would be as follows:


(i) Helping to get e-rickshaw registered.
(ii) Fixing and revising the fares.
(iii) Selection and implementation of modern technologies.

65
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

(iv) Overseeing the infrastructure provided by the municipality.


(v) Specifications and monitoring of quality standards for vehicles and services.
(vi) Organizing training and skill upgradation programme for drivers for improvement of driving skills
and behaviours.
(vii) Maintain a control room and managing the ITS system (e-rickshaw mobile app, telephone
operations and portal), a management information system and data collection like e-rickshaw
number, crash data and theft related data.
(viii) Providing and monitoring e-rickshaw maintenance workshops.
(ix) Undertake periodic studies to assess the travel demand and review of service.
(x) Marketing and educating the public about the system.

66
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Chapter 9: Recommendations

Keeping in view the need to be considered findings of the study the following points for improving the
operation and management of e-rickshaw services in the cities.
(x) Regulatory Framework for e-rickshaw
(xi) Increasing Economic Stability of drivers
(xii) Improving Infrastructure Facilities
(xiii) Providing Social Benefits to the drivers
(xiv) Improving Vehicle Technology
(xv) Use of Modern Technology like ITS
(xvi) Mechanism for Financing of e-rickshaw vehicles
(xvii) Establishing Institution for e-rickshaw
(xviii) Formulating Fare Fixation Formula

9.1 Regulatory Framework for E-Rickshaw

The problem of a proper policy and regulatory framework for e-rickshaws need to be reviewed in the
context of Central Motor Vehicles Act & Rules and State Motor Vehicle Rules. Emphasis should be to
encourage the following:
 Use of modern technologies,
 Explore the possibilities of innovative financing of vehicles,
 Improvement of socio-economic conditions of commercial drivers,
 Demarcation of roles and responsibilities of various institutions,
 Standardize the rules for e-rickshaw relating to issue of registration of vehicles, penalties and time
for processing, documents required etc.

The state should also modify the rules to include the following:
 Various kinds of fees must be paid for registration of old vehicles. The fees can be fixed according
to the average annual earnings of drivers in the states.
 Optimum fares should be proposed so to help the drivers to fix and revise the fares.
 Develop new schemes for promotion of electric rickshaws.

67
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

9.1.1 Registration of e-rickshaw

Considering the problems earlier faced by e-rickshaws drivers in obtaining permits as mandated by state
law in Delhi, Karnataka etc. at present permit is not required for plying of e-rickshaw as notified vide
Govt. of India notification of 30th Aug, 2016 which states that “The provisions of sub-section (1) of
section 66 of the Motor Vehicles Act, 1988 will not apply to e-carts and e-rickshaws (as defined in
section 2A of the said Act) that are used for carrying goods or passengers with personal luggage. This
means that vehicles that are registered as e-carts or e-rickshaws will not require any permits.” But driver
has to get e-rickshaw registered to ensure safety of passengers as per Motor Vehicles Act.

Considering the present scenario of rapidly growing e-rickshaws in the cities, the number of e-rickshaw
should be controlled to prevent undue congestion occurs on roads and to improve the city infrastructure
in planned manner. To control the number of e-rickshaw plying in city the government can impose
infrastructure constraints like limited number of parking spaces, limited number of charging points,
penalties for breaking rules like parking in no parking zones etc. this is to ensure that no excess.

The number of e-rickshaw required in different cities as per the current analysed trend, availability of
Public Transport and auto-rickshaws is obtained by the proposed formula below:

𝑚% 𝑋 𝑝
Optimum no. of e-rickshaw to be present in a city =
𝑛𝑋𝑡
where, ‘m’ is modal share of e-rickshaw
‘p’ is the population of city
‘n’ is the number of seats per e-rickshaw
‘t’ is the no. of trips per e-rickshaw

For the purpose of the calculating the numbers it has been assumed that in future, equal number of e-
rickshaws and auto-rickshaw so that there is no discrimination between both the modes of transportation
since the two serve similar as well as different lengths of trips.

For the purpose of calculations the parameters are taken as follows:


m% = (Ratio of e-rickshaw with auto-rickshaw X % IPT vehicles)/100
p = 1,00,000 for calculating per lakh populations number
n = 4 as per design of vehicle from study
t = 15 trips per day as observed from the study

68
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Table 29: Recommended no. of e-rickshaws in cities

Population of Presence of PT Absence of PT


City % of modal % of modal No. of e- % of modal No. of e- Ratio of e-
share of IPT13 share of PT rickshaws share of IPT rickshaws rickshaw to Auto-
(per lakh pop.) (per lakh pop.) rickshaw14
<5 lakhs 5 5 42 10 83 50:50
5-10 lakhs 3 9 25 12 100 50:50
10-20 lakhs 8 13 67 21 175 50:50
20-40 lakhs 6 10 50 16 133 50:50
40-80 lakhs 7 21 58 28 233 50:50
>80 lakhs 7 44 58 51 425 50:50

9.1.2 Creation of an Institution for Regulating Operations in Cities


There is a need for creation of a full time institution in all the cities for the day-to-day operations of the e-
rickshaws services. This institute would look after the planning, fares fixation, fixation of vehicle
standards, quality of services, benefits for drivers and other related activities.

9.1.3 Strong Enforcement


To control the number of e-rickshaws and to check the chaos due to system, strong enforcement of rules
is needed. The traffic police can challan the vehicle if not plying as per regulations. Further, after the
creation of parking infrastructure the e-rickshaws parked in other than the designated parking spaces can
be fined.

9.2 Economic Stability of Drivers

E-rickshaw sector is said to be unorganized, therefore, its services are provided by individual drivers
(who may be owner driver or rented e-rickshaw driver). The survey of 5 cities indicated that most of the
e-rickshaws drivers are financially weak as a result, most of them (49%) hire e-rickshaws vehicles on rent
from the owners (varying from city to city). This results in lower income of the driver. In addition to the
rent, the drivers have to pay vehicle minor maintenance and other cost. All these factors together lead to
economically unstable conditions of e-rickshaws drivers.

However, this problem could be addressed to some extent in the following manner:
(i) The rent should be fixed by the RTO, so that owners cannot charge the drivers unreasonably. The
rent should be fixed considering both the operator and drivers perspective in mind and also other
factors like cost of vehicle, depreciation cost, profit margin, maintenance cost, electricity cost, fare
per person and average number of passengers per day. The rent fixation will help to ensure minimum
income for drivers and check the exploitation of drivers.

13
Wilbur Smith Associates, MoUD (2008),”Study on Traffic and Transportation Policies and Strategies in Urban
Areas in India”.
14
Ratio as per no. of seats, not no. of vehicles

69
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

(ii) In order to bring economic stability, one or more of the 7 different options could be tried suiting to
the local conditions
 Option 1- Government scheme like Self-employment, Green Business and Pradhan Mantri
Mudra Yojana
 Option 2- Nationalized bank financing
 Option 3- Micro financing scheme through nationalized banks
 Option 4- The Ecocabs model of Fazilka
 Option 5- Separate private company formation
 Option 6–Aggregator Model
 Option 7- SPV formation
The merits and demerits of all these options are discussed in detail in Chapter 7 in detail as such
suitable model may be opted.
(iii) As far as the maintenance cost of the owners and the drivers is concerned, it can be lowered by
providing the drivers with repair workshop and proper training to do the basic repairs, so that every
time for minor repair work the drivers do not have to go to the private workshops.
(iv) To increase the earning of the drivers further, other options like advertisements, renting of vehicles
for rallies, schools, tourism activities etc. can be explored in various cities.

9.3 Infrastructure Facilities

E-rickshaws vehicles are not formally recognized by the government and therefore often don’t have the
basic infrastructures facilities and proper work environment for the drivers. Following are the suggestions
for improvement:
(i) Proper and sufficient e-rickshaws stands facilities should be provided at the main terminals like
railway stations, airports or places of interchanges with other modes of Public Transport like Metro,
BRT, etc. This will help reduce congestion on roads as the drivers do not have to stop randomly
anywhere thus solving problems for illegal parking.
(ii) Stands for e-rickshaws should be created depending on the demand of passengers and land use of the
area. For example, if the area is commercial or residential then stands must be provided as the
demand is on the higher side compared to other areas.
(iii) To check the congestion on roads due to parking and long queue of waiting e-rickshaw on the
roadside for picking up or dropping off passengers, small “halt and go” stands for these vehicles can
be provided to allow smooth flow of traffic. The process has been implemented very successfully at
Delhi Rohini West Metro Station and its success should encourage replication in other areas also.
(iv) Parking areas should be created for the drivers to safely park their vehicle at night on a payment of

70
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

minimum charges. Parking space can be allocated by the government or a private party. A fixed
number of parking spaces may be provided at each stand or location for strict regulations. To lower
the cost of maintenance, common repairs and maintenance facilities could also be provided in the
same place. Parking spaces should be provided near each Bus stop. Railway Stations, Metro stations,
Bus Stands should have designated e-rickshaw stands with additional facilities. The parking should
be covered as well as open. During summers shade is needed for parking as the e-rickshaws are
mostly of metal frame which become hot by standing in the open and becomes uncomfortable to the
drivers and passengers.
(v) The creation of new e-rickshaws stands should also have various amenities like rest shelters where
they can have access to drinking water and toilets. It does not cost much but can significantly
improve the working conditions of the drivers and thus the quality of the service.
(vi) The availability of charging points seems essential, as the drivers can charge their vehicles during
lunch breaks and when idle so as to save time. It will also help them to earn extra income due to
increase in number of working hours. The charging points should be located at every parking areas,
night shelters and at rickshaw stands. These integrated spaces can be commercialized for financing
the infrastructures. The charging facilities can also be integrated with other vehicles such as electric
cars and 2-wheelers in future. The charging points should be integrated with the parking spaces of e-
rickshaws as has been done in France where Électricité de France (EDF) and Toyota are installing
recharging points for PHEVs on roads, streets and parking lots. This would be economically viable
proposition while planning for the charging related infrastructure. The charging facilities have been
provided in USA by Tesla motors and in India by Hero, Mahindra etc.
(vii) It is often observed that e-rickshaws vehicles are parked near the intersections. There should be strict
restrictions for regulating the halting of these vehicles near intersections. A minimum distance of
100-150 meters from the intersections/ junctions should be observed for restricting the halting of e-
rickshaws.

Future Development of Source of Energy & Charging Facilities


The electricity to power these batteries can come from any renewable power plants like biomass, solar,
wind etc. In fact it can be envisaged to have battery-charging stations powered by PV units. Hence these
rickshaws can truly be called as renewable energy transport system. To convert all existing 1 million
rickshaws in India into electric rickshaws will require only one 600 MW power plant to run them. The
solar energy can be taped in two ways with the help of solar vehicles:

(i) Directly solar-powered - fitted with solar panels, which convert solar energy into electric energy and
which can significantly power the vehicle.
(ii) Indirectly solar-charged - not fitted with solar panels; powered instead by a battery charged prior to

71
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

use by remote solar panels, usually at a fixed location.

In future, technologies like wireless charging, turbo chargers etc. can be used if the technology becomes
cheaper. This will help in better integration of charging facilities with the parking spaces and also reduce
time for charging leading to enhanced utilisation of e-rickshaws.

9.4 Social Benefits for the Drivers

Study reveals that the social status of the drivers is poor. No help is provided by the government in terms
of training, insurance, medical facilities, pension, and education as this sector is unorganised. Also long
working hours and lack of proper unions to look after the welfare of the drivers are some of the major
constraint faced by the drivers as mentioned in earlier section.
These problems may be addressed by taking action through the following schemes/ programme:
(i) For the provision of social benefits to the drivers the government/ SPV/ private bodies/ NGOs/
unions of e-rickshaws vehicles must create awareness among the drivers to avail the following
facilities provided by the Government schemes:
1) Accident Insurance: To extend social security cover, government/ SPV / private bodies/ unions of
e-rickshaws vehicles can ensure drivers under the Janta Personal Accident Insurance Policy with
an annual premium of Rs.15/- wherein the family of the drivers will get Rs.25,000/- on the death
of the drivers and the maximum sum that can be insured is Rs.1,00,000 per person. This Janta
Personal Accident Insurance is being promoted by the New India Insurance Company.
 Pradhan Mantri Suraksha Bima Yojana is available to people between 18 and 70 years of age
with bank accounts. It has an annual premium of ₹12 excluding service tax, which is about
14% of the premium. The amount will be automatically debited from the account. In case of
accidental death or full disability, the payment to the nominee will be ₹2 lakh (US$3,000) and
in case of partial disability ₹1 lakh. (Full disability has been defined as loss of both eyes,
hands or feet. Partial disability has been defined as loss of one eye, hand or foot.)
 This scheme will be linked to the bank accounts opened under the Pradhan Mantri Jan
DhanYojana scheme. Most of these accounts have zero balance initially. The government
aims at reducing the number of such zero balance accounts by using this and other related
schemes.
2) Life insurance: Pradhan Mantri Jan Dhan Yojana
Under the scheme:
 Account holders will be provided zero-balance bank account with RuPay debit card, in
addition to accidental insurance cover of Rs.1 lakh(to be given by 'HDFC Ergo').

72
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

 Those who opened accounts by January 26, 2015 over and above the 1 lakh ₹ accident claim
will also be given with life insurance cover of ₹ 30,000(to be given by LIC).
 After six months of opening the bank account, holders can avail Rs.5,000 overdraft from the
bank.
3) Medical checkups: Free medical check-up/consultation facilities at various government and
private hospitals can be extended to the drivers and their families.
4) Pension scheme: Atal Pension Yojana launched in 2015 is a government-backed pension scheme
in India targeted at the unorganized sector. Under this scheme, for every contribution made to the
pension fund, the government will contribute an equal amount to his/her fund. Depending on the
contribution made between the age of 18 and 40, at the age of 60 a sum of ₹1000, ₹2000, ₹3000,
₹4000 or ₹5000 will be paid monthly.
5) Free family Education: At present, under “Sarva Siksha Abhiyan”, the education is free for any
school children. Adult education can also be promoted for the drivers through the
Government/NGOs/ private bodies/ SPV.
(ii) E-rickshaw unions: A single e-rickshaws management centre (or union) could be set up in all cities
with defined functions and structure to look after the welfare of the e-rickshaws drivers.

9.5 Vehicle Technology

The following are some of the recommendations relating to vehicle technology:

(i) Introduction of modern technologies in batteries like lithium ion in future in order to improve
efficiency and long term cost effectiveness. Though the cost of these batteries is high but by
subsidizing the cost the government can promote their use. As far as possible the e-rickshaw
batteries should be recycled to have least adverse environmental effect. The deep cycle lead acid
batteries should be used in place of flooded lead acid batteries as they are more efficient. In the long
run as the technology develops and the cost of batteries come own the efforts should be made to
upgrade to lithium-ion Batteries.
(ii) Encourage market setup for spare parts in India as a promotion of “Make in India”, concept of Prime
Minister Narendra Modi. This would help in job creation and skill improvement.
(iii) Provision of technical training / creating awareness among the drivers regarding vehicle technology
be made mandatory in the regulations.
(iv) Development of a proper policy related to electric rickshaws by the Government should include the
following:
 Incentives to drivers in terms of finance for buying new vehicles or for retrofitting the existing

73
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

one with new technologies.


 Subsidizing the cost of electric rickshaws in the market.
 Promotion of Research and development in the field
 Specification of vehicle standards
 Provision of infrastructure in terms of charging points facilities, smart metering etc.
 Provision of training and creating awareness among drivers

9.6 Usage of Modern Technology like ITS

ITS components in case of e-rickshaw vehicles can be categorized into three parts i.e., in a vehicle, in the
control room, in operation and management to improve the efficiency. These components can be
implemented in phases. Firstly, the installation of GPS in vehicles along with a Traffic Management
Centre, e-challan and panic button can be implemented. Later on e-wallet for payments can be done.
Subsidy can be provided to the owners of these vehicles to partially meet the cost of GPS/GPRS. It
should be made mandatory for the drivers to have a GPS in order to get their vehicle registered.

9.7 Financing of E-Rickshaw Vehicles

Analysis of various models indicates that the aggregator model is better suitable for e-rickshaw financing
operations. Only with slight modification i.e, if this role is taken up by an SPV rather than a private
commercial operator, it would provide maximum benefit to the e-rickshaw drivers and luring more
activity into the system. For example, the working hours with good pay back, social benefits like medical
check-ups for drivers and family, infrastructure provision i.e. parking, charging points etc. can help the
drivers to a great extent. From the SPV point of view it will have benefits of heavy investment pooling in,
out of fare box revenue, greater market capture though branding and other sources.

For ensuring better financial returns to the drivers, loans will ensure higher income to the drivers in the
following manner.

Proposed Loan Scenario


The calculation of EMI to be paid by the driver is made based on the following assumptions:
 The capital cost of an e-rickshaw is about Rs.1,20,000
 The repayment period for the loan is taken as 3 or 5 years, as the life of e-rickshaw is about 5 years.
 The Average vehicle occupancy is 4 passengers.
 Average interest rate of 10% per annum (Present nationalized bank rate of interest) is taken for non-
subsidized financing of e-rickshaws like in case of PMMY. If the green business scheme is

74
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

implemented then an average interest rate will be of 3% per annum.

Tables 30 & 31 give EMI calculations at different rates of interest & time period.
Table 30: EMI for different rate of interests (5 years term loan)

Rate of Interest (%) EMI per annum (Rs.) EMI per month (Rs.) EMI per day (Rs.) Final Cost (Rs.)
10% 30,596 2,550 85 1,52,979
9% 29,892 2,491 83 1,49,460
8% 29,198 2,433 81 1,45,990
7% 28,514 2,376 79 1,42,569
6% 27,839 2,320 77 1,39,196
5% 27,175 2,265 75 1,35,873
4% 26,520 2,210 74 1,32,599
3% 25,875 2,156 72 1,29,375

Table 31: EMI for different rate of interests (3 years term loan)

Rate of Interest (%) EMI per annum (Rs.) EMI per month (Rs.) EMI per day (Rs.) Final Cost (Rs.)
10% 46,465 3,872 129 1,39,394
9% 45,792 3,816 127 1,37,375
8% 45,124 3,760 125 1,35,373
7% 44,463 3,705 124 1,33,389
6% 43,808 3,651 122 1,31,423
5% 43,158 3,597 120 1,29,474
4% 42,515 3,543 118 1,27,544
3% 41,877 3,490 116 1,25,631

From the above table 30 & 31, it is observed that higher the interest rate higher the EMI but in case of 5
years term loan the daily EMI is below Rs.100 which will have less financial burden on the drivers for
repaying the loans.

Table 32: Summary for EMI for different loans scenario


Interest Rate 3% Interest Rate 10%
Repayment Period 3 years Rs.3,490 Rs.3,872
Repayment Period 5 years Rs.2,156 Rs.2,550

Thus, EMI payment of Rs.2,156 per month, for a period of 5 years with an interest rate of 3% per annum
under Green Business scheme works out to Rs.72 per day. If no subsidy is provided on the interest rate,
then the EMI works out to Rs.2,550 per month for 5 years repayment period, compared to a loan
repayment period of 3 years where the burden on drivers is more. From analyses it is observed that
taking loan is more beneficial than renting the vehicles as this will help in raising the monthly income of
Rs.3,750 which is more compared to a non-rental vehicles.

75
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

9.8 Institution for E-Rickshaw

As discussed earlier, a special cell or SPV which also operates on aggregator model is found to be most
suitable for e-rickshaw operations. This model will provide maximum benefit to the e-rickshaw drivers
and help them in luring more activity into the system. For example, the more working hours will have
good payback. Social benefits like medical check-ups for drivers and family, infrastructure provision i.e.
parking, charging points etc. will be easy to provide in this model. For the SPV, out of fare box revenue,
greater market capture though branding and others benefits will also be available. The existing SPV of
city or a special cell can work for the same without much financial implications and at the same time it
can also work as an umbrella organisation for electric rickshaws.

The SPV/ special cell will assist to provide registration to e-rickshaws, undertake periodic studies to
assess the travel demand, based on which the service can be improved. It will also develop user interface
of the mobile app, facilities for call centers, maintain a control room for selecting and implementing of
technologies & manage the ITS system. It will be responsible for collecting data for number of e-
rickshaw, crashes and theft related data. SPV/ special cell will also monitor quality of services, fix the
fares, market the service, arrange the training of drivers, improve vehicles specifications for safety and
better quality of the vehicle.

9.9 Minimum Fare Structure

The average income of an e-rickshaw driver is Rs.11,700 per month, i.e. about Rs.390 per day which is
equal to the national minimum wage of Rs.390 per day as per the Industrial Labour Department,
Government of India. Thus it does not provide him with enough resources to provide better education for
his children or to ensure good health for his family. In order to improve the socio-economic conditions of
the driver the following fare fixation formula is suggested. Though the recommended fare structure for e-
rickshaws should be fixed only after consultation with e-rickshaw drivers if required and the fare may
vary from city to city depending upon different socio-economic conditions.

Proposed Fare Structure


The proposed fare fixation formula for e-rickshaws developed by the team is as under at an interest rate
(EMI) of 10%:
𝐹𝑎𝑟𝑒 𝑝𝑒𝑟 𝑝𝑒𝑟𝑠𝑜𝑛 𝑝𝑒𝑟 𝑘𝑚
𝑘 (𝐶𝑜𝑛𝑠𝑡𝑎𝑛𝑡 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑝𝑟𝑜𝑓𝑖𝑡 & 𝑚𝑖𝑛. 𝑤𝑎𝑔𝑒𝑠)
= ∗ [𝐸𝑀𝐼 + 𝐹𝑢𝑒𝑙 𝐶𝑜𝑠𝑡
𝑁𝑜. 𝑜𝑓 𝑃𝑎𝑠𝑠𝑒𝑛𝑔𝑒𝑟𝑠 𝑝𝑒𝑟 𝑑𝑎𝑦
+ 𝑀𝑎𝑖𝑛𝑡𝑒𝑛𝑎𝑛𝑐𝑒 𝐶𝑜𝑠𝑡]

76
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

3.3 𝐵𝑃
𝐹𝑎𝑟𝑒 𝑝𝑒𝑟 𝑝𝑒𝑟𝑠𝑜𝑛 𝑝𝑒𝑟 𝑘𝑚 = ∗ [(0.071 ∗ 𝐶𝑉) + ( 𝑋 𝐸) + (0.28 𝑋 𝑊)]
𝑃𝑡 1000

Where:
P = No. of passengers per day
CV = Cost of vehicle
E = Per Unit Electricity Cost (Commercial Rate)
BP = Battery Power of Vehicle
W = Minimum Wage
t =Average Trip length

The above formula is based on minimum wages specified by the Industrial Labour Department,
Government of India. The formula ensures that the income levels of drivers is above the minimum wage
of Rs.11,700 per month. Using the formula the minimum fare per trip per person for a distance of 4 km
works out to Rs.13.

For the purpose of calculations following assumptions have been taken based on the findings of the
study:
 Passengers per day = 65
 Cost of Vehicle = Rs.1,20,000
 Unit Rate Electricity (commercial) = Rs.8 per unit/ per 1 kWh
 Battery Power = 100 Ah (48V) = 4800 W (Power (P)= Current (I) x Voltage (V))

Table 33: Calculation of Driver's Income (Owned Vehicle Scenario)

Min. Wage 2015-16 Min. Wage 2015-16


30 day working 26 day working
Minimum Wages per day (₹) 390 450
EMI (₹) 85 85
Maintenance Charges per day15 (₹) 10916 126
Fare per trip (₹) 11.82 12.67
Fare per km (₹) 2.95 3.17
Revenue per day (₹) 768 824
Net Income per day (₹) Rs.535 Rs.574

The calculations in the table 33 shows that in using the above formula in various scenario, the net
income of drivers is above the minimum wages specified by the government. The operating cost of e-
rickshaws can be reduced by improved technologies and better built quality of these vehicles.

15
Maintenance Charges per day = 0.28 X Min. Wages per day
16
From Study Maintenance cost per month is Rs.3000 plus 300 misc. expenses which is equal to Rs.109 per day

77
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Table 34: Calculation of driver's income (Rented Vehicle Scenario)

Amount (Rs.)
Min. Wage 2015-16 Min. Wage 2015-16
30 day working 26 day working
Rent per day Rs.300 Rs.300
Maintenance Cost per day17 Rs.60 Rs.60
Revenue per day Rs.768 Rs.824
Net Income per day Rs.408 Rs.464

If the above formula is used for rental scenario for fare fixation, the drivers will earn less than the
minimum wage even if the fare is revised from Rs.12 to Rs.13. As such in case of rented vehicle scenario
drivers are not in a position to earn minimum wages per day.

17
Maintenance cost for rented vehicles = 20% of Rent

78
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

Chapter 10: Way Forward

Considering the various issues faced by e-rickshaw drivers and users way forward is recommended as
under:
(i) Ministry of Urban Development may issue the advisories for further follow up action to implement
the proposed recommendations by the state/ city authorities.
(ii) The existing SPV for city buses may take additional charge of e-rickshaw till new arrangement is
made by state/ city authorities.
(iii) In the absence of SPV in cities- Special cell based on aggregator model may be considered by the
city authorities for e-rickshaw which may also function as umbrella body at city level in this
regard.
(iv) MoUD/ IUT may organize workshops to disseminate the findings of the study for creating
awareness among city officials and general public.
(v) MoUD may send advisory to state government/ city authorities to refer this report for guidance.
(vi) Promoting e-rickshaw as a clean mode under various government schemes/ missions.
(vii) MoUD/ IUT may take up a specific study for assessing the model share of e-rickshaw and prepare
a model city level plan for reference and guidance.
(viii) Government may consider formulating guidelines for multifarious use of e-rickshaws including
intermediate public transport (IPT) since these vehicles are also being used for carrying freight as
part of last mile connectivity for goods in small and medium towns.
(ix) Government should make provisions for incorporating e-rickshaws with more than 4 seats so that
changes in designs of e-rickshaws with advancement in technology could be made.

79
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

References

Policies, Schemes & Guidelines


[1] Governmnet of National Cepital Territory of Delhi, Transport Department, Operation Branch,
Procedural Guidelines for licensing/ Registration/ Fitness/ Grant of Permit of E-Rickshaw, New
Delhi, 2015.
[2] National Urban Transport Policy, 2006.
[3] State Urban Development Agency, (SUDA) Uttar Pradesh, “Competitive Bidding for The Supply of
E-Rickshaw and Their Comprehensive Warranty Maintenance Services and Establishment of
Battery Charging Centres in all Districts of Uttar Pradesh,” Lucknow, 2015.
[4] National Scheduled Castes Finance & Development Corporation, “Green Business Scheme,” Delhi.
[5] Governmnet of National Capital Territory of Delhi, Transport Department, “E-Rickshaw Sewa
Scheme,” Delhi, 2014.
[6] Tripura Battery Operated Rickshaws Rules, 2014.
[7] The Motor Vehicles (Amendment) Bill, 2015.

Reports
[8] Institute of Urban Transport, “Improving and Upgrading IPT Vehicles and Services: A Study,”
2014.

[9] S. Singh, “A Study of the Battery Operated E-rickshaws in the State of Delhi,” Centre for Civil
Society, Delhi, 2014.
[10] Wilbur Smith Associates, MoUD, “Study on Traffic and Transportation Policies and Strategies in
Urban Areas in India,” 2008.

Journals
[11] M. Iqba, S. Akhter and S. Ahmad, “Study on Merits and Demerits of Two Transport Systems:
Battery Operated Easy Bike with CNG Operated Auto Rickshaw at Sylhet City in Bangladesh,”
IOSR Journal of Mechanical and Civil Engineering, vol. 5, no. 5, pp. 25-32, 2013.
[12] V. D. Srivastava and D. K. Mishra, “Correlation between Green occupation and Socio-Economic
welfare of E-rickshaw pullers in Lucknow, U.P,” REX Journal, Renewable Research Journal, vol. 3,
no. 1, pp. 360-365, 2014.

[13] J. Borrás, “The Philippines Wants 100,000 Electric Tuk Tuks on the Road by 2016,” 18 August
2013. [Online]. Available: http://gas2.org/2013/08/18/the-philippines-want-to-put-100000-electric-
tuk-tuks-on-the-road-by-2016/. [Accessed 4 September 2015].

80
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

[14] D. Kaushik, 6 June 2015. [Online]. Available: http://www.careerride.com/view.aspx?id=23186.


[Accessed 25 August 2015].
[15] M. S. Rana, F. Hossain, S. S. Roy and S. K. Mitra, “Energy Consumption by Battery Operated Auto-
rickshaws,” Daffodil International University Journal of Science and Technology, vol. 8, no. 2, pp.
71-76, 2013.
[16] M. Rana, F. Hossain, S. Roy and S. Mitra, “Battery Operated Auto-rickshaw and Its Role in Urban
Income and Employment Generation,” International Journal of Advancements in Research &
Technology, vol. 1, no. 5, pp. 1-5, 2012.

[17] S. Madan, “E-Rickshaws- The Future Public Transport,” 26 June 2014. [Online]. Available:
http://followgreenliving.com/e-rickshaws-future-public-transport/. [Accessed 10 September 2015].
[18] TERI, UN Habitat & Genus, “Improving Informal Transport: Case studies from Asia, Africa and
Latin America,” [Online]. Available: http://mirror.unhabitat.org/downloads/docs/11804_1_ 594697
.pdf. [Accessed 15 Feburary 2016].

Websites
[19] “paycheck.in,” [Online]. Available: http://www.paycheck.in/main/salary/minimumwages/ tripura.
[Accessed 16 September 2015].
[20] [Online]. Available: http://www.labourlawreporter.com/latest-minimum-wages/. [Accessed 17
September 2015].

[21] Transport Department, Government of Delhi, [Online]. Available: http://www.delhi.gov.in/


wps/wcm/connect/doit_transport/Transport/Home/Auto+and+E-+Rickshaw/E+Rickshaw+Notice/.
[Accessed 5 September 2015].
[22] Press Trust of India, New Delhi , [Online]. Available: http://www.business-standard.com/article/
politics/sc-notice-to-centre-states-on-plea-to-ban-e-rickshaws-114070700699_1.html. [Accessed
28 August 2015].

[23] [Online]. Available: http://www.ucanindia.in/news/tripura-to-register-battery-operated-rickshaws/


25302/daily. [Accessed 29 August 2015].

[24] [Online]. Available: http://www.theshillongtimes.com/2014/11/08/tripura-issued-temporary-ban-


on-sale-of-e-rickshaw/. [Accessed 29 August 2015].
[25] “Rickshaw,” [Online]. Available: https://en.wikipedia.org/wiki/Rickshaw#North_America.
[Accessed 5 September 2015].

[26] “Electric Rickshaw,” [Online]. Available: https://en.wikipedia.org/wiki/Electric_rickshaw.


[Accessed 6 September 2015].

81
Electric Rickshaws in Indian Cities: Status & Scope for Improvement

[27] A. Almendral, 12 June 2014. [Online]. Available: https://nextcity.org/daily/entry/this-country-is-


planning-its-entire-transportation-system-around-electric-t. [Accessed 29 August 2015].
[28] “White Dust,” 7 July 2015. [Online]. Available: http://www.whitedust.net/how-to-start-business-
with-olauber-taxi-for-sure/. [Accessed 11 Novemeber 2015].

[29] “Business Today.in,” [Online]. Available: http://www.businesstoday.in/magazine/cover-story/


india-taxi-market-war-heats-up-ola-cabs-uber-strategy-leaders/story/222542.html.
[Accessed 15 Dec 2015].
[30] “Zeebee,” CleanMotion, [Online]. Available: http://cleanmotion.se/zbee/facts/. [Accessed 2016
Jan 20].
[31] “Gizmag,” 10 April 2015. [Online]. Available: http://www.gizmag.com/salamander-amphibious-
trike/36947/?li_source=LI&li_medium=default-widget. [Accessed 12 February 2016].

[32] “Gizmag,” [Online]. Available: http://www.gizmag.com/terra-motors-electric-tuk-tuk/26885/.


[Accessed 22 January 2016].
[33] S. Sharma, A. Dutta, C. Sitalakshami, R. Hiremath and S. Sundar, “ShaktiFoundation,” [Online].
Available: http://shaktifoundation.in/wp-content/uploads/2014/02/ Developing-pathways-for-fuel-
efficiency-improvements-in-HDV-sector-in-India.pdf. [Accessed 21 January 2016].
[34] A. Chaudhary, “UNEP,” [Online]. Available: http://www.unep.org/transport/lowcarbon/
trainingWorkshop/Day-3%20Apr%2013%202012/Session-2/PresentationAC_%20Electric%
20Mobility%20Strategy%20for%20low%20carbon.pdf. [Accessed 21 January 2016].
[35] M. G. Badami, 22 November 2010. [Online]. Available: http://casi.sas.upenn.edu/ iit/badami.
[Accessed 21 January 2016].

82
INSTITUTE OF URBAN TRANSPORT (INDIA)
1st floor, Anand Vihar Metro Station Building,
(Entry Adjacent to Gate No.1)
Delhi- 110092 (India)
www.iutindia.org

You might also like